Top 5 Successful Franchise Ideas for Small towns

Nikita Arya
Nikita Arya Sep 10 2019 - 4 min read
Top 5 Successful Franchise Ideas for Small towns
Many entrepreneurs are willing to explore the untapped small towns for their business expansion, to attract more consumers to them and help these towns regain their charm.

Franchise Ideas for Small Towns

The global culture has heavily influenced the Indian culture and society in a lot of ways. With the effect of globalisation, the bigger cities dazzle like stars in the sky and the limitless opportunities of cities entice the small-town people. They move from small towns and villages to bigger cities, leaving their towns to lose their own charm.

While talking about the economy of small towns, small independent businesses are the major source of revenue, which suggests the gradual rise in rural entrepreneurship. This is why many entrepreneurs are willing to explore the untapped small towns for their business expansion, to attract more consumers to them and help these towns regain their charm. Even a lot many franchise opportunities can be easily explored in such areas as small-town consumers are seeking facilities in their own areas.

Best Franchise for Rural Area in India

For entrepreneurs who are looking to start their business in small towns, here are five low-investment franchise ideas that will do remarkably well in small towns.

Food Trucks

Food truck is a concept that has taken the urban world by storm with its creativity and cost-effectiveness. However, it is a concept that is not a very alien to the rural areas. The concept of food truck is very similar to what we used to call a ‘thela gadi’ (which is like a hand-drawn cart that serves food, vegetables and other kind of products). It’s the mobility of the concept that is making it a low cost venture and keeps the overheads of the company very low. Food trucks are also a perfect option for small budget business as you need not to invest in real-estate.

Many brands in food and restaurant are coming up with their food truck model and are eyeing to expand in small towns. Talking about the investment for this concept, a food truck can be started in around Rs 5-10 lakhs.

 Ice-cream Parlours

In a hot tropical country like India, ice-cream can never go out of demand. Ice-cream parlours are one of the most rewarding business ideas in today’s time. In a small area of 200-400 sq ft, one can start their ice-cream parlour with basic equipment and a few staffing in least investment. As people in small towns have limited investment with them due to lack of resources, a franchise brand can easily help entrepreneurs in growing a business with minimal investment in an ice cream parlour. As per sources, a big brand offers franchise opportunity in an investment of Rs 5-10 lakhs.


In the early times, grandma, grandpa and nannies were often made the caretakers of children when their parents were away. But, in the past few decades, preschools have marked their presence in the society. Pre-schools not just take care of the children but also ensure that students polish their cognitive skills while playing in the pre-school.  

With franchising being a low-cost model, big fishes in the preschool market like EuroKids and KidZee are opting for franchise model to penetrate deeper into the market, including small towns in tier II and III, hence flourishing franchise opportunities in the segment. One can start a preschool franchise in an investment of Rs 10-15 lakhs

Internet services

In today’s technologically driven world, it is difficult to survive with internet services, be it a big or small town. With cheaper mobile handsets and data packs, internet service providers are looking for deeper penetration, even in the small towns and the remotest areas.  

Internet service can be turned into a serious business opportunity via franchising. Even the investment amount in this franchise is quite minimal, starting with Rs 2 lakhs and ranging up to Rs 5 lakhs.

Agri services

In a country like India where agriculture employs over a half the workforce, agriculture related business can be a great thing to encourage rural entrepreneurship. While most of the small towns are generally located at the outskirts, agriculture and farming related businesses can do quite well. With the concepts like microgreens and rooftop farming, agriculture businesses are creating new trends in the economy and can be perfectly utilised by small-town entrepreneurs. An investment of about Rs 5-7 lakhs is required to start a agri-service franchise.


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