Food Franchise Under 5 Lakhs in India  

India’s food business market is experiencing significant growth, with the food service sector projected to reach $139.8 billion by 2030, growing at a CAGR of 10.41% from 2025 to 2030. Changing consumer preferences and dietary habits have fueled demand for innovative food ventures, including cloud kitchens, health-focused eateries, and vegan businesses.

With investment options that fall under the ₹5 lakh range, food franchising in India offers a lucrative opportunity for aspiring entrepreneurs. Food franchises are among the fastest-growing sectors in the Indian economy, providing a well-established business model, brand recognition, and operational support. These low-cost franchises serve as an ideal entry point for new entrepreneurs, combining brand familiarity with a manageable investment. Different food concepts, from Indian street food outlets to modern cafés, cater to a wide variety of consumer preferences while minimizing the risks associated with launching a new brand from scratch.

Meanwhile, a well-structured food retail industry, shifting consumer behaviors, and increasing demand for convenience have contributed to the success of food franchises. This guide explores key advantages, profitability factors, and the top food franchises in India under ₹5 lakh worth considering for investment.

Advantages of Choosing a Food Franchise

• Brand Recognition and Trust: There exist franchises whose market recognition and customer trust have been established; by adopting this franchise, one avoids the real problem of creating brand awareness for his or her new business. This immediate credibility causes customers to flock in, leading to an acceleration of business growth.
• Proven Business: Model Franchises have tested and refined operational systems, significantly lowering the risk of failure. Systematic processes and procedures provide for a quite clear roadmap to success.
• Comprehensive Training and Support: The supported know-how covers operations, food preparation, customer service, and management; The support provision acts as the strongest guarantee for maintaining quality and service standards across all locations.
• Lower Initial Investment: Several food franchises, especially in the Indian market, allow entry below 5 lakh and are therefore viable for budding entrepreneurs with limited resources. This includes kiosks and small formats.
• Marketing & Promotional Support: The national marketing initiatives and brand promotion on behalf of the franchisees mitigate individual marketing costs and bring visibility to the possible maximum. 
• Supply Chain Efficiency: Established supplier networks coupled with bulk purchasing power are aiding in enhancing product quality while minimizing costs for better profit margin. 

Criteria for Selecting an Affordable Food Franchise Under 5 Lakhs in India

The choice of the right Food Franchise Opportunity Under 5 Lakhs in India is crucial for success. Some of the important factors are discussed below.

1. Brand Reputation

Brand image is an integral part of any franchise. Research is conducted to understand the brand’s existence in your area and for whom the brand would be beneficial. Some are more of household name brands, like The Belgian Waffle Co. or Chaat Adda, that would generate a huge loyal customer base.

2. Initial investment and fees

While going for investment on a food franchise under 5 lakhs in India, do take into account the break-up of costs related to franchise fees, equipment, and operational costs. Some brands might offer several models like kiosks, carts, or full-scale outlets that will attract differing investment levels.

3. Demand for the product in your locality

Analyze the market to know if the franchise’s product suits local tastes and preferences. For example, brands like Chai Sutta Bar Franchise that focus on chai are more likely to thrive in places where a strong tea culture is embedded. A Kulfi franchise like Kulfi Nation would be better off in places with warm weather. 

4. Franchise Support

Determine whether the support provided by the franchisor is of the kind you will need. Evaluate franchises that offer training and marketing materials, including operation. A brand that intends to invest in the prosperity of its franchisee will most likely be a system that is supportive enough to help reach profitability levels.

5. Flexibility in Business Model

Consider a flexible franchise profitable business opportunity model, and its business can be undertaken with minimal space and resources available. Small entrepreneurs who either have limited space or funding are suitable for small kiosks or food carts. Suitable to those who have high footfall the mini café model is.

6. Low Royalty Fees

Those collect royalties or form a percentage of your monthly revenue. Seek franchises with low or no royalties to benefit from healthy profits. For example, The Lassi Shop or Juice Lounge usually has attractive fee structures for small investors.

Best 20 Food Franchises Under 5 Lakhs in India

1. Wow Momo Franchise

• Growth: 25% year-over-year growth rate
• Revenue: ₹500+ crore annual revenue (2023)
• Profit Margin: 25-30%
• Outlets: Expanded from 350+ in 2021 to 650+ outlets in 2024

WowMomo is a mammoth momos and dumplings brand that has varied authentic Asian flavors across the country. The brand has redefined traditional momos as it now comes in pan-fried, steamed, fried, and chocolate momos. Quality and hygiene remain their commitment that has made them a name to reckon with in quick-service restaurant brands. This is the best food franchise under 5 lakhs in India. 

They provide employees with training and maintain high quality in every branch. They also provide operational support and marketing support for the success of a franchise. Moreover, their recipes and operations are standardized. So, a new franchisee can easily keep up with the quality level.

• Industry: QSR
• Segment: Asian Fast Food
• Franchise Cost: ₹ 4-5 Lakhs
• Space Required: 150-200 sq ft
• Franchise Fee: ₹2 Lakhs  
• Profit Margin: 25-30%

Read about Wow Momo Franchise Cost in Detail.

2. Subway Franchise

• Growth: 15% year-over-year growth
• Revenue: Approximately ₹450 crore (2023)
• Profit Margin: 20-25%
• Outlets: 700+ outlets across India

Subway is one of the world’s largest sandwich chains, especially popular for its submarine submarines and healthy food options. The brand offers a unique form of eating as the customers can see their food prepared fresh before them. Their business model is mainly based on giving fresh ingredients and letting the consumers choose them according to their preferences and tastes. 

The company already has a franchise system with established procedures and wide-ranging training programs in place. They have manuals that elaborate on everything from food preparation to customer service protocols. Because of the health-conscious offerings, the brand has managed to remain pretty loyal to its customers. 

• Industry: QSR 
• Segment: Fast Food Chain
• Franchise Cost: ₹4.5-5 Lakhs 
• Space Required: 300-400 sq ft 
• Franchise Fee: ₹2.5 Lakhs 
• Profit Margin: 20-25%

Read about Subway Franchise Cost in India Detail.

 3. Amul Ice Cream Franchise

• Growth: 20% year-over-year growth
• Revenue: Part of Amul’s ₹61,000 crore revenue (2023)
• Profit Margin: 30-35%
• Outlets: 10,000+ retail outlets nationwide

This ice cream franchise of Amul is a most sought-after business opportunity in India’s frozen dessert market. Such a brand, which happens to be a flagship dairy brand of India, commands wide acceptance and a large variety of products. It offers an ice cream parlor with formats ranging from basic counter service to a café-style setup. 

The Amul franchise is supported entirely by the company in terms of equipment, marketing materials, and regular supply chain management. Amul provides complete training on the handling of products, storage, and response to customers. Seasonal deals and launching new products raise the excitement among the customers and keep them involved throughout the entire year. 

• Industry: Dairy Products  
• Segment: Ice Cream Parlor  
• Franchise Cost: ₹4-5 Lakhs  
• Space Required: 100-150 sq ft  
• Franchise Fee: ₹1.5 Lakhs  
• Profit Margin: 30-35%

Explore detaled guide for Amul Franchise Cost.

4. Biryani by Kilo

• Growth: 40% year-over-year growth
• Revenue: ₹300 crore (2023)
• Profit Margin: 28-32%
• Outlets: Growth from 60 to 150+ outlets (2020-2024)

Biryani by Kilo has emerged as a premium brand to serves biryani with original preparation methodology and quality ingredients. This is the best biryani franchise under 5 lakhs. Each biryani is freshly handis prepared individually by the age-old dum cookery process. It had been popular for its taste and quality maintained uniformly at every single outlet. It served regional styles of biryani with complimentary dishes on the menu. 

Franchise support includes everything from kitchen fit-outs and furniture to cleaning and hygiene training for the staff, quality control measures, and even online presence and network of delivery infrastructure. Emphasis on proper preparation methods by the brand and premium positioning helps maintain higher profit margins.

• Industry: Food Service
• Segment: Biryani Specialist
• Franchise Cost: ₹4.8-5 Lakhs
• Space Required: 200-250 sq ft
• Franchise Fee: ₹2 Lakhs
• Profit Margin: 28-32%

5. Chai Point Franchise

• Growth: 35% year-over-year growth
• Revenue: ₹200+ crore (2023)
• Profit Margin: 35-40%
• Outlets: Expanded from 180 to 300+ stores

Chai Point has transformed the organized tea retail space of India, bringing it what it so desperately needed – modernization. Offering a wide variety of teas with snackable options, Chai Point had a spot between the traditional Indian tea essence and the contemporary café experience. Smart dispensing machines and efficient inventory management systems underpin their high reliance on technology in the smooth functioning process.

It aims for brewing excellence through extreme training in brewing techniques and customer service. Further, the company strategizes with location selection and store design to ensure an attractive and accessible setting. Chai Point has a very strong presence in corporate and high-traffic locations ensuring there is business coming in at a consistent interval during the day.

Chai Point inspires aspiring entrepreneurs who look for options in Food Franchise Under 5 Lakhs in India. The model is groundbreaking but cost-effective, considering that it could modify an age-old beverage to be modern while milking the urban and corporate market.

• Industry: Beverage Retail
• Segment: Tea Café
• Franchise Cost: ₹4.5-5 Lakhs
• Space Required: 150-200 sq ft
• Franchise Fee: ₹1.8 Lakhs
• Profit Margin: 35-40%

 6. Chaayos Franchise

• Growth: 30% year-over-year growth
• Revenue: ₹150 crore (2023)
• Profit Margin: 30-35%
• Outlets: 300+ outlets across major cities

Chaayos is a modern chai café chain that offers “Meri Wali Chai” where customers can customize their tea according to taste. The brand is an amalgamation of traditional Indian tea culture and contemporary café aesthetics and service standards. The menu includes various forms of tea in addition to food items that complement their beverage offerings. Partners are trained through a comprehensive process of tea preparation and café management. 

Their comprehensive technology platform comprises customized POS systems and customer relationship management tools. Customization and quality control are the fundamental support behind the brand’s strong focus on creating customer satisfaction. 

• Industry: Beverage Retail
• Segment: Tea Café
• Franchise Cost: ₹4.8-5 Lakhs
• Space Required: 200-250 sq ft
• Franchise Fee: ₹2 Lakhs
• Profit Margin: 30-35%

7. Belgian Waffle Co.

• Growth: 45% year-over-year growth
• Revenue: ₹250 crore (2023)
• Profit Margin: 40-45%
• Outlets: Increased from 200 to 400+ outlets

The Belgian Waffle Co. introduced fresh, made-to-order waffles to India with its recipes and ways of preparation. Both sweet and savory variations of waffles are presented by the brand according to Indian taste buds. Such a compact design of the kitchen and the efficiency of working make it adaptable for all location formats. 

Franchising provides total training in the techniques of preparing waffles and equipment handling. They follow stringent quality controls over the ingredients as well as preparation processes. The fresh preparation thrust along with the option of providing customization has an appeal among the young lot of consumers. 

• Industry: Quick Service Restaurant 
• Segment: Dessert/Snacks  
• Franchise Cost: ₹4-4.5 Lakhs  
• Space Required: 100-150 sq ft  
• Franchise Fee: ₹1.5 Lakhs  
• Profit Margin: 40-45%

 8. Chai Sutta Bar

• Growth: 50% year-over-year growth
• Revenue: ₹120 crore (2023)
• Profit Margin: 35-40%
• Outlets: Expanded from 150 to 400+ outlets

Chai Sutta Bar has carved a niche in itself offering tea in kulhad-earthen cups with a modern café experience. The brand catered to the younger population through appealable ambiance with rustic elements well blended into contemporary styles. Tea preparations accompanied by quick bites and snacks are great bait for college students and young professionals at this venue.

The franchise teaches overall tea preparation techniques and customer service procedures. Their unique marketing style and digital presence ensure continuous visibility of the brand and sustained customer interaction. The kullhadd employed to serve tea formed a distinctive selling proposition and raised a significant stake in the pottery artisans as well. 

• Industry: Beverage Retail  
• Segment: Tea Café
• Franchise Cost: ₹3.5-4 Lakhs  
• Space Required: 150-200 sq ft  
• Franchise Fee: ₹1.5 Lakhs  
• Profit Margin: 35-40%

Know about Chai Sutta Bar franchise cost in detail.

9. Goli Vada Pav

• Growth: 25% year-over-year growth
• Revenue: ₹150 crore (2023)
• Profit Margin: 30-35%
• Outlets: Growth from 350 to 500+ outlets

Goli Vada Pav has converted Mumbai street food into a successful QSR format, where it sustains standard quality and hygiene standards. Being eased in this manner, it intends to retain the authenticity of vada pav while offering the same quality all over its outlets. Brand-specific spice mixes and preparation techniques ensure that there is no variation of taste for the brand. 

Franchise partners will receive thorough training in food preparation, handling, and storage to meet the brand’s stringent quality standards. Goli Vada Pav offers all necessary equipment, marketing materials, and operational guidance, hence a fantastic opportunity for an entrepreneur. On the menu are various vada pavs and items that form complementing pairs to attract a wide customer base.

For an individual searching for a Food Franchise Under 5 Lakhs in India, Goli Vada Pav is an excellent example of how street food can be adapted into a modern, scalable business while retaining its essence. Its alignment with the vibrant street food culture of India ensures steady customers and business inflows.

• Industry: Fast Food Restaurant  
• Segment: Street Food of India  
• Franchise Fee: ₹4-4.5 Lakhs  
• Space Required: 100-150 sq ft  
• Franchise Fee: ₹1.8 Lakhs  
• Profit Margin: 30-35%

10. Rolls Mania

• Growth: 30% year-over-year growth
• Revenue: ₹100 crore (2023)
• Profit Margin: 25-30%
• Outlets: Increased from 150 to 250+ outlets

A market leader in the roll and wrap segment, the brand Rolls Mania delivers a wide variety of Indian as well as fusion rolls. The brand standardizes the street food roll preparation process; yet, it carries authentic flavors and quality. They have a vegetarian and non-vegetarian menu with different innovative combinations, catering to varied tastes and preferences. 

The brand provides thorough training on preparation methods, hygiene expectations, and customer satisfaction procedures. Their eased and rapid kitchen planning and equipment establishment maximize the utilization of available space and efficient functioning. They keep giving new flavors and mixes that catch people’s attention to the menu. 

• Industry: Quick Service Restaurant 
• Segment: Roll & Wraps
• Franchise Cost: ₹4.5-5 Lakhs  
• Space Required: 150-200 sq ft  
• Franchise Fee: ₹2 Lakhs  
• Profit Margin: 25-30%

11. Cafe Udupi Ruchi

• Growth: 20% year-over-year growth
• Revenue: ₹80 crore (2023)
• Profit Margin: 25-30%
• Outlets: 200+ outlets across India

Cafe Udupi Ruchi is a franchise with a focus on authentic South Indian vegetarian food, which has a complete menu with dishes or varieties of a particular product in a modern café and a standardized format from traditional South Indian food, without losing authenticity in taste or quality. Their menu includes popular items like dosas and idlis and specialty South Indian dishes. 

The franchise offers wide-ranging training in preparation methods and sustains quality constancy for all dishes in all places. Their kitchen layout and selective equipment help to optimize operations and improve the speed of service. The brand’s focus on authentic recipes and traditional preparation methods appeals to a customer who is keen on getting real South Indian cuisine. 

• Industry: Restaurant  
• Segment: South Indian Food  
• Franchise Cost: ₹4.8-5 Lakhs  
• Space Required: 250-300 sq ft  
• Franchise Fee: ₹2.2 Lakhs  
• Profit Margin: 25-30%

12. Tandooriwala

• Growth: 28% year-over-year growth
• Revenue: ₹70 crore (2023)
• Profit Margin: 28-32%
• Outlets: 150+ outlets nationwide

Tandooriwala has tasted huge success in building the QSR format for dining as well as taking away, specializing in North Indian tandoor delicacies. The brand has standardized recipes and processes for maintaining quality consistency across all the outlets. A variety of tandoor items is available with support from other North Indian dishes. The franchise would train at all levels in operations within the tandoor, food preparation, and quality control measures. 

For their kitchen design, they adopt proper space utilization to enhance the efficiency of tandoor operations. Authentic tandoor preparation and quality usage of ingredients remain a factor to ensure loyalty to the brand, along with continuous support in marketing and promotional activities for a sales lift.

• Industry: Quick Service Restaurant  
• Segment: North Indian Cuisine  
• Franchise Cost: ₹4.5-5 Lakhs  
• Space Required: 200-250 sq ft  
• Franchise fee: ₹2 Lakhs  
• Profit Margin: 28-32%

13. Kathi Junction

• Growth: 30% year-over-year growth
• Revenue: ₹60 crore (2023)
• Profit Margin: 30-35%
• Outlets: 100+ outlets

Kathi Junction is an authentic Kolkata-style kathi roll with a modern QSR approach. It has been able to standardize the old style of making kathi rolls without compromising on authenticity and quality. The menu consists of several vegetarian and non-vegetarian items, all of which have signature spice blends and preparations. They undertake detailed training in roll preparation techniques and keeping consistency in taste and quality. 

Its fast service with efficient kitchen setup along with the selection of equipment would provide quick service and optimal usage of space. The brand would emphasize the highest quality ingredients and proper hygiene measures. They also provide regular support in inventory management and activities related to marketing.

• Industry: Quick Service Restaurant  
• Segment: Roll & Wraps  
• Franchise Cost: ₹4-4.5 Lakhs  
• Space Required: 150-200 sq ft  
• Franchise Fee: ₹1.8 Lakhs  
• Profit Margin: 30-35%

14. Cream Bell

• Growth: 25% year-over-year growth
• Revenue: ₹200 crore (2023)
• Profit Margin: 25-30%
• Outlets: 1,500+ outlets nationwide

A more popular ice cream brand, Cream Bell has brought to the market innumerable tastes-from delicious to innovative that have catered to the varied preferences of the customers. Founded with the promise of quality and taste, it emerged as a trusted name in the country’s ice cream segment.

• Segment: Ice Cream and Desserts
• Franchise Cost: ₹3.5–5 Lakhs
• Space Required: 100–150 sq ft
• Profit Margin: 25–30%A popular ice cream brand with diverse flavors and consistent demand across urban and semi-urban areas.

15. Chaat Adda

• Growth: 35% year-over-year growth
• Revenue: ₹50 crore (2023)
• Profit Margin: 35-40%
• Outlets: 100+ outlets

Chaat Adda has transformed the street-style chaat into an institutionalized retail format, while the authenticity of flavors and variety is maintained in the product. Hygiene-driven comfort is availed of by the brand to its various regional chaat specialties. The menu has popularized it with the most sought chaat from every region of India along with numerous innovative fusion varieties. 

Franchisees are given extensive training in chaat preparation techniques as well as quality standards. The kitchen design and equipment arrangement have been designed to ensure smooth operations and fresh preparation. Authentic recipes and quality ingredients where the brand focuses on maintaining customer satisfaction. 

• Industry: QSR
• Segment: Indian Street Food
• Franchise Cost: ₹4-4.5 Lakhs
• Space Required: 150-200 sq ft
• Franchise Fee: ₹1.8 Lakhs
• Profit Margin: 35-40%

16. Rollacosta

• Growth: 30% year-over-year growth
• Revenue: ₹40 crore (2023)
• Profit Margin: 30-40%
• Outlets: 80+ outlets

Rollacosta is a dynamic QSR brand focusing on wraps, rolls, and grilled fast food. It is popular for offering a varied variety of vegetarian and non-vegetarian food items from its menu that suit the taste bud of the modern consumers. The low-investment model coupled with higher profit margins makes Rollacosta an excellent business opportunity for aspiring entrepreneurs. This compact setup ideally suits malls or very high-traffic areas, plus some robust training and operational support, and therefore a scalable and successful business venture in the fast-food industry.

• Segment: Wraps and Rolls
• Franchise Cost: ₹4.5–5 Lakhs
• Space Required: 150–200 sq ft
• Profit Margin: 30–40%Focuses on quick, delicious wraps and rolls, targeting youth and fast-food lovers.

17. Pizza Da Dhaba

• Growth: 25% year-over-year growth
• Revenue: ₹45 crore (2023)
• Profit Margin: 25-30%
• Outlets: 75+ outlets

Pizza Da Dhaba had a unique fusion concept dhaba-style ambiance marrying Italian pizza with Indian flavors and topping. The brand comes up with innovative menu offerings that feature pizzas topped with classic Indian spice combinations and toppings. The unique selling proposition of the brand is it creates a casual fine dining experience both for a person who craves for pizza and a hardcore Indian foodie. 

The franchise provides comprehensive training on preparing pizzas, preparing dough, and maintaining consistency in quality. They also have specifically designed ovens and preparation places for pizzas to achieve efficient practices in the kitchen. 

• Industry: Quick Service Restaurant 
• Segment: Fusion Pizza 
• Franchise Cost: ₹4.8-5 Lakhs
• Space Required: 200-250 sq ft 
• Franchise Fee: ₹2.2 Lakhs 
• Profit Margin: 25-30%

18. Keventers (Mini Setup)

• Growth: 35% year-over-year growth
• Revenue: ₹150 crore (2023)
• Profit Margin: 35-40%
• Outlets: 250+ outlets

Keventers has brought the milkshake craze in a stylish bottle and high-end positioning in the beverage space. The mini setup model is compact yet efficient to serve the masses that their signature milkshakes and other beverages are for. The menu offers classic flavors alongside unique ones that cater to the modern choice of tastes. 

They provide intensive training in preparing shakedowns, standards of hygiene, and customer service procedures. Their effective configuration consists of particular machines used in the preparation and stockholding of shakes but at controlled temperatures.

• Industry: Beverage Retail  
• Segment: Milkshakes & Beverages  
• Franchise Cost: ₹4-4.5 Lakhs
• Space Required: 100-150 sq ft  
• Franchise Fee: ₹1.8 Lakhs  
• Profit Margin: 35-40%

 19. Thickshake Factory

• Growth: 40% year-over-year growth
• Revenue: ₹80 crore (2023)
• Profit Margin: 40-45%
• Outlets: 150+ outlets

Thickshake Factory mainly sells high-class thick shakes with a lot of innovative flavors and combinations. As a brand, they carved out their niche in the beverage market using signature thick shakes and presentation styles. Their menu includes flavors and tastes ranging from traditional to experimental, seasonal favorites to premium additions.

The franchise offers extensive training in shake preparation techniques and maintains consistency in the taste and quality of the product. The setup has professional blenders and refrigeration systems that are geared to work at their best levels. The brand focuses on premium ingredients and recipes for unique offerings that hold better profit margins. 

• Industry: Beverage Retail  
• Segment: Premium Milkshakes  
• Franchise Cost: ₹4.5-5 Lakhs  
• Space Required: 150-200 sq ft  
• Franchise Fee: ₹2 Lakhs 
• Profit Margin: 40-45%

20. Lassi Shop

• Growth: 35% year-over-year growth
• Revenue: ₹40 crore (2023)
• Profit Margin: 35-40%
• Outlets: 100+ outlets

Lassi Shop redefined the idea of the authentic Indian yogurt drink by fusing modern retailing practices with innovative flavors. Just as what happened with the applications of modern presentation and packaging techniques on such traditional methods, the brand was enabled to modernize traditional lassi-making methods without compromising authenticity. Its menu is full of a variety ranging from classic lassis to creative fusion flavors, making seasonal fruit-based offerings to accommodate the diversity of tastes.

Preparation, handling of ingredients, and the quality of consistent results from all outlets have been covered through comprehensive training provided to the franchisees. Some specialized lassi preparation equipment and a refrigeration system to ensure proper chilling of the product at ideal storage temperatures shall also be provided to the franchises. Fresh ingredients and authentic techniques of preparation shall ensure a high-quality product. Support for a franchise includes managing inventory and conducting promotional activities to ensure efficient processes.

Lassi Shop is an ideal selection for entrepreneurs looking for a food franchise under 5 lakhs in India.

• Industry: Beverage Retail  
• Segment: Indian Traditional Drinks  
• Franchise Cost: ₹3.5-4 Lakhs  
• Area Required: 100-150 sq ft  
• Franchise Fee: ₹1.5 Lakhs  
• Profit Margin: 35-40%

Steps to Start a Food Franchise in India  

Growing middle class and changing lifestyles with more people eating out are the factors that keep food franchises in high demand. Here is a step-by-step on how to get one:  

1. Select the Right Franchise

All your interests and budget should guide you in researching the best-known food franchises. Some of the well-known franchises are Domino’s, Subway, and Baskin Robbins. You may also opt for Indian franchises like Haldiram’s Franchise or Biryani By Kilo. See franchises with a proven business model, good reputation, and systems for new franchisees.

2. Franchise Cost

The initial investment will also depend on the brand. Most food franchises demand a one-time franchise fee, along with a setup for the required infrastructure, and royalties as a percentage of sales. In the case of QSR, the setup might cost anything for a food franchise under  ₹5 lakhs in India. Remember and factor in these costs while working out your budget.

3. Location is everything

Depending on the location, a food franchise could be very successful. A mall, business district, or near a school and college could be an appropriate location, considering that there will be ample customers who would visit those places. Do your market research to find out the competition for your type of food in the locality.

4. Legal Formalities

It includes registration of your business, obtaining the required licenses like FSSAI and GST registration, health, and safety permits, and finally executing a franchisee agreement. In the said agreement, it will be clarified what are your rights and liabilities together with profit-sharing details.  

5. Setting Up the Outlet

Note the instructions the franchisor has put in place on how to open an outlet-from interior design to sourcing equipment and menu standardization. Most franchisors train the employees to ensure uniformity in food quality and service delivery.

 6. Marketing and Promotion

Most of the franchisors have marketing campaigns at the national level, but you should also invest in local levels to attract customers. You must therefore implement digital marketing and social media to attract a loyal customer base by offering them discounts.

Factors Affecting Profitability :

• Location Selection: Everything from customer traffic to potential sales comes directly. Sites offering higher customer traffic usually pay better returns, but that means they are expensive.
• Operational Efficiency: With more efficient operations come great inventory management and greater staff productivity, directly related to profit margins. Cost control and resource mobilization are of utmost importance. 
• Market Competition: Knowing the local competition, offering competitive prices, and remaining profitable is very important. Erosion of customer share by market saturation impacts revenues.
• Quality Consistency: Consistent food and service quality contribute to building customer loyalty and positive word-of-mouth, which are essential for long-term profits.
• Cost Management: Raw material costs, labor costs, and overhead charges must be controlled efficiently to ensure healthy profit margins. Furthermore, inventory management should be smart.
• Local Market: Adaptation Successfully adapting to local tastes and preferences while maintaining brand standards will affect customer acceptance and sales volume greatly.

Conclusion  

It is absolutely achievable if one wants to open a food franchise under 5 lakhs in India. If one gives the needed research, planning, and execution, one can easily expand into a successful low-investment business model. A low-cost franchise usually comes with solid brand support and operational support, so the two are more in favor of first-time business owners. Focus on customer satisfaction and efficient management to open up your business.

FAQs

1. Can I start a food franchise with no experience? 

Yes, any franchisee can start with most franchisors providing training and operational support; therefore, previous experience is not necessary. 

2. Which are the examples of food franchises under 5 lakhs in India? 

Popular examples include Chaat Adda, Tea Time, and Rollacosta.

3. How long does it take to set up a food franchise?  

Usually, from 1–3 months, which depends on the brand and location.

4. What is the average profit margin in a food franchise?  

Usually, the profit margins in food franchises range between 20–40%, depending on the product and the location.