Franchise Opportunities Under ₹5 Lakh

Brands whose listed investment is under ₹5 lakh, open to new franchisees and ranked by FranchiseChuno Score. Compare cost, royalty, terms and red flags.

Franchises Found

Categories Available

Score

Ranked by FranchiseChuno Score

Who Should Invest at This Level

First-time entrepreneurs with some savings, salaried people wanting a side business with a physical presence, and investors in smaller towns where rents are lower. At this budget, formats are usually kiosks, counters, small service outlets or home-delivery models.

Financing This Investment

A Mudra Kishor loan covers above ₹50,000 up to ₹5 lakh for eligible micro-enterprises (PIB, 2025). Lenders usually expect you to fund part of the cost yourself — ask each lender for its figure. CGTMSE, a government credit-guarantee scheme, lets lenders give micro and small enterprises loans without collateral — ask your bank whether your loan can be covered and on what terms.

What the Investment Usually Covers

Cost types to budget for — how they split varies by brand, so check each listing.

Franchise or brand feeOne-time
GST on the fee and royaltyTax
Fit-out, signage and equipmentOne-time
Rent deposit for the premisesDeposit
Opening stockOne-time
Working capital for the first monthsReserve
Royalty or fixed monthly feeRecurring

Returns: What to Expect

We don't print "typical" returns for this budget — they vary too much by brand, site and operator, and brands' own claims are claims, not results. Each listing shows the brand's stated ROI or payback labelled as its claim, and category pages show the spread of payback claims among brands whose terms we've checked. Watch the terms: ROI is yearly profit as a share of your total investment; a profit margin is profit as a share of sales; payback is the months until your cumulative profit equals what you put in; and operating break-even (the month the outlet stops losing money) is not payback.

Pandharpuri Chai

Food & Beverage

Chai kiosk franchise: ₹2.5–3 L, 60–100 sq ft, 0% royalty. Claims 350+ stores; franchisor revenue ₹9.8 Cr in FY25, down 13%.

Investment

₹2.5 L - ₹3 L

Tea Time

Food & Beverage

Hyderabad tea-outlet chain (tea, coolers, shakes). ₹5 L unit franchise (incl. taxes) plus unexplained extras; brand claims 4,000+ outlets.

Investment

₹5 L

Tea House

Food & Beverage

Andhra tea kiosk chain: ₹3.25 L fee plus ₹30–50K interiors, no royalty, 115 outlets on its locator. No registered company found behind it.

Investment

₹3.55 L - ₹3.75 L

Frequently Asked Questions

Common questions about franchise investments under ₹5 lakh

Can I open a food franchise for under ₹5 lakh?

Some food brands offer kiosk, counter or delivery-only formats at this level. Filter this page by food and beverage to see which brands list a total investment under ₹5 lakh, and check what that figure leaves out — rent deposits and GST are often extra.

Can I get a good location on a ₹5 lakh budget?

Usually not a prime high street in a metro. Kiosks in residential complexes, office buildings or neighbourhood markets are more realistic, and smaller cities give you more choice. Get real rent quotes before you commit to a brand.

What royalty will I pay?

It varies by brand: a percentage of sales (check whether gross or net), a percentage of margin, or a fixed monthly fee. Each listing shows the royalty and its base where the brand publishes it, and the franchise agreement is where it must be written down.

Is territory exclusivity available at this level?

Sometimes. If the brand offers it, get the exact area — a radius or a list of PIN codes — written into the franchise agreement, along with what happens if the brand sells online into your area.

Explore Other Investment Ranges

Find franchise opportunities that match your budget

Under ₹1 Lakh

Under ₹10 Lakh

Under ₹20 Lakh

Under ₹50 Lakh

Under ₹1 Crore

Above ₹1 Crore