Cheapest Food Franchise in India 2025 - Low‑Cost Options Ranked

When you think about starting a food franchise a business model where you sell food under an established brand, the first question is usually the cost. India’s food‑service market is booming, but not every brand requires a multi‑crore outlay. Below you’ll find the truly cheap options that let you join a recognised name without draining your savings.

Why Cost Matters More Than Brand Glamour

Big names like McDonald’s or KFC look impressive, yet their franchise fee the upfront payment to the franchisor for brand rights alone can exceed INR 2crore. For most first‑time entrepreneurs, the real hurdle is the initial investment the total cash needed to set up the outlet, buy equipment and cover working capital. A lower entry point means you can test the market, keep cash flow healthy, and still benefit from an established brand’s marketing muscle.

How We Ranked the Cheapest Food Franchises

• Entry‑cost ceiling: We capped total upfront spend at INR 30lakhs, which includes franchise fee, equipment, fit‑out and the first three months of working capital.
• Royalty structure: Lower royalty percentages (usually 3‑5%) make the business more sustainable once sales pick up.
• Support level: Good training, marketing assistance and supply chain support were non‑negotiable criteria.
• Scalability: Brands that allow multiple unit ownership within a short time frame got a boost.

Top 5 Cheapest Food Franchises in India (2025)

The numbers above are based on publicly disclosed requirements, franchisee interviews, and recent market reports. They are rounded to the nearest lakh for easier comparison.

Deep Dive into Each Brand

Jumbo Kachori

Jumbo Kachori specializes in deep‑fried snacks that are cheap to produce and have a massive street‑food following. Their franchise fee ₹4lakhs includes a portable kiosk design, a starter inventory of spices, and two weeks of on‑site training. Because the menu is limited to 8-10 items, the initial investment ₹12lakhs stays low. Many owners report breaking even within a year, thanks to high footfall and low overhead.

Bikanervala

Bikanervala offers a wider range of Indian sweets and snacks. Though the brand name carries weight, the franchise model focuses on small‑format outlets that can fit into a 200‑sq‑ft space. The franchise fee ₹6lakhs covers kitchen layout, a starter stock of 30kg of dry mixes, and a three‑day training program in Delhi. The royalty of 4% is calculated on gross sales, encouraging the franchisor to help push marketing.

Subway

Subway’s global presence is a big draw. In India, the brand has adapted its menu to include paneer, aloo tikki, and regional sauces. The franchise fee ₹5lakhs is modest compared to other fast‑food giants, but the required initial investment ₹25lakhs includes a semi‑automated sandwich assembly line and a marketing launch kit. The royalty sits at 5%, and the brand offers a strong supply chain that reduces raw‑material waste.

CaféCoffeeDay (CCD)

CCD is India's biggest coffee chain. While flagship stores can cost crores, the franchise program now features “Express” formats that occupy just 150sqft. The franchise fee ₹7lakhs covers equipment (espresso machine, grinder), interior décor, and a two‑day training stint. Royalty is 5% of net sales. Because coffee has a high margin, many franchisees see a healthy return after the first 18 months.

Mithai House

Mithai House is a regional sweet shop that has decided to franchise its concept. The franchise fee ₹2lakhs is the lowest in this list. The brand provides a ready‑made sweet recipe book, a small freezer, and a one‑day hands‑on training session. Initial investment ₹10lakhs covers a modest storefront and raw‑material stock. With low rent and high demand for sweets during festivals, ROI can be as quick as 10months.

How to Choose the Right Cheap Franchise for You

Even among low‑cost options, the best fit depends on your personal situation. Ask yourself these questions:

1. What is my total capital pool? Include personal savings, possible loans, and the cash you can keep as operating reserve.
2. Do I prefer a quick‑service kiosk (Jumbo Kachori, Mithai House) or a seated café (CCD Express, Bikanervala)?
3. How comfortable am I with food preparation versus managing a point‑of‑sale system?
4. Which locations are realistically available to me? High‑footfall malls cost more in rent but can accelerate break‑even.
5. Am I planning to open more than one unit? Some brands (Subway, Bikanervala) offer multi‑unit discounts after the first outlet.

Answering these will narrow the list from five to the one that aligns with your risk tolerance and lifestyle.

Financing Your Cheap Food Franchise

Even a ₹10lakh investment often requires external funding. Here are three practical ways to secure money without drowning in debt:

• Bank small‑business loans: Many Indian banks have schemes for first‑time entrepreneurs. Present a solid business plan that highlights the franchise’s proven ROI.
• Government subsidies: The Ministry of MSME offers credit guarantee schemes that cover up to 75% of the loan value for low‑capex ventures.
• Friends & family: A short‑term, low‑interest loan from trusted sources can keep you flexible during the first three months of operation.

Regardless of the source, keep the debt‑to‑equity ratio below 1.5to stay financially safe.

Common Pitfalls and How to Avoid Them

Cheap doesn’t mean risk‑free. Below are the most frequent mistakes new franchisees make:

• Skipping market research: Even a low‑cost brand can flop if foot traffic is low. Conduct a simple foot‑fall count and competitor analysis before signing.
• Under‑estimating working capital: The initial investment figure usually excludes three months of operating expenses. Budget for rent, staff salaries, utilities, and inventory.
• Ignoring brand compliance: Franchisors often audit outlets for quality and branding. Non‑compliance can lead to fines or termination.
• Choosing the wrong location: A kiosk in a quiet residential lane might never see the daily sales needed to hit ROI.

Plan ahead, keep a cash buffer, and stay loyal to the franchisor’s SOPs.

Step‑by‑Step: From Inquiry to Opening Day

1. Visit the brand’s official website and request a franchise information kit.
2. Review the franchise fee breakdown, royalty percentages and support details to confirm it fits your budget.
3. Prepare a concise business plan (1‑2 pages) covering capital, location, projected sales, and break‑even timeline.
4. Apply for financing (bank loan, government scheme, or personal source).
5. Negotiate the lease for a space that matches the brand’s size requirements.
6. Sign the franchise agreement, pay the fee, and attend the mandatory training.
7. Set up the outlet with the franchisor’s layout guide, install equipment, and stock inventory.
8. Launch a soft opening, collect feedback, and tweak operations.
9. Run a grand opening with the franchisor’s marketing kit to draw the first crowd.

Following these steps reduces surprises and speeds up the path to profitability.

Future Trends for Low‑Cost Food Franchises in India

By 2028, three trends will shape the cheap‑franchise segment:

• Hyper‑local sourcing: Brands that source spices and produce from nearby farms will lower logistics costs and appeal to conscious consumers.
• Digital ordering integration: Even kiosk‑type outlets are adopting QR‑code menus and delivery partnerships, expanding reach beyond foot traffic.
• Mini‑format expansion: Expect more 100‑sq‑ft “pop‑up” concepts, especially in Tier‑2 and Tier‑3 cities where rent is cheap and demand is rising.

Keeping an eye on these developments ensures your franchise stays competitive without needing a big cash injection.