List of Franchise Under 2 Lakhs: A Comprehensive Guide

Starting a franchise is one of the best ways to own a business with the framework of a well-established brand name.

Although many franchises demand heavy investments, yet, some of them prove to be quite profitable for entrepreneurs searching for a franchise below 2 lakhs.

This article talks about several types of low-investment franchise opportunities available in different sectors such as food, retail, education, and service.

There are still sweet offerings out there for prospective entrepreneurs looking for a franchise under 2 lakhs, there are many kinds of options available; this article discusses some low-investment franchise opportunities in different sectors like food, retail, education, and services.

What Is a Franchise Business Model?

The franchise business model is a working relationship between the franchisor and the franchisee.

Here, the franchisee gets the right to operate under the brand name, along with access to investment in the already established business practices, marketing strategies and support throughout the operation.

As a return, it has to invest the amount and pay constant royalty fees.

Key Elements of the Franchise Model:

1. Brand Identity: The franchisee will have to operate in the name and logo of the franchisor as well as using its reputation and customer base.
2. Standardized Operations: These should be met by the franchisor are operational guidelines for the standardization of all the outlets.
3. Training and Support: New franchisees typically receive training on business policy operations, customer handling, and product management.
4. Marketing Assistance: Franchisors generally would assist with advertising campaigns both at the local and national levels.
5. Shared Revenue Model: The profit that the franchisee earns at their outlet usually garners the sharing of royalties with the franchisor.

Also Read: Understanding Franchise Advertising Fees: A Comprehensive Guide

Why Choose a Franchise Under 2 Lakhs?

1. Fewer Financial Risks: Small investments cut into the financial exposure risk.
2. Named Brand: Launch with a trusted name that will assure customers’ trust.
3. Easy Entry: Most inexpensive franchises do not demand much infrastructure or even prior experience to run a business.
4. Franchisor Support: Many franchises provide training, marketing support, and operational assistance as well.

Sectors Offering Franchises Under 2 Lakhs

1. Food and Beverage Franchises

Chai Ka Adda:

Expenses- 1-2 lakhs

Most likely, Chai Ka Adda is very well-known among the population because of its tea and snacks menu, which serves people at very reasonable rates.

Also, it follows a very promoted model of kiosks, an added advantage is that it requires very little space and manpower.

Reasons to Choose it: Tea and quick snacks are such areas where most people will always be rushing into some place.

Ice Cream Rolls Franchise:

Expenses- 1.5-2 lakhs

Ice cream roll parlours have set out their trends in metropolitan cities as well as in semi-urban areas. Apart from that, the franchise grants training for preparation and marketing support.

Reasons to Choose it: An unusual and eye-catching product line.

Kulfi House:

Expenses- 1.8 lakh 

It specializes in kulfis traditionally made but with modern flavours; it can also cater to patrons of desserts but with little space. 

Reasons to Choose It:  It works best in different seasons and can give profitable returns.

2. Retail Franchises

Grocery Express:

Investment – Rs. 1.5 Lakhs

This franchise is entirely concentrated on small grocery items to small towns and tier-2 cities.

Reason to choose– All essentials ensure a constant demand amid all economic conditions.

Mobile Accessories Kiosk:

Investments- ₹2 lakh 

This is best suited for malls and marketplaces and sells mobile covers, chargers, and headphones.

Reason to choose: High-profit margin and increasing mobile market.

Stationery and Gifts Outlet:

Investment- Rs 1.9 Lakhs

Ideal for locations within the vicinity of schools and colleges, these outlets cater to school supplies, gifts, and personalized items.

Reason to choose- Consistent demand and low operational costs.

3. Education and Training Franchises

• Abacus Training Center:
  Investment: ₹1.2 lakhs
  Abacus training is popular among parents aiming to enhance their children’s cognitive skills.
  Why Choose It?: Low investment and recurring revenue from course fees.
• Spoken English Classes:
  Investment: ₹1.8 lakhs
  With increasing emphasis on English proficiency, this franchise caters to students and professionals.
  Why Choose It?: High demand in non-metropolitan areas.
• Coding for Kids Franchise:
  Investment: ₹2 lakhs
  Teaching basic programming and technology to kids has become a profitable venture.
  Why Choose It?: Future-focused and aligns with the digital era.

4. Service-Oriented Franchises

• Courier and Delivery Services:
  Investment: ₹1.5 lakhs
  With the rise of e-commerce, courier services are in constant demand.
  Why Choose It?: Steady income and an expanding market.
• Travel Agency Franchise:
  Investment: ₹1.8 lakhs
  This involves booking tickets, holiday packages, and visa assistance.
  Why Choose It?: Ideal for tourism-centric locations.
• Home Cleaning Services:
  Investment: ₹1.6 lakhs
  Catering to urban households, these franchises offer cleaning, sanitization, and pest control services.
  Why Choose It?: Growing awareness of hygiene creates high demand.

5. Health and Wellness Franchises

• Diet Consultancy Franchise:
  Investment: ₹1.5 lakhs
  Providing diet plans and wellness consultations, this franchise is suitable for individuals passionate about fitness.
  Why Choose It?: Low operational costs with high returns.
• Yoga and Meditation Studio:
  Investment: ₹2 lakhs
  Focused on holistic health, this franchise provides yoga and meditation training.
  Why Choose It?: Increasing awareness of mental and physical well-being.
• Herbal Products Store:
  Investment: ₹1.7 lakhs
  Selling natural skincare, haircare, and dietary supplements, this franchise caters to health-conscious customers.
  Why Choose It?: Low competition and high-profit margins.

How to Select the Right Franchise Under 2 Lakhs?

1. Analyze Demand In The Market: Select a consistently or steadily growing sector.
2. Understand the Franchise Model: Make sure you understand the training, marketing, and operational support provided by the franchisor. 
3. Assess Requirements In Location: Some franchises are more successful in cities, while others will flourish more in semi-urban or rural areas. 
4. Study the Competition: Go for a franchise that has a unique selling proposition in the vicinity. 
5. Financials Check: Do the investment analysis, return on investment, and cost of operation to ensure legal practice.

Steps to Start a Franchise Under 2 Lakhs

1. Research: Find franchises that match your abilities, proclivity, and finances.
2. Contact Franchisors: Approach franchisors to understand what they have to offer, in terms and conditions.
3. Sign the Agreement: Careful reading and signing the franchise agreement should ensure that you are very clear on all terms stated.
4. Settle into the business: Arrange for premises, equipment, and initial stock required.
5. Attend Training: Most franchisors send their franchisees for a training course on operations as well as marketing.
6. Launch and Market: Through digital marketing, local advertising as well as word-of-mouth, promote your business.

Challenges of Running a Low-Investment Franchise

 1. Limited Margins

1. Under low-cost franchises, small capital investments often yield slim profit margins. The entry cost is minimal, as is the potential income per transaction or service rendered.
2. For example, a tea or snack kiosk under this kind of low-cost franchise could sell high amounts on an everyday basis but could very well have a low margin for each sale. This makes earnings very small and considerable profits hard to come by, particularly during lean seasons or economic downturns.

2. Scalability Issues

1. While instituting a low-cost franchise is not much of a headache, scaling it up proves a difficult task. Expansion is because of the overwhelming demand that has come up with a significant investment in infrastructure, marketing, or just hiring staff. A case point is that a small franchise-with-now multiple outlets-is too early to consider for most aspiring franchisees.
2. In addition, there could be a lot of rigid policies imposed by the franchisor when it considers boundaries that prevent expansion for you in the framework of the brand.

3. High Competition

The low cost at which franchises are listed typically lures in a host of potential small business owners, each seeking to slice a piece of the pie for themselves.

A franchise, as most operate, doesn’t create its market; rather, it goes outside the market the same as food stalls, many other educational services, or wellness centres ranging from many franchises which yet offer similar products or services.

4. Dependency on Franchisor

1. Another characteristic of this type of business model is the dependency on the franchisor for the established brand guidelines, marketing strategy, and operational procedures. This has the benefits of consistency, but it severely affects independence and flexibility to make business decisions.
2. For instance, a franchisee may want to include some adjustments in the menu that are relevant to their market yet find they are tied down by overall standard offerings laid out by the franchisor. They may also have to seek approval to do promotions campaigns, which leads to delays in execution.

Tips for Success in Low-Cost Franchising

Joining a low-cost franchise does take a strategic plan as well as an entrepreneurial attitude to maximize success with it. Here are some tips to make a blow-away franchise which will cost less than 2 lakhs:

1. Pick a High-Demand Niche: Choose a franchise that you have opted for in a sector with constant or ascending demand such as food and beverage, health services, or education. It narrows competition and increases profitability; the more niche it is, the better profitability.
2. Get Trained in Customer Service: Differentiation of the franchise from competitors can be achieved by focusing on customer service. Creating the best customer base would ensure the business again and make it possible for him to have many referrals.
3. Local Marketing Investments: Most of the above should be cost-effective when using traditional media methods, social networking, WhatsApp messaging local groups, participation in community events, and other events to promote your franchise. Hyper-local advertising tends to be more productive for small franchises.
4. Keeping Quality: The products or services you are offering should be of the exact quality that is expected from the franchisor’s brand. Quality retention helps in customer retention and increases brand loyalty.
5. Be Financially Disciplined: Follow the flow of expenses and maintain low operational costs. Do not spend on excess items, but invest in something for business growth. 
6. Go Local: Remember to adapt your offerings to fit specific needs identified in your target area. For example, you could have a few region-specific flavours, services, or promotions.

Check out this: 10 Most Popular Franchise Business in India for 2025

Future of Low-Cost Franchises in India

The business front of India is now changing fast with technology, an overgrowing entrepreneurship mentality, and the emergence of a middle-class economy.

Low-cost franchises will probably have a very potent role to play in this change because of the relative entry costs for aspiring entrepreneurs 

Leading Future Trends: Many of the inexpensive franchise systems adopt technology to improve operation efficiency app-based ordering, online payment systems, and digital marketing, which has cut further costs besides improving convenience for the customers.

Urbanization brings fewer Tier 2 and 3 cities: Increasingly, small cities and towns are emerging as the next areas of business development for low-cost franchises. Such areas typically have lower investment budgets but witness increased demand.

Going Green: Probably, there will be more and more franchises dealing with eco-friendly and sustainable products or services because there is an increase in the demand end of environmentally conscious consumers. 

Government Support: Initiatives such as, but not limited to, Making in India and Startup India will enable small businesses to gain financial and infrastructural support, creating a very conducive environment for franchise growth.

Sectoral Diversification: Not limited to food and retail, franchises are also sprouting in other sectors like healthcare and education. Thus, for an entrepreneur now, the variety of opportunities presents a broader horizon through which he can realize his dreams. 

The Indian economy is expected to grow steadily; thus, such franchises of less than 2 lakhs will always entice first-time business founders to try to establish themselves through little financial risks.

Conclusion

The low-cost franchises available under 2 lakhs are a wonderful opportunity for fresh entrepreneurs to enter the world of business without further investment.

These inexpensive options enable the user to utilize the capabilities of established brand names along with customer trust and the support of the franchisor.

Make proper investments innovate wherever needed, and start the journey into the vibrant world of franchising.

The journey will probably not be easy, but the rewards through the right franchise and with keeping should prove worth the effort.