Franchise Guide
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Best Franchises Under ₹10 Lakh in India 2026
₹10 lakh opens up a meaningfully larger set of franchise options — from full-format Amul outlets and salon chains to the entry tier of branded QSR. This guide covers five franchises that genuinely fit within this budget, what they realistically return, and which government schemes can help you close the funding gap.
What Changes at the ₹10L Tier
At ₹10L you move from purely asset-light service models into branded retail and food service. The key addition at this tier is food kiosks (Wow Momo), which carry higher return potential but also higher operational complexity and location dependency.
₹25K–₹80K/mo
Net income range
18–30 months
Break-even typical
50–300 sq ft
Space needed
For business ideas beyond franchises at this budget, see our business ideas under ₹10 lakh guide.
Top 5 Franchises Under ₹10 Lakh
DTDC Courier Franchise
₹50K – ₹2LFormat: Service outlet — courier booking & delivery
Best for: Anyone with a small shop in a residential or commercial area
Pros
- +Lowest entry cost in the logistics sector
- +Established brand — 12,000+ outlets across India
- +Can be run as a second income alongside another business
- +No inventory risk — pure service model
Cons
- −Volume-dependent income — slow areas earn very little
- −Margin pressure from online aggregators (Shiprocket, Delhivery)
- −Income cap without territory expansion
Amul Preferred Outlet
₹2L – ₹6LFormat: Retail — dairy, ice cream, packaged foods (full format)
Best for: Owners of a 100–300 sq ft shop in a residential area or market
Pros
- +Zero royalty and zero franchise fee — unique in India
- +India's most trusted dairy brand needs no advertising
- +Full Amul product range including high-margin ice cream and ghee
- +Year-round demand — recession-proof FMCG
Cons
- −Thin per-unit margins require high daily throughput
- −Cold storage equipment adds to investment
- −Nearby Amul distributors can create local pricing pressure
Wow Momo Kiosk
₹10L – ₹15LFormat: QSR kiosk — food courts, malls, college campuses
Best for: Entrepreneurs with a confirmed high-footfall location in North or East India
Pros
- +Tiger Global-backed brand with 700+ outlets and strong recognition
- +Listed on Swiggy and Zomato for delivery revenue alongside dine-in
- +Compact format (100–150 sq ft) — low rent requirement
- +Strong appeal in cities with large North/East Indian population
Cons
- −₹10L is borderline — budget ₹12L–₹15L all-in with working capital
- −Royalty 6–8% + marketing 2% cuts into margins significantly
- −Weaker performance in South India outside major metros
- −Mandatory supply chain sourcing — cannot source momos independently
Jawed Habib Hair & Beauty (Basic Salon)
₹5L – ₹8LFormat: Service outlet — unisex hair salon
Best for: Entrepreneurs in Tier 2/3 cities with salon management experience or a reliable salon manager
Pros
- +Established pan-India brand with strong recognition in smaller cities
- +Recurring customer base — haircuts are monthly repeat visits
- +Relatively low royalty compared to QSR franchises
- +Lower investment than most salon franchise chains
Cons
- −Staff quality and retention is the biggest operational challenge
- −Service quality directly determines customer retention — hard to standardise
- −Royalty and brand fund still apply on top of operating costs
Kidzee / EuroKids Pre-School (Home-Based)
₹5L – ₹10LFormat: Education — pre-school franchise run from a home or small rented space
Best for: Individuals (especially women) with space, community trust, and interest in early education
Pros
- +Education sector has strong parental demand and low seasonality
- +Home-based format keeps rent costs near zero
- +Established curriculum and brand removes content development burden
- +Typical morning-hours model — suits caregivers with family commitments
Cons
- −Revenue ramp-up is slow — takes one to two admission cycles to reach capacity
- −Regulatory compliance (fire safety, health norms) required for CBSE/state recognition
- −High competition from local playschools in some neighbourhoods
Government Schemes to Fund Your Franchise
Mudra Tarun Loan — up to ₹10 Lakh
The Mudra Tarun tier (₹5L–₹10L) covers this budget tier almost entirely. Collateral-free, available at all public sector and many private banks. Interest rates are typically 10–13% p.a. You need Udyam registration, a project report, and 6 months of bank statements. Disbursement typically takes 3–6 weeks after application.
Mudra loan complete guide →PMEGP — Capital Subsidy for Service and Retail
PMEGP provides a 15–25% non-repayable subsidy on project cost for service and retail sector businesses. On a ₹8L franchise setup, a 20% subsidy reduces your repayable borrowing by ₹1.6L. Apply through your District Industries Centre (DIC) or KVIC with a project report. This is a grant component — it does not need to be repaid.
PMEGP application walkthrough →Top cities for franchise businesses under ₹10L
Frequently Asked Questions
What is the best franchise to start under ₹10 lakh in India in 2026?
There is no single best answer — the right franchise depends on your city, location type, and skills. DTDC is best for low-risk entry with minimal space. Amul Preferred Outlet suits residential areas with steady footfall. A Jawed Habib basic salon suits anyone with salon management experience in a mid-size city. Wow Momo Kiosk suits high-footfall food courts in North/East Indian cities. Match the franchise model to your specific location and operational strengths.
Can I get a bank loan for a franchise under ₹10 lakh?
Yes. The Mudra Kishor loan covers ₹50,000 to ₹5 lakh; Mudra Tarun covers ₹5 lakh to ₹10 lakh. Both are collateral-free for micro and small businesses. For a ₹10L franchise, a Mudra Tarun loan can cover a significant portion. You will need Udyam registration, 6 months of bank statements, and a project report. PMEGP can additionally reduce your net investment by 15–25% via a capital subsidy.
Is the Wow Momo Kiosk a good franchise under ₹10 lakh?
A Wow Momo Kiosk (₹10L–₹15L all-in) is borderline at the ₹10L mark — feasible if you have a lower-rent food court or campus location. It suits entrepreneurs in North and East India where momo culture is strong. Royalty is 6–8% monthly plus 2% marketing fee, so location quality is critical to profitability. Do not attempt a mall food court kiosk on ₹10L without a 3-month working capital buffer.
How much can I earn per month from a Jawed Habib franchise?
A basic Jawed Habib salon in a Tier 2 or Tier 3 city with 2–3 staff can generate ₹1.5L–₹3L monthly gross revenue. After royalty (typically 5–8%), staff wages, rent, and consumables, net income is ₹25,000–₹60,000/month for an owner-operator. The brand's strong recognition in smaller cities drives walk-in traffic without significant marketing spend.
What are the hidden costs I should budget for beyond the listed franchise fee?
At this investment tier, common hidden costs include: rental security deposit (3–6 months rent, not included in most franchise investment figures), civil renovation if the space requires structural changes, working capital for the first 2–3 months of operations before revenue stabilises, GST registration and accounting setup (₹5,000–₹15,000), and staff recruitment and training costs. Budget a ₹1.5L–₹2.5L buffer over the stated investment for these.