Buy a franchise
Costs & investment
The franchise fee is rarely the whole story. Total capital is fee + setup + stock + licences + months of oxygen.
All figures are indicative
Ranges below are educational illustrations only. Actual costs vary by brand, city, format, and year. Always obtain a written estimate and validate with existing franchisees.
Where the money goes
| Component | Typical nature | Illustrative range |
|---|---|---|
| Initial franchise fee | One-time, often non-refundable | ₹2 lakh – ₹50 lakh+ |
| Security deposit | Sometimes refundable | ₹1 lakh – ₹10 lakh+ |
| Interior / fit-out | Brand-spec design & civil work | ₹5 lakh – ₹1 crore+ |
| Equipment & furniture | Kitchen, POS, fixtures | ₹2 lakh – ₹30 lakh+ |
| Opening stock | Inventory & consumables | Varies by sector |
| Working capital | Ops before break-even | Often 3–12 months fixed costs |
| Royalty | Ongoing % of sales or fixed | Often mid-single to low-double digit % |
| Marketing fund | Brand / co-op advertising | Often 1–3%+ of sales |
Illustrative sector bands
| Sector | Illustrative total investment |
|---|---|
| Food & beverage | ₹10 lakh – ₹1.5 crore+ |
| Retail | ₹15 lakh – ₹2 crore+ |
| Education & skills | ₹8 lakh – ₹75 lakh+ |
| Health, beauty & wellness | ₹12 lakh – ₹1 crore+ |
Costs people under-model
- Rent escalations and mall CAM charges
- Staff attrition and re-training
- Delivery platform commissions (F&B)
- Mandatory tech / software fees
- Periodic brand-mandated refurbishments
Rule of thumb
If paying the franchise fee empties your buffer, you are not ready — you still need setup capital and operating runway.
Sense-check your budget with Vijay
Free call — total investment, working capital, and whether a sector fits your range.
Educational only. Full disclaimer.