Written By: Gouri Ghosh

Retail franchises are expanding fast in India. Increasing incomes, quick urbanisation, and changing lifestyles are compelling individuals to opt for organised retail, which is increasing demand for reliable franchise brands.

India's economic growth, growing middle class, embracing digital payments, and desire for branded experiences are driving robust retail opportunities. Tier-2 and Tier-3 cities, too, will become hotspots for new franchise stores by 2026.

If you are an entrepreneur or investor looking to invest in a retail franchise in India in 2026, this guide will help you explore top brands, understand investment costs, and know what to consider before taking the plunge.

How To Choose the Best Retail Franchises in India 2026?

If you're considering purchasing a franchise, you want to ensure that your investment is worthwhile. That's why we emphasized the most important considerations that truly matter to franchise owners:

• Market size & growth: Searched for brands with solid potential and lots of opportunity to expand, so you can grow alongside them.
• Profitability & ROI: Only those franchises that provide healthy margins and compelling returns were included. Your money should earn its keep for you.
• Brand recognition: Familiar, trusted brands customers already love and recognize are more easily sold, giving you a head start.
• Franchise model: Straightforward information on investment, fees, royalties, and support are important. You don't want a system that confuses you, but rather one that makes you succeed.
• Scalability: Targeting brands that can scale up in metros, Tier-2, and Tier-3 cities, thereby enabling you to scale your business in the future.
• Consumer alignment: Those products and services that are aligned with what consumers need today, convenience, health, sustainability, and digital choice sell quicker and remain relevant.

Selecting a franchise is a huge decision, but bearing these points in mind may assist you in selecting a business that is profitable, scalable, and future-ready.

Top 10 Retail Franchises in India 2026

Reliance Retail (Convenience & Grocery)

• Why top: India's largest retailer with multiple formats—Reliance Fresh, Trends, Smart Bazaar.
• Franchise Model: Investment ~₹15–30 lakh based on store size. Franchise fee & royalty competitive.
• Presence: 18,000+ stores, rapidly expanding to smaller towns.
• Pros: Strong supply chain, brand loyalty, digital integration.
• Challenges: High competition and high real estate prices in metros.

Zudio (Fashion & Apparel)

• Why Top: Reliance Retail-owned Zudio is a fast-growing fashion brand that retails affordable and fashionable clothing.
• Franchise Model: Investment is between ₹20–30 lakh, with a simple franchise model and minimal royalty charges.
• Presence: More than 200 stores in India, with plans for major expansion.
• Pros: High brand recall, high traffic, and steady demand for affordable fashion.
• Challenges: competition in the fast-fashion segment.

Lenskart (Eyewear Retail)

• Why Top: Lenskart is a top eyewear brand in India, with a strong portfolio of fashionable and affordable glasses.
• Franchise Model: The investment is approximately ₹15–20 lakh, with a scalable franchise model and assistance in the setup and operations of stores.
• Presence: More than 1,000 stores across the country, with a robust online presence.
• Pros: Increasing demand for glasses, good omnichannel presence, and integration of innovative technology.
• Challenges: Organized and unorganized competition in the eyewear market.

Nykaa (Beauty & Wellness Retail)

• Why top: Strong online-to-offline brand, massive female customer base.
• Franchise Model: Investment ~₹30–50 lakh per outlet.
• Presence: 145+ physical stores, planning to expand rapidly.
• Pros: High margins, omnichannel strength.
• Challenges: Global beauty retail competition.

Bata (Footwear Retail)

• Why top: Legacy footwear brand trusted across generations.
• Franchise Model: Investment: ~₹25–35 lakh. Royalty ~8%.
• Presence: 2,000+ stores in India.
• Pros: Pan-India brand recall, consistent footfalls.
• Challenges: New-age footwear brands competition.

Chumbak (Lifestyle & Home Décor)

• Why Top: Chumbak has exceptional and colorful lifestyle merchandise, such as home decor, clothing, and accessories, which reflect the spirit of Indian culture.
• Franchise Model: Investment is between ₹25–40 lakh, with emphasis on innovative retail ideas and robust brand identity.
• Presence: Outlets in key cities, with expansion to Tier-2 and Tier-3 cities planned.
• Pros: Unique product lines, robust brand attractant, and expanding market for lifestyle and home fashion products.
• Challenges: Specialized market niche with identifiable customer tastes.

Carrefour (Hypermarket Retail)

• Why top: International retailing giant entering India again in 2025.
• Franchise Model: Master franchisee with Apparel Group. Outfit investment ₹1 crore+.
• Presence: Opening of first stores in NCR, followed by countrywide launch.
• Pros: International expertise, robust supply chain.
• Challenges: Competition with Reliance & DMart.

ASICS (Sportswear Retail)

• Why top: Upcoming demand for high-end sportswear.
• Franchise Model: Investment ~₹40–60 lakh. Small to medium-sized outlets.
• Presence: 125 stores (largely franchisee-owned), adding month on month.
• Pros: Robust global brand, increasing fitness culture.
• Challenges: Competition from Adidas, Nike, Puma.

Lakme (Retail / Salons of Beauty & Cosmetics)

•  Why top: India's numero uno beauty brand with both product retail and salon franchise models.
•  Franchise Model: Investment ~₹50 lakh per store including interiors and inventory. Franchise fee and royalty charges.
•  Presence: 400+ Lakme salons and retail outlets in metros and Tier-1 cities.
•  Pros: High margins, repeat customers, strong brand equity.
• Challenges: Tough competition from international cosmetic brands and shifting fashion trends.

FabIndia (Ethnic Fashion & Lifestyle Retail)

• Why top: Elite brand with the reputation of handcrafted ethnic clothing, home furnishings, and eco-friendly products.
•  Franchise Model: Investment ranges generally ₹50 lakh–₹1 crore based on size and location of the store. Franchise fee applies.
•  Presence: 350+ stores, with expansion to malls and high streets across the country.
•  Pros: Differential positioning, increasing demand for sustainable and ethnic offerings.
• Challenges: Premium pricing restricts mass appeal, large-format stores necessitated.

Emerging Trends in Retail Franchise India 2026

Omnichannel Retail (Online + Offline Stores)

• Merging physical retail outlets with online e-commerce websites is the new trend in India.
• India's e-retail market will reach $140 billion by 2026 at a growth rate of 20–25% CAGR.
• Omnichannel retail aids franchise players in expanding customer base, enhancing sales, and enhancing brand presence.

Contactless Payments, UPI & Digital Wallets

• Cashless payment is becoming the major component of new retail.
• The digital payment market is expanding at a 16% CAGR. 
• Integrating contactless payments into your franchise increases customer convenience, accelerates transactions, and lowers operational expenses. 

Sustainable Retail & Eco-Friendly Packaging 

• Consumers are increasingly opting for sustainable brands. 
• Sustainable investment in India can hit $125 billion in 2026, citing robust consumer demand. 
• Eco-friendly practices, recyclable packages, and green retail strategies can build brand loyalty and engage conscious shoppers. 

Health & Organic Products

• Organic, natural, and health products are the demanded items.
• The Indian market for organic food is expected to reach $2.8 billion by 2026 at a growth rate of 16.6% CAGR.
• Health and wellness product franchises can bank on this trend for greater sales and customer return.

Smaller Retail Formats: Kiosks & Pop-Up Store

• Kiosks, pop-ups, and small stores in malls and airports save capital expenditure while exposing products intensively.
• These formats allow franchise owners to test new markets and products efficiently.
• Small-format retail improves convenience for customers and boosts footfall in high-traffic areas.

AI & Analytics for Inventory & Customer Personalization

• Artificial intelligence helps optimize inventory, pricing, marketing, and personalized offers.
• AI adoption in India could add $500–600 billion to GDP by 2035, showing its massive potential.
• Franchises using AI can improve customer experience, increase loyalty, and enhance operational efficiency.

Region-Wise Opportunities

Conclusion

The retail franchises industry in India is booming, and 2026 has much more to offer entrepreneurs and investors. With increasing incomes, digital penetration, and escalating consumer demand, both metros and Tier-2/Tier-3 cities are promising markets for franchise growth.

By emphasizing trends such as omnichannel retailing, contactless payments, sustainability, health products, smaller formats, and AI-powered personalization, you can select a franchise that is profitable, scalable, and future-proof. Knowing the costs of investments, ROI potential, and regional opportunities will allow you to make more informed decisions and optimize returns.

If you're investing in retail franchises, maintaining alignment with these trends and selecting the right brand can position you for long-term success.

FAQs

1. What are the top retail franchises investments in India for 2026?

Some of the top contenders are Reliance Retail, DMart, Decathlon, Nykaa, Bata, Big Bazaar, Carrefour, ASICS, Lakme, and FabIndia. These are considered to have robust market presence, growth prospects, and desirable ROI.

1. What is the franchise with the best ROI in India currently?

Franchises such as Nykaa (beauty and wellness), DMart (supermarkets), and Bata (footwear) generally offer higher ROI through effective brand recognition, loyal customers, and optimized operations.

1. What are the future franchise opportunities in Tier-2 cities in India?

Tier-2 cities are expanding rapidly and hence are perfect for supermarkets, convenience stores, health & organic product stores, kiosks, and pop-up shops. Players like Reliance Retail, Big Bazaar, and smaller health/organic chains are growing within these markets.

1. Tell me profitable retail franchises opportunities for 2026.

• Omnichannel grocery and convenience stores
• Health & organic food stores
• Beauty & wellness outlets
• Sports and fitness retail
• Footwear and apparel stores
• Cafés, kiosks, and pop-up formats

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.