Restaurant Franchise In India: How To Start And How Much Does It Cost?

‍Restaurant Franchise In India: How To Start And How Much Does It Cost?

Chicken tandoori

A tried-and-tested, low-risk way to get started in the restaurant industry is through franchising. Alternatively, franchising is a good choice if you own a successful restaurant and want to grow it but don’t have the time or money to build the brand. Tandooriwala is a restaurant franchise in India with low investment, offering opportunities to new business owners to grow and expand. 


What is a Restaurant Franchise?


A franchise restaurant is one where you can purchase the right to use the establishment’s name in exchange for a royalty charge. The “franchisor” is the business that sells you the license to use its trademark. The term “franchisee” refers to you as purchasing the rights to use the restaurant’s brand name. These rights to use the brand name are usually granted to the franchisee for a designated area. The term “franchise” refers to the actual establishment.


Benefits and Drawbacks of Starting a Franchise Restaurant


You are managing another person’s brand when you operate a franchise of restaurants. You lack the freedom to make operational choices. Operational procedures are predetermined, and following the brand guidelines is mandated by contract. 


One essential feature of a franchise restaurant is strict control over the operating procedures. Nonetheless, the franchisor advises and assists franchise restaurants with staff training, supplies, etc. Running a franchise restaurant requires work, dedication, and managerial abilities. The brand expects you to produce consistently high-quality outcomes. To ensure that the brand’s reputation is upheld and all requirements are met, the brand owner also regularly evaluates the company. 


The following overview of the benefits and drawbacks of starting a restaurant franchise.



  • Easier to manage, particularly for novice and unskilled restaurateurs.
  • Reduced risk because a successful brand, a well-established client base, and a tested business plan support the franchise. You can also choose a restaurant franchise in India with low investment.
  • The franchisor offers assistance with marketing, equipment, supplies, and staff training. 



  • High expense of acquiring a franchise.
  • A weekly or monthly royalty charge must be paid. 
  • minimal or non-existent operational control. It can be unpleasant when there is little room for creativity and decision-making. 


How is a Franchise Better than an Independent Restaurant?


An independent restaurant differs from a franchise because its owner(s) is not an independent franchise network. The restaurant owner has complete control over all aspects of the business, including decision-making, and is fully responsible for the earnings. 


The location, menu, and every other facet of the restaurant’s operations are entirely up to the proprietor. 


Nonetheless, the primary advantage of operating a franchise restaurant over an independent one is the decreased chance of failure.  Starting with no brand value, the independent restaurant has an unproven business plan. 


Managing and directing daily company operations necessitates significant time and energy expenditures. As it lacks tried-and-tested operational procedures, an independent restaurant’s unproven business model also suffers from substantial operational inefficiencies.


What are the Steps Needed to Start a Restaurant Franchise?


Selecting the franchise plan that best fits your business is the first step towards starting a franchise in India. Among the several restaurant models are:


  • Master Franchising. Under this structure, a master franchisee assumes responsibility for the franchising operations for a particular region from the restaurant owner, the master franchisor. After that, the franchisee assumes the role of franchisor in that area. 


  • Single-Unit Franchising (Direct Franchising). This is the owner-operator model, in which you oversee the restaurant’s day-to-day operations in addition to being its owner. In India, this is the most popular franchising model. 


  • Multi-Unit Franchising. The franchisee purchases numerous franchises from the franchisor under this particular franchising arrangement. The franchisee oversees operations for each of these locations and guarantees commercial expansion. 


  • Company-Owned Franchising. In this instance, the parent company opens a representative office within the nation. After that, it collaborates with the franchisee to create the brand, attract clients, and launch the company. 


  • Area Development Franchising. Multi-unit franchising and this franchising model are comparable. The main distinction is that the franchisee has the chance to increase brand awareness swiftly, and more units are dispersed throughout a wider area. 


How Much Does it Cost?


The next stage in starting a restaurant franchise is determining your budget, the return on investment, and the time needed to break even and turn a profit after selecting the franchising model. Among the several financial arrangements you must make are:


  • Startup fees: To be paid to the franchisor for the business to begin; this covers the price of leasing or buying real estate that satisfies the franchisor’s requirements, buying equipment, and paying licensing and permit fees.


  • Initial franchise fee: This is the amount that must be paid to the franchisor to use its brand to run a franchise.


  • Royalty fees: The franchisor receives this ongoing payment from the business’s earnings. This charge usually ranges from 4 to 6 percent of the monthly income.


  • Additional costs: These consist of payroll, advertising fund contributions, operational expenses, and so on. 


  • Personal finances: Most franchisors also impose requirements on franchisees, such as specific net worth and liquid asset requirements. 

The last steps in starting a restaurant franchise are finding the model that best suits your needs and analysing the market. Examine the local economics, the geography, the competition, and the dietary habits.


Wrapping Up


We at Tandooriwala provide the most logical, flexible, and successful food franchising possibilities in the Indian market. The Tandooriwala franchise product range is something we are proud of. Even though we are a relatively new player in the worldwide franchise landscape, becoming a part of our team means joining a family of dedicated professionals with years of national platform experience in hotel and restaurant services. We take great satisfaction in helping the communities that our most reputable restaurant franchises serve and the franchisees themselves.