Before investing in a franchise, know exactly how long it will take to recover your money. Enter three numbers and get your payback period, annual ROI, and 3-year profit projection.
Franchise Break-Even Benchmarks — India 2026
Franchise Type
Typical Investment
Avg. Break-Even
Annual ROI
Tea / Chai Kiosk
₹2L – ₹5L
10 – 14 months
85 – 120%
Preschool / Education
₹5L – ₹15L
18 – 24 months
40 – 65%
QSR Restaurant
₹10L – ₹30L
24 – 36 months
30 – 50%
Pharmacy
₹8L – ₹20L
18 – 30 months
35 – 60%
Gym / Fitness Centre
₹20L – ₹60L
24 – 40 months
25 – 45%
Automobile Service
₹25L – ₹80L
30 – 48 months
20 – 40%
Franchise ROI FAQs
A franchise ROI above 40% annually is considered strong in India. Tea and food kiosks often achieve 80–120% annual ROI. Larger investments like gyms and restaurants typically deliver 25–50% annual ROI. Compare to FD rates (~7%) and equity markets (~12–15%) for context.
Our calculator uses total initial investment which should include franchise fees, fit-out costs, security deposits, equipment, and initial inventory. Monthly expenses (royalty, rent, salaries) should be deducted from your monthly revenue before entering the net profit margin.
Key strategies: (1) Choose a high-footfall location even if rent is higher. (2) Opt for smaller format (kiosk vs. full store). (3) Maximise delivery/online revenue streams. (4) Negotiate lower security deposit. (5) Start with the franchisor's cheapest model to test the market before expanding.
