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Best Franchises To Launch in Tier 2 Cities

Best franchises to launch in Tier 2 cities

When seen from a global perspective, the Indian market is enormous and mostly untapped. New urban cities are emerging, and with them come new middle classes and a new market for goods and services. India has been a popular investment location because of its largely untapped market. Franchisee firms have annual growth of between 30 and 35 percent. Franchise-based entrepreneurship helps to drive middle-class aspirations in this capitalist economy while lowering risks of failure and growing client bases.

Demand for goods and services that typically operate in major metropolitan areas is causing Tier 2 and Tier 3 cities to expand quickly into global hubs. Due to the increase in demand, tier 2 cities now have the option of franchising, placing them in the franchise category. Smaller cities may be the most lucrative and high-return investment market places for franchisees, according to expert study of market trends. These tier 2 and tier 3 cities serve as excellent echo chambers for the expansion of businesses.

According to Ernst and Young, Indians would spend a total of 6 trillion US dollars by 2025. Due to its expanding economy and sizable population, India now has the third-largest retail industry, and the tendencies are continuing to grow. Companies are interested in expanding in tier 2 cities like Ludhiana, Aurangabad, Jaipur, and other locations because metropolitan areas are already overcrowded with major global centres.
Top franchises that might profit most from being in tier two cities include:

1. Shemrock

Shemrock Dwarka, Mahavir Enclave, Mahavir Enclave, Dwarka - Hello Parent

The client base in Tier 2 cities is overwhelmingly middle class and thriving. As a result, the moral imperative for investing in and emphasising education lies at the core of both. According to surveys, these cities would likely increase their investments in this area by 25% to 30% by 2025. Awarded school chain Shemrock has more than 550 locations worldwide, including those in our neighbours’ nations. The school actively participates in a child’s holistic development from day one and uses cutting-edge methods to educate them a wide range of subjects. Since its founding in 1989, the school has provided young children with a fun and colourful education. The initial expenditure needed to create a Shemrock playschool ranges from 16 to 18 lakhs, and the school’s opening space needs to be around 2000 square feet. 15% of the net sales is required as royalty by the corporation.

2. Yum Rolls


A cultural tradition for any nighttime outing in the city is to eat street food. Yum Rolls offers delicious and satisfying rolls that will satisfy the appetites and taste buds of both young and elderly at affordable costs. This aspect of Yum Rolls’ product would instantly make it popular in Tier 2 cities. In a few years, this might make it into the urban lads’ mythology. The brand’s USP is its extensive menu, which features mouthwatering Kathi rolls with regional flavours. The reasonable prices and wholesome product selections make it popular. 200 square feet of space are needed and an initial investment of 13 to 15 lakhs is wanted to build a yum roll business. The corporation is requesting a 6% royalties from third parties.

3. Lifecare


Poor medical facilities are sometimes lacking in small cities. Given that healthcare expenses are not regarded as expenses and that Lifecare would close the gap between high-quality healthcare and small communities, franchisees would have a tremendous opportunity to develop their centres in tier 2 cities. Since its establishment in Mumbai, the pathology lab has gained a reputation in major cities and has served as a dependable partner for both doctors and patients. World-class equipment and talented pathologists guarantee and ensure the quality and safety of your pathological examinations. They are the top pathology labs in India because of their methods, creativity, and extreme care with which they treat patients. Entrepreneurs with a heart for helping others and a background in medicine would be advised to invest in the Lifecare franchisee. 2000–3000 square feet of space are needed, and an initial investment of 1-1.5 crores is requested to launch the lab.

It is important for young entrepreneurs to establish franchise businesses to offset the greater risks because the markets in tier 2 and tier 3 cities have begun to flourish and are the ideal spot to start investing. There might be some difficulties having the paperwork completed at first, so efforts should be focused more on marketing and fully using the brand’s image following that stage.

This blog post has highlighted a few franchises; the entrepreneur must conduct adequate study, choose a niche market in which to start a franchise, and then choose the best franchise that supports its franchises.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

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