OYO vs Treebo franchise India 2026: is the ₹95 lakh capex gap worth it?
OYO is 20.0× cheaper to get into — ₹5 L vs ₹1 Cr (about ₹95 lakh less). OYO runs the bigger network at 18000 vs 750 outlets. Treebo takes less off the top (18% royalty vs 25%).
01 What actually matters
Numbers that separate them on a 5-year horizon — not the dealer-pitch summary.
OYO has 24.0× more outlets than Treebo (18000 vs 750) — more brand recognition and supplier scale, but also denser intra-brand competition in saturated markets.
OYO charges 25% royalty on revenue — recurring, uncapped, and deducted before your own margin is calculated. Factor it into every pro-forma.
On pure entry capital, OYO is 20.0× cheaper than Treebo — ₹5 L vs ₹1 Cr. That gap compounds over a 5-year horizon because working capital and rent deposit scale with format size.
02 The numbers, visualised
Primary (flagship) format per brand. Smaller kiosk / express formats may have different economics.
Entry investment
Primary (flagship) franchise format per brand. Some brands also offer smaller kiosk / cloud-kitchen formats at lower capex — check the brand page for full format options.
Network scale — total outlets
Bigger networks mean more brand recognition and supplier scale; smaller ones mean less intra-brand competition in your territory.
Customer ratings Exact star rating + review volumePlus per-city Brand Health for both brands.Unlock with Pro →
Which brand's outlets are rated higher by customers, aggregated across locations. Exact star rating and review volume are in Brand Health.
Direction only — the underlying rating & review count are Pro data.
03 Side-by-side
Every verified data point. Green badge marks the more favourable value for a typical first-time operator.
| Metric | OYO | Treebo |
|---|---|---|
| Entry capex | ₹5 L ↓ Lower | ₹1 Cr |
| Royalty | 25% | 18% ↓ Lower |
| Gross margin | — | — |
| Min space (sqft) | 2000 ↓ Smaller | 12000 |
| Total outlets | 18000 ↑ Bigger | 750 |
| Franchise fee | — | — |
| Working capital | ₹2 L | ₹20 L |
Not sure if OYO or Treebo actually fits *you*?
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Compare OYO + Treebo + 2 Budget Hotels peers in the full tool
Open this pair plus FabHotels and Ginger Hotels (the next-largest Budget Hotels brands by network size) side-by-side in the full comparison tool. Add or swap brands to fit your decision.
04 Explore these brands in depth
Same data plus galleries, store-locator, margin economics, legal vault — free on every brand page.
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05 Frequently asked
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What is the cheapest Budget Hotels franchise in India?
The lowest-investment option here is OYO starting from ₹5 L. Remember this is the brand's minimum capex — your actual outlay includes a refundable security deposit, rent deposit (1–6 months), and working capital.
How do Budget Hotels franchises pay out — revenue share or fixed margin?
Most Indian Budget Hotels franchises pay the operator via product-margin on supply (cost-to-MRP spread) rather than explicit revenue share. Brands with 0% royalty usually recoup their cut inside supply pricing. Brands with stated royalty (commonly 3–10%) take it on top of product margin. Calculate effective take-home on both structures before you sign.
How many Budget Hotels franchise brands are available in India?
FRANticc's database lists 2 brands matching this comparison with verified investment data, store counts, and format details. Several more are covered across our full directory. Every data point cites its public source.
What are the hidden costs in Budget Hotels franchises?
Beyond the advertised capex, factor in: refundable security deposit (₹1–5L), rent deposit (1–6 months of rent), working capital for inventory and salaries (typically ₹5–20L for first 3 months), signage and interior fit-out (often 25–40% of total setup), and ongoing royalty or supply-chain margins. FRANticc separates "at-risk capital" from "refundable capital" on every brand page so you see the real exposure.