Every franchise model in India,
explained for investors

FOFO, FOCO, Dealer, Management Contract — what each means for your money, your time, and your returns. Built from 234 brands across 14 industries.

FOFO

You run it

You invest AND operate. Hire staff, manage inventory, pay 4-15% royalty for the brand name.

FOCO

They run it

You invest, the brand operates. Passive income via revenue share. Lower margins than FOFO.

Dealer

Buy-sell margin

Buy at dealer price, sell at MRP. Auto, electronics, building materials. You run the showroom.

Mgmt Contract

Hotels only

You own the property. Hotel brand manages it for 2-5% of revenue.

Commission

Per-transaction

You provide space, platform handles customers. 15-30% per transaction. Labs, dark stores.

Distributor

Supply chain

Wholesale supply — buy from brand, sell to retailers. Warehouse + logistics.

Where the money is

Food & Beverage

51 brands · India's largest franchise category

Most outlets are FOFO — you run the kitchen, hire staff, manage daily ops. Royalties 4-8%. Margin-based FOFO exists too — Amul parlours don't charge royalty.

Typical Model

FOFO

Royalty

4-8%

Investment

₹5L-1.5Cr

Owner Involvement

Retail & FMCG

92 brands · Most diverse category

FOFO brands (Nike, Bata) pay 3-8% royalty. FOCO brands (Kalyan, Croma) are company-operated — you invest, they run it.

The FOCO trap: Kalyan needs ₹2Cr+ for FOCO. Revenue share but zero control.

Typical Model

Mixed

Royalty

0-18%

Investment

₹8L-5Cr

Owner Involvement

Education & Training

15 brands · Highest royalties in franchising

Preschools ~10%. IT training 20-25%. Kumon 45%. But low COGS + high tuition margins + sticky customers = 10% royalty on 60% gross still leaves 50%.

Typical Model

FOFO

Royalty

7-45%

Investment

₹5L-3.5Cr

Owner Involvement

Dealerships & energy

Automotive (4W)

34 brands · Dealer-operated, margin-based

Always dealer-operated. No royalty. Revenue = vehicle margin 3-8% + service + insurance + accessories.

Full 4W dealer economics →