How Much Does It Cost to Open a Fast Food Franchise in India?

India’s fast food industry is exploding — fueled by urban lifestyles, rising disposable incomes, and a culture that increasingly prefers convenience without compromising on taste. Whether it’s a quick burger, a comforting biryani, or a trending momo brand, fast food franchises are becoming the go-to model for aspiring entrepreneurs eager to tap into this high-growth sector.

But while the market potential is undeniable, many first-time investors often underestimate the range of costs involved. From franchise fees and equipment to rent, royalties, and marketing — every decision influences your upfront investment and ongoing profitability.

This blog breaks down the real cost of opening a fast food franchise in India, including brand comparisons, cost levers to watch, and how new-age models like Kouzina are making entry into this space more accessible than ever. If you’re planning to invest in a franchise in 2025 or beyond, this guide will help you plan smarter and choose better.

TL;DR (Key Takeaways)

• Total investment ranges between ₹6–20 lakhs, depending on brand reputation, outlet type (dine-in vs. cloud kitchen), and location.
• Franchise fees can range from ₹2 to ₹20 lakhs, while royalty charges (5%–10%) eat into monthly revenues — unless you opt for low-royalty models like Kouzina.
• Hidden costs like interior setup, local licenses, and staff training can significantly inflate your startup costs if not planned well.
• Kouzina offers a lean-entry model (starting at ₹6 lakhs) with built-in support, brand visibility, and operational SOPs — a faster and more affordable way to enter the market.
• Break-even timelines vary widely; while legacy brands can take 2–3 years, streamlined models like Kouzina target ROI within 18–24 months through cloud-first scalability.

Why Invest in a Fast Food Franchise?

India’s fast food market is not just growing — it’s transforming. With shifting dining habits, tech-enabled delivery, and rising consumer demand for affordability and speed, fast food has evolved from an occasional indulgence into an everyday convenience. For entrepreneurs, this opens the door to a proven, scalable business model backed by strong brand recall and operational support.

Here’s why investing in a fast food franchise in 2025 is a strategically sound move:

Established Business Model: Franchises eliminate the trial-and-error phase of starting from scratch. You operate within a tested framework — from menu curation to supply chain and marketing — giving you faster time-to-market and reduced risk.

Built-in Brand Awareness: Customers are more likely to trust a name they already know. This gives franchisees a ready-made customer base, better visibility on delivery apps, and an edge in crowded markets.

Rising Urban Demand: Fast food is no longer limited to metros. Tier 2 and 3 cities are showing strong growth as lifestyles get busier and food delivery gains traction across India.

Centralized Support: From initial setup and staff training to marketing assistance and supply chain logistics, most franchises provide end-to-end support, which helps maintain consistency and efficiency.

Room for Expansion: Once established, franchises can easily scale. Multi-brand kitchens or multi-outlet growth strategies allow franchisees to multiply returns without multiplying risk.

Whether you’re looking to build a standalone outlet or tap into a cloud-kitchen ecosystem, fast food remains one of the most resilient and adaptive sectors in India’s F&B space.

Also Read: Steps to Start a Fast Food Franchise in India

Factors Influencing the Cost of a Fast Food Franchise in India

The cost of opening a fast food franchise in India can vary widely depending on brand, location, format (dine-in vs. delivery-only), and operational scale. While entry-level investment might start as low as ₹4–5 lakhs, comprehensive setups with high footfall potential can demand upwards of ₹20 lakhs. Understanding the key cost components will help you budget smartly and avoid surprises down the line.

Here are the major factors that shape your total franchise investment:

1. Franchise Fee
This one-time fee grants you the rights to operate under the franchisor’s brand. It typically ranges from ₹2 lakhs to ₹20 lakhs, depending on the popularity and demand of the brand. Premium or international brands tend to charge higher franchise fees.

Also Read: Most Profitable Fast Food Franchises of 2024

2. Setup Costs
This includes equipment, interior fit-outs, branding, and kitchen infrastructure.

• Kitchen Equipment: ₹2 – ₹5 lakhs depending on the menu and scale.
• Interiors & Furniture: ₹3 – ₹10 lakhs, depending on location and theme.
• Branding & Signage: ₹50,000 – ₹2 lakhs for menu boards, lighting, exterior signs, etc.

3. Location & Rent
Rent is one of the most variable components — urban high-footfall areas come at a premium.

• Tier 1 city outlet: ₹50,000 to ₹1 lakh+ per month
• Tier 2 or residential cloud kitchens: ₹15,000 to ₹40,000 per month

4. Royalty & Commission Fees
Most franchises charge royalties (5–10% of gross sales) and marketing contributions. However, newer models like Kouzina offer a no-royalty or fixed-commission structure, allowing you to retain more profit (Kouzina currently operates on a 12% royalty model).

5. Operational Expenses
Recurring costs include salaries, utilities, restocking inventory, and maintenance.

• Staff Salaries: ₹10,000 – ₹30,000 per staff/month
• Utilities: ₹5,000 – ₹20,000/month
• Inventory: ₹1 – ₹2 lakhs for initial stock; monthly restocking depends on sales

6. Marketing & Promotions
To drive discovery on delivery platforms and offline channels, plan for a marketing budget of ₹50,000 – ₹2 lakhs/month. This includes local SEO, app promotions, discounts, flyers, influencer outreach, etc.

Understanding these cost components gives you a clear picture of where your money goes — and where smart choices can improve your margins. Choosing a franchise that bundles infrastructure, marketing, and training can often reduce your total investment significantly.

Kouzina: The Affordable Fast Food Franchise Option

Out of all the fast-food chains in India, Kouzina is one of the most reasonably priced and profitable ones. Aspiring franchisees wishing to enter the food sector will find Kouzina the perfect fit for them for the following reasons:

• Low Investment: Starting at about ₹4.25 lakh + GST, Kouzina provides franchise prospects that are very easily accessible for businesses with tighter budgets. This cheap entrance fee lets people into the fast-food industry free from the usual financial load associated with franchising. (Starts from 6 lacs onwards to 16 lacs)
• No Royalty Fees: Kouzina runs on a no-royalty, no-profit-sharing business unlike many other fast-food companies. In a competitive market, this means franchisees keep 100% of their earnings, which enables greater margins and more pricing flexibility—two major benefits. ( We charge a 12% royalty )
• Comprehensive Package: The Kouzina franchise package is meant to save franchisee extra expenses. It covers all the required commencing equipment, including kitchen appliances, starter kits, branding materials, as well as training. This thorough assistance guarantees franchisees are ready to open and run their stores effectively.
• Proven Success: Kouzina has shown its scalability and great competitive edge with more than 290 stores spread across more than 100 Indian cities. Its excellent business approach is shown by its great presence and popularity among consumers, therefore giving franchisees a strong basis for expansion and profitability.
• Quick ROI: Kouzina guarantees a return on investment (ROI) of 12-14 months due to its efficient operations, minimal overhead expenses, and loyal client base. One of the main advantages of working with Kouzina is this fast turnaround, which lets franchisees start making money much earlier than with other business models. (18 to 24 months)

With complete assistance and an established business plan that promises long-term success in the expanding food sector, Kouzina presents an overall distinctive opportunity for entrepreneurs looking for an affordable, high-return fast food franchise.

Also Read: Top Vegetarian Fast Food Franchise Opportunities in India

Becoming a Franchise Partner: How to Get Started with Kouzina?

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Here's a basic, all-inclusive guide if you're ready to launch your fast-food business with Kouzina’s cloud kitchen concept:

• Reach Out: To find more about franchise prospects, get in touch with Kouzina via their customer service or official website.
• Submit an Application: Fill up the franchise application form with the required information about your history and investment capability.
• Initial Consultation: Meet the Kouzina team to go over terms, investment, and expectations; furthermore, ask questions.
• Select a Location: Work with Kouzina's professionals to select a high-traffic area offering the highest possible chance for success.
• Training and Setup: Attend training programs covering all operational elements. Get direction on opening your business, including branding and kitchen tools.
• Launch: Open your franchise with complete marketing and operational assistance from Kouzina to guarantee a perfect launch and consumer appeal.

Conclusion

Running a fast food franchise is an exciting and rewarding option, particularly in a rising country such as India. Driven by urbanisation and the need for quick meal alternatives, the fast-food industry is growing quickly and presents a perfect opportunity for businesses to profit on this trend. Rather than launching a company from nothing, franchises provide an established business plan, brand awareness, and operational help, therefore lowering the risk.

Kouzina stands out among the best franchise alternatives because of its low cost, no royalties, and rapid return on investment. With a complete package including marketing, training, and continuous support, Kouzina helps franchisees create a profitable food company with no initial outlay. Kouzina provides a solid foundation for long-term success as the need for fast food keeps rising, hence it is a perfect alternative for businesses wishing to join the food sector in 2025 and ahead.

All set to begin your path in food franchises? Work with Kouzina right now to accomplish your business ideas!

Frequently Asked Questions (FAQs)

1. How much does it cost to start a fast food franchise in India?

The cost typically ranges from ₹6 lakhs to ₹20 lakhs or more, depending on the brand, location, kitchen format (cloud vs. dine-in), and operating model. Well-known international brands usually command higher franchise and royalty fees, while newer models like Kouzina offer lower investment entry points.

2. What is included in the franchise fee?

The franchise fee usually grants you the right to use the brand name, access their menu systems, training programs, supply chain, and marketing support. It’s a one-time upfront cost, typically ranging from ₹2–₹20 lakhs, depending on the brand's popularity and scale.

3. Do all fast food franchises charge royalty fees?

Most fast food franchises charge monthly royalty fees between 5% to 10% of gross revenue. However, emerging models like Kouzina follow a leaner approach with lower or fixed royalties, making it more profitable for first-time franchisees.

4. Is a fast food franchise profitable in India in 2025?

Yes, fast food franchises continue to be highly profitable, especially with the boom in delivery-first dining and cloud kitchens. With the right brand, location, and operations, you can expect break-even in 18–24 months, or even sooner in high-demand locations.

5. Which are the top affordable fast food franchises in India?

Some of the most budget-friendly yet scalable fast food franchise options include:

• Kouzina (multi-brand cloud kitchen, low capex)
• Goli Vada Pav
• Wow! Momo
• Rolls King

6. How do cloud kitchen franchises reduce overall investment?

Cloud kitchen franchises eliminate the need for prime real estate and front-of-house staff, which reduces costs significantly. These models focus only on delivery and takeaway, optimizing kitchen space and centralizing operations.

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