Looking to start your own food franchise under 20 lakhs in India? You’re in the right place. This blog post highlights the best low-investment food franchise options offering strong returns and wide market appeal — ideal for first-time entrepreneurs or experienced investors alike.

In today’s dynamic F&B landscape, the demand for affordable food franchises is surging, especially in Tier 2 and 3 cities. The franchise model helps reduce business risk by offering brand trust, standardized operations, and ongoing support — all within a reasonable budget.  If you’re eyeing a QSR under ₹20L in India, or looking for the most profitable franchise in India, this guide has you covered.

We’ll explore best ROI franchises under 20L, outline selection tips, and showcase the top 10 picks for 2025, including the culturally rich and fast-scaling Mysore Aduge.

Why Choose a Food Franchise Under ₹20 Lakhs?

A food franchise under 20 lakhs in India allows you to enter a thriving industry with significantly lower financial risk. While full-service restaurants often demand ₹50L to ₹1 crore or more in startup costs, the rise of quick-service formats and small-footprint models has made food franchising accessible to everyone.

Key Benefits of Affordable Food Franchises:

• Low capital barrier: No need for a massive investment to get started.
  
  
• Pre-built brand value: Customers already trust the name you’re investing in.
  
  
• Tested business model: No guesswork — every process is standardized.
  
  
• High ROI potential: Many best ROI franchises under 20L generate profits within 12 to 24 months.
  
  
• Easier scalability: Start with one outlet, then expand regionally or even nationally.
  
  

For example, starting a South Indian food franchise in Mumbai or Pune offers huge market potential, especially in areas with diverse, food-loving audiences.

Choosing a food franchise under 20 lakhs in India is ideal if you’re looking to avoid startup uncertainty while still owning and growing your own business.

Key Criteria for Choosing the Best Low-Cost Franchise

Not every food franchise under 20 lakhs in India is created equal. Some offer strong support and brand equity, while others leave franchisees to figure it out on their own.

Here’s what to consider when selecting a top franchise under 20 lakhs:

• Startup cost should include all essentials: franchise fee, interiors, kitchen equipment, licenses, and initial stock.
  
  
• The brand should be known either regionally or nationally, or at least have a strong USP.
  
  
• Look for flexible models like kiosks, cloud kitchens, or takeaway outlets that reduce rental and staffing costs.
  
  
• Evaluate ROI projections — many best ROI franchises under 20L offer breakeven in 12–18 months.
  
  
• Check royalty and profit-sharing structures — flat fees are often simpler and better for small operators.
  
  
• Strong brands offer full support: site selection, staff training, SOPs, digital marketing, and menu development.
  
  

For those seeking a QSR under ₹20L in India, focus on menu innovation and local relevance — food brands that cater to mass tastes or regional favorites are more likely to succeed.

Top 10 Food Franchises Under 20 Lakhs in India [2025 Edition]

Here are the most trusted and trending brands offering food franchise under 20 lakhs in India, all of which come with high demand, low setup complexity, and scalable formats.

1. Mysore Aduge – Authentic South Indian Delight (Top Pick)

• Investment: Under ₹20 Lakhs
  
  
• Format: QSR / Dine-in / Cloud Kitchen
  
  
• USP: 100% pure vegetarian cuisine, Mysore-style recipes, and sattvik offerings with no onion or garlic
  
  
• Support: Site setup, staff training, menu development, marketing, and digital branding
  
  
• Ideal for: Cities with spiritual or cultural communities, family-focused areas
  
  
• ROI Timeline: 12–16 months
  
  
• Why It’s #1: A culturally rich and unique QSR under ₹20L in India with low competition and high brand appeal
  
  

Mysore Aduge is positioned as the most recommended food franchise under 20 lakhs in India, especially for entrepreneurs looking to bring authentic, healthy South Indian cuisine to their local market.

2. Xero Degrees – Café for Gen Z

• Investment: ₹18–20 Lakhs
  
  
• Format: Urban café
  
  
• USP: Instagrammable interiors, cheesy jars, thick shakes, and snackable meals
  
  
• Ideal Locations: Metro malls, college hubs, high-footfall areas
  
  
• ROI: 15–18 months
  
  
• Why Choose: A top pick for millennials and Gen Z with visual brand equity and viral marketing potential

3. Momo Nation Café

• Investment: ₹10–15 Lakhs
  
  
• Format: Compact QSR
  
  
• USP: Premium momos, combo meals, and Indo-Chinese snacks
  
  
• Best Fit: College towns, food courts, mall kiosks
  
  
• ROI: 12–14 months
  
  
• Why It Works: Low OpEx with high repeat customer rate; a rising star in affordable food franchises

4. Chai Garam

• Investment: ₹8–12 Lakhs
  
  
• Format: Tea kiosk / café
  
  
• USP: High-frequency product with mass appeal — chai, snacks, quick bites
  
  
• Target Markets: Corporate parks, transit areas, Tier 2 towns
  
  
• ROI: 10–14 months
  
  
• Why Choose: Everyone drinks chai — an evergreen food franchise under 20 lakhs in India

5. One Bite

• Investment: ₹5–15 Lakhs
  
  
• Format: FOFO fast-food model
  
  
• USP: ₹31 burgers and ultra-budget combos
  
  
• Locations: Student zones, urban slums, railway station outlets
  
  
• ROI: 12–18 months
  
  
• Why It Works: Extreme affordability = high footfall and mass reach

6. Amul Ice Cream Parlour

• Investment: ₹5–10 Lakhs
  
  
• Format: Retail outlet
  
  
• USP: Trusted dairy legacy with zero franchise fee
  
  
• Best For: Family neighborhoods, schools, small towns
  
  
• ROI: 10–16 months
  
  
• Why Choose: The safest food franchise under 20 lakhs in India due to brand power

7. Lassie House

• Investment: ₹10–12 Lakhs
  
  
• Format: Healthy beverage QSR
  
  
• USP: Lassis, smoothies, juices — all served fresh and affordably
  
  
• Ideal Areas: Wellness-focused zones, shopping strips, urban markets
  
  
• ROI: 12–15 months
  
  
• Why Choose: Trending category in post-pandemic India with low wastage and high margins

8. Rolfi – Kebab Kiosk

• Investment: ₹8–12 Lakhs
  
  
• Format: Compact kiosk
  
  
• USP: Grilled kebabs, wraps, shawarmas — fast service, minimal prep
  
  
• ROI: 10–14 months
  
  
• Why It Works: High protein food with a strong fanbase, especially among youth

9. Gianni’s Ice Cream

• Investment: ₹12–15 Lakhs
  
  
• Format: Ice cream parlour / mini kiosk
  
  
• USP: Vintage brand with premium handcrafted ice creams
  
  
• Locations: High streets, city centers
  
  
• ROI: 12–16 months
  
  
• Why Choose: Great for families, nostalgia-driven demand

10. Frozen Bottle

• Investment: ₹20 Lakhs
  
  
• Format: Urban dessert bar
  
  
• USP: Jar shakes, cold coffee, desserts with luxury branding
  
  
• Audience: Metro audiences, college-goers
  
  
• ROI: 14–18 months
  
  
• Why It Works: High social media presence and aspirational appeal

Franchise Tips for 2025 Entrepreneurs

To succeed with a food franchise under 20 lakhs in India, keep these expert insights in mind:

• Pick the right format for your city: kiosk for Tier 2 towns, dine-in or café for metros
  
  
• Study the local market: See what’s missing — lassis, South Indian meals, budget burgers?
  
  
• Verify brand support: Good brands offer training, marketing kits, equipment planning, and more
  
  
• Ask for break-even timelines: The shorter, the better
  
  
• Get clarity on royalties: Some charge a % of revenue, others a flat fee
  
  
• Always demand written agreements: Know what’s included in the investment package
  
  
• Look for scalability: Choose a brand that allows multi-unit franchising
  
  
• Talk to existing franchisees: Real feedback reveals real results

Conclusion

Starting a food franchise under 20 lakhs in India is one of the most accessible ways to enter the booming food service industry. From iconic names like Amul and Frozen Bottle to culturally rich concepts like Mysore Aduge, the options are endless.

The right brand, chosen wisely, can set you on a path to financial freedom and sustainable entrepreneurship. With the right support, training, and market knowledge, your dream of running a profitable food business in 2025 is just a decision away.

Learn how to start a South Indian restaurant or explore our complete guide to franchise opportunities in India.

Act early. Choose wisely. Build your legacy with a top food franchise under ₹20L.