What Is a Franchise?

A franchise is a business arrangement where an individual (franchisee) is granted the rights by a company (franchisor) to operate under its brand name, using its products, systems, and marketing strategies. In return, the franchisee pays fees and royalties. This model allows entrepreneurs to start a business with a proven concept, reducing risk and increasing chances of success.

Franchising is especially popular in sectors like food & beverage, retail, education, and wellness — with food franchises being among the most sought-after due to India’s booming culinary culture.

FOFO vs FOCO: Franchise Models in India

India’s franchise ecosystem offers multiple formats, but FOFO and FOCO are the most widely adopted in the food sector.

FOFO (Franchise Owned, Franchise Operated)

Ownership & Operations: The franchisee owns and runs the outlet.

Investment: Franchisee bears full setup and operational costs.
Control: High autonomy in daily operations, within brand guidelines.
Returns: Variable profits depending on performance.
Best For: Entrepreneurs who want hands-on control and higher profit potential.

Examples: Domino’s, Subway, KFC often use FOFO in Tier 2 & 3 cities to encourage local ownership.

FOCO (Franchise Owned, Company Operated)

Ownership & Investment: Franchisee funds the setup.

Operations: Managed entirely by the company.
Returns: Franchisee receives fixed ROI or revenue share.
Control: Limited involvement; ideal for passive investors.
Best For: Investors who prefer steady returns without operational stress.

Examples: Brands like Haldiram’s, Chaayos, and The Beer Café offer FOCO formats in premium locations.

Food Franchises in India: A Flavorful Opportunity

India’s food franchise market is thriving, with options ranging from quick-service restaurants (QSRs) to dessert kiosks and ethnic cuisine chains.

Popular Food Franchise Categories: QSRs: McDonald’s, Wow! Momo, Faasos
Cafés & Beverages: Chai Point, Café Coffee Day, The Belgian Waffle Co.
Ethnic & Regional: Biryani Blues, Haldiram’s, Bikanervala
Desserts & Ice Cream: Baskin Robbins, Giani’s, Naturals

Investment Range: Low-cost: ₹5–10 lakhs (e.g., Lassi Corner, Amul)
Mid-range: ₹20–50 lakhs (e.g., Rolls Mania, Chai Sutta Bar)
Premium: ₹1 crore+ (e.g., Domino’s, KFC, Barbeque Nation)

Final Bite

Whether you’re a hands-on foodie entrepreneur or a passive investor, India’s franchise landscape offers a model that fits your appetite. FOFO gives you the reins, while FOCO lets you enjoy the ride. And with food franchises, you’re not just selling meals — you’re serving experiences.