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Big Bazaar Franchise: It is profitable?

calendar19 Mar, 2021
timeReading Time: 4 Minutes
Big Bazaar Franchise in India

Are you looking forward to setting up a business that ensures long-term sustainability along with consistent revenue? Big Bazaar Franchise can be a great business model for aspiring startups that lack adequate funding and seeks stable returns for years to come.

Considering the inherent advantages of franchise business model, it will be interesting to unfold the potential of Big Bazaar franchise and find out it is worth the investment? 

Growth of Retail Sector in Current Era

The retail sector of India is one of the rapidly thriving sectors accounting for a significant share of 10% of the nation’s total GDP. It is also acknowledged as one of the top-five retail markets on the global platform. 

Big Bazaar, an Indian retail giant that comprises a departmental, hypermarkets, and grocery store, started its operation in 2001 under the parent company “Future group,” which already registered a considerable presence in the retail and fashion market. 

In 2020, Mukesh Ambani’s Reliance Retail acquired Big Bazaar for the whopping investment of ₹24,713 crores ($3.36 billion). The acquisition certainly helped this brand to cement its position further into the Indian marketplace. What’s new? Big Bazaar is now planning to open 16 more stores across India to take the overall count to 300 over the subsequent three quarters. 

Read our article:What are the Vital Prerequisites for Setting up Franchise Business in India?

Key Performance Indicator of a Franchise Business in India

Key Performance Indicator of a Franchise Business in India

Why Big Bazaar is Unique From its Counterparts?

Big Bazaar is unlike a traditional hypermarket; it is a destination that meets the demand of the consumers. Big Bazaar has a comprehensive portfolio of products under one umbrella. Consumers don’t have to wonder about roaming different places for every product they need. From grocery items to office supplies & stationeries, medicines to apparel, Big Bazaar is a complete solution for consumers.

The franchise owner of Big Bazaar usually gets a commission of 3-15% based on the product’s portfolio and revenue potential. The compensation will also integrate rewards & recognition programs.

Overview of Big Bazaar’s Evolution Over the Years

In the past few years, Big Bazaar has invested considerable funds in completely revamping the stores & toward the betterment of consumer satisfaction within almost every store operating pan India. Widespread utilization of social and web-based platforms escalated a considerable share of consumer footfalls.

These modifications enabled this group to increase sales by 13.4% in the same store during the year. These changes helped Big Bazaar increase their sales by 11.5% per square feet and increased sales by 13.4% in the same store during the year.

The Big Bazaar now reins a small store network that comprises Heritage Fresh & Easy Day stores. The Big Bazaar is now shifting its attention to expanding small store networks that can consolidate up to 10000 stores, ensuring the nearby accessibility to every customer class residing in the country’s urban area.

This will enable them to cater to every consumer without any limitation of time & location. It will also allow them to carry out business activities at a reduced cost involved compared to the traditional retail store models. 

Introducing Mobile & Online Platforms

The Future Group carries out its business via two retailing store modes, the large & more prevalent form retailing via the Big Bazaar & small-format neighborhood retail business, engaged in apparel, food, grocery items. The group has also envisaged introducing mobile & online platforms.

These will enable the consumer to order their goods through applications, calls, and messages and allow them to scan the bar code, pay electronically, and leave the store without being hassled up by standing in a queue of the cash counter to pay the bills.

The Indian consumer market, particularly the retail sector of our nation, continues to lures significant FDI from business giants from all across the globe[1]. The prevailing scenario makes the Big Bazaar franchise a profitable business model for startups and aspiring entrepreneurs. 

Costing related to the Big Bazaar Franchise 

Big bazaar franchisee does not excel on standard pricing. Depending on the location of business and scalability, a big bazaar franchisee can charge up to Rs 5 lakhs as setup charge and additional Rs 5 lakhs as a refundable security deposit. Startups with inadequate funding can approach banks and request a loan to start their business journey. 

Things to Consider Before Commencing Big Bazaar Franchise Business

  • Look out for the hidden cost apart from setup and security expenses. 
  • Identify expenses regarding royalty fee, brand development fund fees, technology, & support fees. 
  • While signing up a contract for a franchise, make sure to examine all the terms regarding duties and obligations.
  • Look if the franchisor is providing ample training modules to train your staff for the given business operation, and the same is mentioned in the contract. 

The central theme of the franchise-based business is the licensing of intellectual property rights (IPRs). The franchisor enables the franchisee to leverage its intellectual property such as logo, design, trademark, business concepts, etc. You must have a clear understanding of your rights in this regard. The contract must indicate how the franchisee may utilize the intellectual property. 

While examining your rights as a franchisee, it is imperative to evaluate the franchise contract with an experienced lawyer and discuss and review whether or not included terms overshadow profitability aspects. 


The Big Bazaar is fairly a productive franchise for anyone who intends to earn good revenue in the retail sector. Anyone can set up Big bazaar franchise store with a small initial investment compared to the competitive retail chain stores operating pan India. Apart from high return prospects, the individual can benefit from long-term sustainability and low marketing budget. All Big Bazaar franchise tick all the right boxes for entrepreneurs for whom cost is the primary constraint for setting up a successful business model. 

Read our article:Potential Benefits of Starting a Franchise Business in India

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