In 2026, the retail industry of India has undergone a seismic shift, and value fashion has emerged as the undisputed leader of the consumer discretionary segment. The key driver of this revolution has been Zudio, the Tata Group-backed retail behemoth that has redefined the concept of ‘affordable chic’ for a billion people. The brand has managed to bridge the gap between ‘high street style’ and ‘mass market pricing’ with a staggering presence of over 850 stores in 164+ cities by early 2026.
Depending on the region and shop size, the Zudio franchise cost in India usually varies between ₹50 lakh and ₹2 crores. This includes franchise fees, interior setup, inventory, security deposits, and operational costs. The growth story of Zudio can only be described as legendary, with a remarkable 41% CAGR in revenue over the last few years and accounting for nearly 66% of Trent Limited’s total revenue.
The moment you step inside any of its stores, you can feel the brand’s energy: packed stores, high inventory turnover, and a clientele that includes Gen Z trendsetters and budget-savvy families alike. In this article, we discuss the costs, profitability, and operating strategy of a Zudio Franchise in 2026. So, let’s begin!
Zudio Brand Overview
Zudio, launched in 2016 by Trent Ltd., a part of the Tata Group, has grown into a household name in India’s fashion retail scene. It specialises in fashionable, reasonably priced clothing for kids, ladies, and adults.
The brand’s philosophy is rooted in making fashion accessible to all, offering trendy collections at prices starting from as low as ₹49.
2026 Insights of Zudio
- Massive Footprint: Zudio now boasts 850+ stores across India as of January 2026.
- Revenue Dominance: Zudio now contributes to two-thirds of Trent’s total revenue, leaving behind established brands such as Westside.
- Global Foray: Zudio is aggressively entering international markets in the Middle East after a successful pilot in Dubai.
- Tech Integration: Zudio is making increased use of RFID technology for inventory management.
- Hyper-local Penetration: A significant change in 2026 is that Zudio is entering Tier 3 cities’ micro-markets, as the brand realizes that the market is ripe for entering these cities.
Being backed by the Tata Group, Zudio carries a reputation for trust, consistency, and quality, which makes it a highly attractive opportunity for potential partners when franchising opens up.
Zudio Franchise Business Model Overview
If you’re hoping to open a Zudio franchise, there’s something important you should know. Zudio currently does not operate through a franchise model. Rather, the company uses a Company-Owned, Company-Operated (COCO) strategy. That means every Zudio store you see across India is fully owned and run by Tata Trent Limited, the retail arm of the Tata Group.
In this model, the investor only provides the capital and the real estate, and the entire operations, including hiring staff and replenishing inventory, are handled by the experts at Trent, Tata Group, giving the owner a completely ‘hands-off’ experience and ensuring that the store delivers the same premium shopping experience as a flagship store in a metro city.
In simple terms, Zudio prefers to keep full control over its store operations, right from product selection to customer service. This model allows them to maintain a consistent brand experience no matter where the store is located.
| Feature | Details of the COCO Model |
| Operational Control | 100% managed by Trent Limited (Tata Group) |
| Inventory Management | Centrally managed with a high churn rate (fresh stock every few weeks) |
| Pricing Strategy | Fixed pricing model; no seasonal discounting (builds consumer trust) |
| Product Focus | 100% Private Label (higher margins and quality control) |
| Revenue Sharing | Typically a percentage of monthly gross sales (approx. 10%–16%) |
| Target Audience | Aspirational middle-class and youth in Tier-1, 2, and 3 cities |
Here’s what this means for potential investors:
- You can’t buy a Zudio franchise right now, there’s no option to invest and run a store under their name.
- Tata manages everything internally, ensuring all outlets follow the same standards for pricing, display, customer engagement, and merchandise.
- The COCO model helps Zudio keep a strong grip on quality and uniformity across all stores.
Also Read: Tumble Dry Franchise Cost in India
Advantages of Collaborating with a Tata Group Company
Investing in a retail brand backed by the Tata Group brings more than just a brand name, it offers a legacy of trust, support, and proven business ethics.
Key Benefits:
- Customer Trust: Tata is one of the most respected corporate groups in India, consistently ranked high for customer satisfaction and ethics.
- Operational Support: When franchising opens, Tata Trent is likely to offer detailed SOPs, technology tools, and merchandising help.
- Brand Recognition: Stores benefit from instant recognition, reducing the time and cost of building credibility in the market.
Being associated with a Tata brand like Zudio can provide a head start in brand loyalty and customer acquisition.
Zudio Franchise Investment Breakdown 2026
Starting a Zudio franchise (if offered in the future) would require a significant financial commitment. The brand’s premium store design, inventory standards, and operational support mean you’d need to invest across several key areas. Here’s a breakdown of the projected costs:
- Franchise Fee: This one-time charge allows the permission to utilise the Zudio name and access its business model. It is estimated to be between 10 lakhs and 15 lakhs.
- Store Setup and Interiors: Includes expenses for store design, lighting, fixtures, branding, and billing systems. In accordance with the location and shop size, prices range from ₹30 lakhs to ₹50 lakhs.
- Inventory Investment: An initial investment of ₹15 lakhs to ₹20 lakhs is needed to stock apparel and accessories for launch.
- Security Deposit: A refundable security deposit of ₹20 lakhs to ₹30 lakhs is typically required to secure the store premises.
- Legal & Registration Costs: These include lease documentation, registration fees, and taxes, typically costing ₹10 lakhs to ₹20 lakhs.
- Additional Expenses: Around ₹40 lakhs may be spent on marketing, employee training, utilities, and other start-up costs.
Estimated Investment Table
| Expense Category | Estimated Range (₹) |
| Franchise Fee | ₹10 – ₹15 lakhs |
| Store Setup & Interiors | ₹30 – ₹50 lakhs |
| Inventory Investment | ₹15 – ₹20 lakhs |
| Security Deposit | ₹20 – ₹30 lakhs (refundable) |
| Legal & Registration Costs | ₹10 – ₹20 lakhs |
| Additional Expenses | Approx. ₹40 lakhs |
| Total Investment | ₹50 lakh – ₹2 crores |
Depending on the location and city, the total setup cost may go up to ₹2 crores.
Zudio Franchise Cost in Tier-3 Cities
The Tier 3 cities are considered an ideal destination for entrepreneurs as the real estate cost is lower in these cities compared to Metro cities.
| Investment Component | Estimated Cost (INR) | Remarks |
| Franchise Fee | ₹10 Lakhs – ₹15 Lakhs | One-time, non-refundable brand access fee |
| Security Deposit | ₹20 Lakhs – ₹25 Lakhs | Refundable (subject to agreement terms) |
| Interior & Fit-outs | ₹30 Lakhs – ₹50 Lakhs | Includes branding, lighting, and trial rooms |
| Initial Inventory | ₹30 Lakhs – ₹40 Lakhs | Bulk purchase of the launch collection |
| Working Capital | ₹10 Lakhs – ₹15 Lakhs | To cover initial 3-6 months of utilities/salaries |
| Total Investment | ₹1 Crore – ₹1.5 Crore | Estimated for a 6,000 sq. ft. store |
Zudio Franchise Revenue & Profit
With its fast-growing footprint and mass appeal in affordable fashion, Zudio has emerged as a strong performer in India’s retail landscape. While the brand currently doesn’t offer franchise opportunities, it’s still useful to understand the potential revenue and profit model for anyone eyeing future possibilities.
The profitability of a Zudio outlet depends on several factors, including store size, location, operational efficiency, and regional demand. Stores located in metro cities or busy commercial zones typically enjoy higher sales volumes and better margins.
Key Profit Metrics:
- Monthly Profit Margin: Based on expenses including rent, payroll, and day-to-day operations, it is estimated to be between 10% and 20%.
- Breakeven Period: Most stores are expected to recover the initial investment within 3 to 5 years.
Factors Influencing Revenue:
- High footfall in metro and tier-1 city locations
- Smooth inventory and workforce management
- Regular promotions and updated product lines
Revenue Example:
If a Zudio store earns an average monthly revenue of ₹40 lakhs (a common benchmark in urban outlets):
- At 10% Profit Margin: Profit = ₹4 lakhs/month
- At 20% Profit Margin: Profit = ₹8 lakhs/month
These profit estimates reflect why Zudio is viewed as a highly promising retail venture, especially under the umbrella of the trusted Tata brand.
How to Apply for a Zudio Franchise
If you’re interested in opening a Zudio store, the application process involves a few key steps designed to assess your business readiness and align you with the brand’s retail standards. Here’s how you can apply:
Step-by-Step Application Process:
- Initial Contact: Reach out to Zudio’s official franchise team through the contact form, email, or phone number provided on their franchise website. Make sure you submit correct personal, financial, and business information.
- Application Review: The Zudio team will evaluate your application according to your selected shop location, financial capacity, and business experience.
- Franchise Approval: Upon approval, you’ll proceed with signing the franchise agreement and paying the required franchise fee to initiate the partnership.
- Store Setup Support: With approval secured, you can begin the store setup process, including interior development, inventory procurement, and hiring staff. In order to maintain brand consistency, Zudio’s team will usually help you through these stages.
- Training & Launch: You will be trained in operations, inventory handling, and customer service. Additionally, you will receive marketing and promotional assistance to ensure your business debut is a success.
Zudio Franchise Contact Details
To apply for a franchise or express interest as a property owner, you may contact them through the following official channels:
- Official Website: www.zudio.com
- Partnership Inquiry: zudio.rba@trent-tata.com (Retail Business Associate)
- Customer/General Support: zudiohelp@trent-tata.com
Zudio Franchise Eligibility & Setup Criteria
To preserve the brand’s consistency and success across all locations, a Zudio franchisee must adhere to specified business standards and operational requirements. Here’s a breakdown of the essential prerequisites for potential partners:
1. Capital Requirement
To open a Zudio outlet, you’ll need a total investment ranging from ₹50 lakhs to ₹2 crores. This includes costs such as franchise fees, interior setup, inventory stocking, and related operational expenses.
2. Retail Space
A suitable location is key. You must have access to a commercial space between 800 and 1,200 square feet, ideally in a bustling marketplace, mall, or other high-traffic urban areas to ensure visibility and footfall.
3. Relevant Background
While not mandatory, having prior experience in retail management or running a business is seen as an advantage. It helps in understanding store operations, customer handling, and day-to-day management.
4. Infrastructure Standards
Your store should be able to meet Zudio’s infrastructure expectations including fitting out the premises with approved furniture, lighting, technology systems, and visual merchandising tools.
5. Business Commitment
Zudio seeks partners that are passionate about retail and have good business understanding. You should be dedicated to upholding the brand’s image and strictly following its operational protocols and customer service standards.
6. Staffing
Each store requires a team of 10 to 20 employees, all of whom must go through Zudio’s in-house training to ensure a consistent shopping experience for customers.
Future Outlook: Will Zudio Open for Franchising?
Zudio now operates according to the Company-Owned, Company-Operated (COCO) model. However, given the brand’s rapid expansion and growing demand from aspiring retail partners, industry experts believe Zudio may explore franchise partnerships in the near future.
Potential indicators:
- Increasing interest from Tier-2 and Tier-3 cities
- High profitability in value fashion retail
- Tata’s earlier franchising experience with brands like Westside and Star Bazaar
While there’s no official confirmation yet, it’s a good idea to stay prepared and express interest early in case opportunities open up.
Which Franchise Is Most Profitable? – Zudio vs Zepto vs Blinkit vs Apparel shops
Based on the data for the year 2026, it has been observed that although the Quick Commerce segment (Zepto/Blinkit) is expanding rapidly, the Apparel segment (Zudio) has higher margins for individual investors in the long run compared to the Quick Commerce segment.
| Metric | Zudio (Apparel) | Zepto / Blinkit (Q-Comm) | Local Apparel Shop |
| Investment | High (₹1.5Cr – ₹3Cr) | Moderate (₹40L – ₹80L) | Low/Medium (₹20L – ₹50L) |
| Net Margin | 10% – 20% | 3% – 7% (Unit level) | 15% – 25% |
| Risk Level | Low (Tata Backing) | High (Heavy Competition) | Very High (Unorganized) |
| Operational Load | Zero (FOCO Model) | High (24/7 Delivery) | Very High (Owner Managed) |
| Scalability | Easy (Multi-unit) | Geographic dependent | Limited |
Common Challenges to Expect
If Zudio opens franchising in the future, here are some realistic challenges entrepreneurs might face:
- High Rental Costs: Especially in metro cities, securing a prime location can significantly increase startup costs.
- Inventory Management: Fast fashion requires rapid stock movement and precise forecasting.
- Strict Compliance: Tata Trent is likely to demand adherence to their operational and visual merchandising guidelines.
Understanding these challenges ahead of time can help you plan better and avoid costly mistakes.
What Marketing Strategies can Zudio franchisees use?
While the brand will be taken care of at the national level, local marketing is essential to capture the community’s attention. Here are most common marketing strategies Zudio use:
- Moment Marketing: Utilise local festivals or regional holidays by leveraging social media calendars to promote ethnic wear.
- Influencer Marketing: Engage with local fashion influencers for creating “Zudio Haul” videos targeting the youth demographic in the city.
- Google Optimisation: Optimise your Google My Business account with high-quality pictures of your store to ensure higher visibility for searches like “Fashion Stores Near Me.”
- SMS Geo-fencing: Automate an SMS marketing campaign for potential customers within a 2 km radius of the store location, whether it is in a mall or on the high street.
- Visual Merchandising: Keep the store windows looking vibrant, changing displays every 15 days, considering the high frequency of Zudio’s latest collections arriving in stores.
Conclusion
The success of Zudio as a Tata Group brand demonstrates the high demand in India for reasonably priced, stylish clothing. While it currently operates only company-owned stores, franchising could open new doors for entrepreneurs in the future.
The investment needed reflects the brand’s high standards and premium store experience. Staying prepared will give potential partners an advantage when franchise opportunities arise. Meanwhile, Zudio remains a trusted and exciting name in India’s retail market.
FAQs
1. Can I open a Zudio franchise right now?
No, Zudio currently does not offer franchising and operates only through company-owned stores.
2. What is the estimated investment needed to start a Zudio franchise?
If franchising were available, the estimated investment would range from ₹50 lakhs to ₹2 crores.
3. What kind of retail space is required for a Zudio store?
A business location in a high-traffic region that is between 800 and 1,200 square feet is usually desired.
4. What is the expected profitability of a Zudio store?
Stores could potentially earn a profit margin between 10% to 20%, with breakeven expected within 3 to 5 years.
5. What support does the Tata Group provide to franchise partners?
Tata Group franchises usually benefit from strong brand recognition, operational support, training, and merchandising assistance.