FranchiseOptions Case Study 01 · 11 November 2026
Lenskart expanded its eyewear retail network using a mix of company-run stores and franchise-operated stores. The balance between those models has changed as the network has grown. In its November 2026 shareholder letter, Lenskart described a continuing shift from franchisee-owned, franchisee-operated stores (FOFO) to company-owned, company-operated stores (COCO). For a founder weighing expansion, that raises a practical question: when should a partner run the store, and when should the company take on daily operations?
Source: Lenskart Q2 FY27 shareholder letter
What does the Lenskart franchise model look like?
Lenskart’s IPO disclosure describes two franchise-operated formats: FOFO, where a franchisee owns and operates the store, and COFO, where the company owns it and a franchisee operates it. COCO adds a third arrangement for comparison: the company both owns and runs the store. These labels describe the broad division of responsibilities. The agreement determines details such as who pays for fit-out, holds stock or handles returns.
| Format | Store owner | Daily operator |
|---|---|---|
| COCO | Company | Company |
| FOFO | Franchisee | Franchisee |
| COFO | Company | Franchisee |
Source: Lenskart IPO disclosure filed with NSE
How many franchise stores did Lenskart disclose?
As at 30 June 2025, Lenskart disclosed 472 franchise-operated stores, representing 22.09% of its retail network at that date.
| Market | Format | Stores |
|---|---|---|
| India | FOFO | 306 |
| India | COFO | 8 |
| International | FOFO | 158 |
Source: Lenskart IPO disclosure, franchise store table
What changed as the network grew?
Lenskart reported 3,624 active stores across its group network at 30 September 2026. It added 165 net stores during the quarter, including 143 in India and 22 internationally. The 3,624 figure covers the full active network, while the 472 figure above covers the franchise-operated subset at an earlier reporting date.
In its discussion of the India business, Lenskart said the shift from FOFO to COCO reduced commission costs as a share of revenue. Running more stores directly also changes what the company needs to manage. For a founder comparing the two models, commission costs are one part of the calculation. Rent, staffing, store investment and operational oversight also belong in the comparison.
Source: Lenskart Q2 FY27 shareholder letter, operating highlights and India segment discussion
What can founders and prospective franchisees take from this?
- Founders: Decide which tasks need central oversight before signing local partners. For a service-led retailer, define who trains staff, maintains service standards and handles customer complaints.
- Prospective franchisees: Ask for a written breakdown of who pays for the fit-out, employs the team, carries inventory and handles returns. Use those answers to estimate the working capital and involvement your outlet would require.
Is COFO the same as FOCO?
They allocate ownership and operations differently. In COFO, the company owns the store and the franchisee operates it. In FOCO, the franchisee owns the outlet and the company operates it. Compare the responsibilities in the actual agreement when assessing either format.
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This independent editorial case study by FranchiseOptions draws on the public sources cited. Store counts and models reflect the dates and markets covered. For current franchise availability, eligibility and commercial terms, contact the brand or its authorised representative. Featured image is an AI-generated illustration of an eyewear shop.
