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What is the Franchise Cost of Badnaam Chai?
Starting a business is a significant decision, and one of the most critical choices entrepreneurs face is whether to build an independent venture or invest in a franchise. Franchising offers the opportunity to leverage the success and reputation of an established brand. In this article, we delve into the franchise cost of Badnaam Chai, a rapidly growing beverage brand known for its unique kulhad wali chai and strong presence among millennials and Gen Z.
Overview of Badnaam Chai
Badnaam Chai has quickly made a name for itself in the beverages industry with its unique taste and youth-centric culture. With outlets in Pune and Aurangabad, and upcoming locations in Mumbai, Navi Mumbai, Nashik, Patna, and Delhi, Badnaam Chai has sold over 700,000 cups of chai, indicating a promising franchise opportunity.
Franchise Cost Breakdown
To become a franchisee of Badnaam Chai, there are several financial aspects to consider. Here’s a detailed breakdown:
Franchise Fees:
- The initial franchise fee for Badnaam Chai is Rs. 1,00,000. This fee covers brand usage, marketing campaigns, call/chat/mail-based support, and valuable education and assistance.
Space Requirements:
- Outlet Model:
- Space Required: 150-200 Sq. Ft.
- Front Open Space: 50 Sq. Ft.
- Average Gross Margin: 48%
- Cafe Model:
- Space Required: 500-800 Sq. Ft.
- Front Open Space and parking space required
- Average Gross Margin: 55%
Setup Costs:
- It takes a minimum of 20-30 days to set up the outlet/cafe once the location is finalized and the agreement is signed.
- The franchisee is responsible for the interior and exterior work of the outlet, which must be done through Badnaam Chai’s appointed agency unless otherwise agreed upon.
Raw Materials:
- Franchisees must procure all raw materials, including tea powder, sugar, masala, and kulhad, from Badnaam Chai or brands chosen by Badnaam Chai.
Additional Costs:
- Franchisees have the freedom to include their choice of snacks and additional ceramic tea cups along with the prescribed kulhads and paper cups.
Benefits of Partnering with Badnaam Chai
Partnering with Badnaam Chai comes with several advantages:
- Unique Offerings: Proprietary blend of Assam tea leaves, rich fat milk, and a homemade mix of magic masala served in terracotta kulhad.
- Youth Culture: A strong brand identity that resonates with millennials and Gen Z.
- Profitability: A well-designed menu and pricing strategy that facilitates early breakeven and profitability.
- Support and Training: Comprehensive product training and staff assistance, marketing support, and efficient use of space for maximum revenue.
- Brand Value: Strong brand recognition and marketing efforts both online and offline.
Terms and Conditions
- Franchise tenure is 5 years, renewable upon expiration.
- Franchisees must adhere to all branding guidelines and procurement requirements.
- Detailed terms and conditions are specified in the final legal agreement between Badnaam Chai and the franchisee.
Conclusion: Investing in a Badnaam Chai franchise offers a promising opportunity to tap into the growing beverage market with a brand that has already captured the hearts of many. With reasonable franchise fees, comprehensive support, and a profitable business model, Badnaam Chai provides a solid foundation for aspiring entrepreneurs. If you dream of owning a business and being part of an exciting journey, Badnaam Chai is the perfect partner.
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