The MBA Chaiwala franchise is a popular business opportunity for those interested in owning a small tea shop or cafe. This franchise has gained significant popularity over the years, with its unique brand identity and exceptional customer service. In this blog post, we will discuss the cost, fees, and profit associated with the MBA Chaiwala franchise in 2023, and also provide details on how to apply.
Who is Owner of MBA Chaiwala ?
MBA CHAIWALA FRANCHISE is a fast-growing homegrown Indian tea and snack brand. Firstly, Started by a young entrepreneur, a TEDx speaker, and social worker Prafull Billore aka (MBA CHAI WALA), back on 25 July 2017, in (AHMEDABAD) GUJRAT. and now for the past 5 years, the brand has established its presence across 15+ cities with 100+ MBA Chai Wala Franchises & 1,00,000+ Daily Customers in India. And, Had revenue of (3+crores} in FY2020.
Overview of MBA Chaiwala Franchise:
MBA Chaiwala is a brand that is recognized across India for its quality tea and excellent customer service. The franchise was established in 2016, and since then, it has become a household name. The franchise offers a range of tea options, including traditional chai, iced tea, and tea latte. It also provides various snacks and bakery items that complement its tea offerings.
MBA Chaiwala franchise provides its franchisees with a comprehensive business model and training that covers everything from store design to marketing and branding. The company aims to provide an excellent customer experience through its unique branding and product offerings.
Famous Chai Of MBA Chai Wala
- Tulsi Chai
- Masala Chai
- Elaichi Chai
- Regular Chai
- Chocolate Chai
In addition to these several varieties of normal tea, they also serve green tea, coffee, three different kinds of mojitos, and coolers. They have French fries, Puff, Sandvich, Maskaban, Maggi, and other foods for Nasta.
How does the MBA Chai Wala Franchise’s business model operate?
The MBA Chaiwala franchise operates on a business model that is focused on providing a unique tea drinking experience to customers. The brand has become popular across India due to its focus on quality tea offerings, unique branding, and excellent customer service.
The franchise business model involves the franchisee investing in the MBA Chaiwala brand and setting up a store that adheres to the brand’s guidelines and standards. The franchisee is granted the right to use the MBA Chaiwala name, logo, and branding in exchange for an initial franchise fee and ongoing royalty fees.
Initial Franchise Fee
The initial franchise fee for the MBA Chaiwala franchise is Rs. 3 lakh. This fee includes the cost of training, marketing support, and branding materials provided by the franchisor. The franchisee is also provided with a comprehensive operations manual that outlines the standards and procedures to be followed when setting up and operating a store.
The franchisee is required to pay an ongoing royalty fee of 8% of gross sales to the franchisor. This fee covers ongoing support, training, and marketing initiatives provided by the franchisor to help the franchisee succeed in their business.
The location of the store is an important factor in the success of the franchise. The franchisor provides the franchisee with a set of criteria that must be met when choosing a location. The criteria include factors such as foot traffic, visibility, accessibility, and the target audience. The franchisor provides support in selecting the location and negotiating the lease agreement.
Store Setup and Design
The franchisee is required to set up the store according to the MBA Chaiwala brand guidelines. The franchisor provides support in store design, layout, and equipment selection. The store must have a unique and attractive design that reflects the MBA Chaiwala brand identity. The store must also meet the standards for cleanliness, hygiene, and safety.
Product and Service Offering
The franchisee is required to offer the products and services that are specified by the franchisor. The MBA Chaiwala franchise specializes in tea and offers a range of tea blends, snacks, and beverages. The franchisor provides support in selecting the product range and sourcing suppliers. The franchisee is also required to adhere to the standard recipes and preparation procedures specified by the franchisor.
Training and Support
The franchisor provides training and support to the franchisee in various areas of business management, including store operations, product preparation, inventory management, staff management, and customer service. The training is provided through classroom sessions, on-the-job training, and online resources. The franchisor also provides ongoing support through field visits, phone support, and online resources.
Marketing and Promotion
The franchisor provides marketing and promotional support to the franchisee, including advertising campaigns, social media marketing, and branding materials. The franchisee is required to allocate a marketing budget and execute the marketing plan effectively. The franchisor provides branding guidelines and materials that must be followed by the franchisee.
Cost and Fees associated with MBA Chaiwala Franchise:
MBA chai wala franchise can cost around INR 8 to 10 Lakhs. We can break the total Franchise cost as below mentioned:
|Investment||Rs. 8-10 lakhs (including Equipment)|
|Franchise Fee||Rs. 3 lakhs|
|Shop Cost||INR 2 – 5 Lakhs|
|Other Cost||INR 1 – 2 Lakhs|
|AGREEMENT TENURE||3 YEARS|
Cost For Opening MBA Chai wala Franchise
Your choice of city and location for opening the outlet will determine the shop rent, maintenance fee, and additional expenses. The city and region affect shop costs, maintenance costs, additional expenses, and other costs. To begin with MBA chai wala, you must invest at least INR 10 Lakhs.
Profit potential of MBA Chaiwala Franchise:
One of the key factors that potential franchisees consider when investing in a business is the profit margin. Profit margin refers to the percentage of revenue that a business keeps as profit after deducting the cost of goods sold and operating expenses.
When it comes to the MBA Chaiwala franchise, the profit margin can vary based on several factors such as location, competition, operational costs, and pricing. However, generally, franchisees can expect a profit margin of 15% to 20% of gross sales.
The gross sales of a MBA Chaiwala franchise can vary based on factors such as the location of the store, the target audience, the products and services offered, and the marketing and promotion of the store. However, on average, a MBA Chaiwala franchise can expect to generate a gross revenue of around 20 lakh rupees per month.
Benefits of opening MBA Chai Wala Franchise
Opening a MBA Chai Wala franchise offers several benefits for aspiring entrepreneurs. Here are some of the key benefits of opening a MBA Chai Wala franchise:
- Established Brand Name and Reputation
MBA Chai Wala is a well-known brand across India, thanks to its focus on providing high-quality tea and unique branding. As a franchisee, you will be able to leverage the brand’s established reputation to attract customers to your store. This can be especially beneficial for those who are new to the business world and may not have the experience or resources to establish their own brand.
- Proven Business Model
The MBA Chai Wala franchise has a proven business model that has been refined over years of operation. The franchisee is provided with comprehensive training and support, including an operations manual that outlines the standards and procedures to be followed when setting up and operating a store. The franchisor also provides ongoing support, including marketing and promotional initiatives, to help the franchisee succeed in their business.
- Lower Risk
Starting a new business from scratch can be risky, as there is no guarantee of success. By contrast, opening a MBA Chai Wala franchise reduces the risk for the franchisee. The franchisee is provided with a comprehensive set of guidelines and support, which can help to mitigate the risks associated with starting a new business. The franchisor also provides ongoing support, which can help the franchisee address any issues that may arise.
- Support and Training
MBA Chai Wala provides comprehensive support and training to franchisees, including classroom sessions, on-the-job training, and online resources. The franchisor also provides ongoing support through field visits, phone support, and online resources. This can be especially beneficial for those who are new to the business world and may not have the experience or resources to start a business on their own.
- Marketing and Promotional Support
MBA Chai Wala provides marketing and promotional support to franchisees, including advertising campaigns, social media marketing, and branding materials. The franchisee is required to allocate a marketing budget and execute the marketing plan effectively. The franchisor provides branding guidelines and materials that must be followed by the franchisee. This can be especially beneficial for those who may not have experience in marketing or advertising.
- Profit Potential
Opening a MBA Chai Wala franchise offers decent profit potential. The franchisee is required to pay an initial franchise fee and ongoing royalty fees, but this is offset by the support and resources provided by the franchisor. The franchisee is also able to leverage the established brand name and reputation to attract customers and generate revenue.
Opening a MBA Chai Wala franchise offers flexibility in terms of location and store design. The franchisee is provided with a set of criteria that must be met when choosing a location, but has the flexibility to choose a location that meets those criteria. The franchisor also provides support in store design, layout, and equipment selection, but the franchisee has the flexibility to customize the store to their liking.
MBA Chaiwala Franchise Requirements
The MBA Chaiwala franchise has specific requirements to ensure that the franchisee is able to meet the standards of the brand and provide customers with quality products and services. Below are the requirements to become an MBA Chaiwala franchisee:
- Financial Requirements: The MBA Chaiwala franchise requires a minimum investment of Rs. 7 to 10 lakhs depending on the location of the store. The franchisee must have sufficient funds to cover the initial investment, franchise fees, and ongoing operating costs. The franchisee must also provide proof of financial stability and the ability to finance the business.
- Location Requirements: The MBA Chaiwala franchise has specific location requirements to ensure that the store is located in a high traffic area with a target audience that would appreciate the brand and its offerings. The franchisee must have a commercial space of at least 100 to 300 square feet, preferably on the ground floor with good visibility and accessibility.
- Training Requirements: The MBA Chaiwala franchise provides training and support to franchisees to ensure that they have the necessary skills and knowledge to operate the store effectively. The franchisee and their staff must complete the training program provided by the MBA Chaiwala franchise.
- Operational Requirements: The franchisee must ensure smooth operational management of the store, including inventory management, staff training, and customer service. The MBA Chaiwala franchise provides support in this area, but the franchisee must have the necessary skills and experience to manage the store effectively.
- Marketing Requirements: The MBA Chaiwala franchise provides marketing support and branding guidelines to franchisees. The franchisee must execute the marketing plan effectively to promote the store and attract customers.
- Franchise Agreement: The MBA Chaiwala franchise requires the franchisee to sign a franchise agreement that outlines the terms and conditions of the franchise, including the franchise fees, operating costs, and other requirements.
- Legal Requirements: The franchisee must comply with all legal requirements, including obtaining necessary permits and licenses, and adhering to all laws and regulations related to the operation of the store.
How to Apply for MBA Chaiwala Franchise:
To apply for an MBA Chaiwala franchise, the interested individual must follow these steps:
Step 1: Visit the official MBA Chaiwala website and fill out the franchise application form. The form requires basic information such as name, email address, phone number, and location.
Step 2: After submitting the application form, the MBA Chaiwala franchise team will review the application and contact the applicant for further discussion.
Step 3: The applicant must attend a franchise orientation meeting with the MBA Chaiwala team. During this meeting, the franchisee will learn about the franchise business model, the franchise agreement, and the support provided by the company.
Step 4: After completing the orientation meeting, the franchisee must submit the necessary documents such as identity proof, address proof, and financial documents.
Step 5: Once the franchise agreement is signed, the franchisee can start the store setup process, which includes finding a suitable location, setting up the store, and hiring staff.
Contact Details of MBA Chaiwala
Karishma Complex, Shop – 2, Stadium Cross Rd, below Pintoo Garment, Navrangpura, Ahmedabad, Gujarat 380009.
MBA CHAI WALA franchise Contact Number –
+91 722 290 5222
Website – mbachaiwala.com
Franchise – https://www.mbachaiwala.com/franchise/
The MBA Chaiwala franchise is an attractive business opportunity for those interested in owning a tea shop or cafe. With its unique branding, quality tea offerings, and excellent customer service, it has become a popular brand across India. The cost and fees associated with the franchise are reasonable, and the franchisee can expect to earn a decent profit. However, before investing in the franchise, it is important to consider various factors such as location, competition, marketing, and operational management.
FAQs Of MBA Chaiwala franchise
What is the initial franchise fee for a MBA Chaiwala franchise?
The initial franchise fee for a MBA Chaiwala franchise is Rs. 5 lakhs.
What are the ongoing royalty fees for a MBA Chaiwala franchise?
The ongoing royalty fee for a MBA Chaiwala franchise is 7% of the monthly gross revenue generated by the store.
How much does it cost to set up a MBA Chaiwala franchise?
The total cost of setting up a MBA Chaiwala franchise depends on various factors such as location, size of the store, and equipment required. On average, the total cost ranges between Rs. 10-15 lakhs.
What kind of support does MBA Chaiwala provide to its franchisees?
MBA Chaiwala provides comprehensive support to its franchisees, including training and support for store setup, marketing and promotional support, ongoing operational support, and access to online resources and tools.
How can I apply for a MBA Chaiwala franchise?
To apply for a MBA Chaiwala franchise, you can visit the company’s website and fill out the franchise application form. You will need to provide details such as your name, location, experience in the food and beverage industry, and financial details. Once your application is reviewed and approved, you will be contacted by the company’s franchise team to proceed with the next steps.