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Night Club Franchise Cost
Night Club Franchise Cost ₹1,00,00,000 Rupees to ₹7,00,00,000 Rupees as an initial investment according to the business model. The minimum area required is 5000 Square Feets. The Royalty charged will be 7%+GST on Sales.
- The franchisor will provide all the operational expertise but all cost for Implementation & running will be borne by the Franchisee.
- The franchisor will provide all the marketing & branding support but all cost for Implementation & running will be borne by the Franchisee.
- The concept of the restaurant & design will be taken care of by the franchisee but the contractual work & implantation on site will be taken care of by the franchisee.
- Breakeven of the F & B business of Clubs would be minimum of 1 Year.
Night Club Franchise Profit Margin
We will analyze the Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 36,00,000 Rupees i.e. 1,20,000 Rupees per day approximately.
|Net Sales (after GST)||36,00,000 Rupees|
|Cost of Material @30%||(10,80,000) Rupees|
|Utilities Cost||(1,50,000) Rupees|
|Salary of Workers and their Expenses||(5,00,000) Rupees|
|Royalty @7%+GST||(2,52,000) Rupees|
|Aggregator Commission |
(Dineout, Nearby, Zomato, Swiggy)
(for 10,00,000 Rupees Sales)
|Marketing and Events||(1,00,000) Rupees|
|Other expenses |
(Admin, Maintainance and Misc)
|Net Profit||7,50,000 Rupees|
We can conclude that the Profit Margin of the Night Club Franchise is 20.8% for the Sales of 36,00,000 Rupees. The outlet may have less profits in the initial days but Clubs have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 60 Lakh Rupees per month or 2 Lakh Rupees Sales per day. The profit margin will be 29% on Sales or 17,40,000 Rupees as Profit per month.
Disclaimer- Figures may change depending on the market conditions.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service. The location should have a very high footfall. It should be in the main market of that area. You can open the outlet nearby colleges, corporates, or any place where young people love to go to Clubs.
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