Khetla Aapa is one of the most famous tea franchises in Gujarat. We will discuss Khetla Aapa Tea Franchise Cost, Profit, Review and How to start the outlet.
The making of the Tea is very unique as compared to other Teas. People specially visit the outlet to see the making of their Tea.
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Khetla Aapa Tea Franchise Cost
Khetla Aapa Tea Franchise cost 13 Lakh Rupees as an initial investment. The franchise fee differs according to the location of the franchise.
The franchise fee for Tier 1 cities is 5 Lakh Rupees. For Tier 2,3 cities, the franchise fee is 2.5 Lakh Rupees. The Franchise Fees is 1 Lakh Rupees for Village or Rural Areas.
Let’s see the Bifurcation of the Investment-
|Franchise Fee||5,00,000 Rupees|
|GST on Franchise Fee||90,000 Rupees|
|Security Deposit (Refundable)||3,00,000 Rupees|
|Setup Cost||2,00,000 Rupees|
|Interior and Civil Work Cost||1,30,000 Rupees|
|Initial Raw Material||30,000 Rupees|
|Other Expenses||50,000 Rupees|
|Total Investment||13,00,000 Rupees|
- The franchise agreement is of 2 Years
- The minimum area required is 300 Square Feets
- The Royalty is fixed as 10,000 Rupees
- Raw Material will be provided by the franchisor
- The cost of the Tea is 15 Rupees each
- You can hire the the tea makers from the franchisor itself or sent your worker for training.
- The cost of tea maker offered by the franchisor is 15,000 Rupees per worker + their living expenses.
Khetla Aapa Tea Franchise Profit
Let’s analyze Khetla Aapa Tea Franchise Profit Margin with the help of an example.
We are assuming that the Sales of the Franchise is 450 teas per day i.e. 6750 Rupees per day. The monthly Sales accordingly will be 2,00,000 Rupees per month.
We will deduct all the expenses from gross sales to get the net profit of the franchise-
|Particulars||Amount per Month|
|Gross Sales||2,00,000 Rupees|
|Raw Material @45%||(90,000) Rupees|
|Salary of Workers (2)||(30,000) Rupees|
|Electricity and Water Supply||(10,000) Rupees|
|Other Expenses||(5,000) Rupees|
|Net Profit||30,000 Rupees|
We can conclude that Khetla Aapa Franchise Profit Margin is 15% for the Sales of 2 Lakh Rupees. The reason for the higher profit margin is that the price of the Tea is 15 Rupees.
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. A corner shop is the most preferable option.
You can open the outlet nearby colleges, corporates, Malls, Highway or any place where people love to have Tea.
Khetla Aapa Franchise Review
It is not essential that an outlet with a great local brand will definitely become a successful franchise business. In my opinion, The franchise model of Khetla Aapa is one of the examples.
The website is not properly optimized, the franchise support is very unprofessional, no expenses on marketing, bad management. The franchisor just has a good brand name in Gujarat.
They will just provide the training to the workers and raw material to their franchises. The recipe is not everything to run a successful franchise.
Franchise Fee and Royalty charged is very high for Tier 1 cities. The franchise agreement is only 2 years. So you have to pay the franchise fee again after 2 years. Normally it’s 5 years in every franchise.
The tea price is expensive according to the quantity of the tea. The tea is offered in a small paper cup.
Not a comparison but other branded franchises are giving higher value in less investment.
The tea flavour is unique from other Tea franchises. The quantity of milk in the tea is very high.
If you are planning to have the franchise in Gujarat then the Khetla Aapa Franchise is highly recommendable. Otherwise, the franchise is not recommendable from my side.
How to start Khetla Aapa Franchise
To start the Khetla Aapa Franchise, you have to fill out the form given below then we will allot you a franchise specialist who will guide you the best.
Thanks for reading the blog, If you have any queries regarding the franchise then you can ask me in the comment box or on my
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