How to Start Tealogy Franchise: Cost, Profit, Review

Tealogy is a Quick Service Tea Cafe. We will discuss Tealogy Franchise Cost, Profit and its Honest Review.

Tealogy Franchise has 90+ outlets across India. The USP of Tealogy is their flavoured Teas. Along with tea, Tealogy offers items like Pizza, sandwiches, burgers, Beverages, Shakes, and many more in their menu.

You can directly enroll for the Tealogy Franchise by filling up the Google Form.

Table of Contents

Tealogy Franchise Cost

Tealogy Franchise cost 15-18 Lakh Rupees as Initial Investment. The franchise fee is not fixed but they told me 5,50,000 Rupees for Delhi.

Tealogy Franchise has 2 types of Franchise Models- The kiosk Model and the Dine-In Model. The minimum area required is 100 Square feets and 300 Square Feets respectively. The cost will increase if the area increases. The bifurcation of the investment is given below-

Particulars	Amount for Kiosk Model	Amount for Dine-In Model
Franchise Fee	5,50,000 Rupees	5,50,000 Rupees
GST on Franchise fee	99,000 Rupees	99,000 Rupees
Machinery and Kitchen Utensils	3,20,000 Rupees	3,20,000 Rupees
Furniture, Interior, Exterior	3,00,000 Rupees	4,20,000 Rupees
Advance Raw Material	1,50,000 Rupees	1,50,000 Rupees
Opening Ceremony	40,000 rupees	40,000 Rupees
Other Expenditures	23,000 Rupees	53,000 Rupees
Total Investment	15,00,000 Rupees	16,50,000 Rupees

The Franchise agreement is of 5 years
The Royalty charged is fixed as 10,000 Rupees per month from the 2nd month of starting the franchise
Raw Material will be provided by the franchisor and through contracted vendor
Training will be provided at company outlets

Tealogy Franchise Profit

We will analyze the Tealogy Franchise profit margin with the help of an example. The net profit will be calculated after deducting rent, electricity, royalty, Salary of employees, Raw Material and other expenses.

So I am taking an example if the total Sales every month is 240,000 Rupees i.e. 7,000 Rupees daily-

Particulars	Amount per Month
Gross Sales	3,00,000 Rupees
Raw Material @50%	(1,50,000) Rupees
Rent	(40,000) Rupees
Electricity and Water Supply	(10,000) Rupees
Salary of Employees	(50,000) Rupees
Aggregator Commission	(5,000) Rupees
Royalty	(10,000) Rupees
Other Expenses	(5,000) Rupees
Net Profit	30,000 Rupees

Tealogy Franchise profit margin is 10% for the Sales of 3,00,000 Rupees.

We can conclude that after great local marketing, the profit margin of this franchise for the sales of 5 Lakh Rupees will be 20%

Location plays the most important role in determining the Sales of the franchise. Try to open the outlet where the footfall is very high especially considering the target audience that is corporates and students.

The Return on Investment is a minimum of 2-3 years according to the profit margin of the franchise.

Tealogy Franchise Review

There are a few problems with the Tealogy Franchise. Tea is a very highly competitive market and its competitors are Chai Sutta Bar and MBA Chai Wala who already have a great brand name and digital presence.

There is no product differentiation so why will someone prefer Tealogy Franchise over already established great brands?

The price of Tealogy Tea is 12 Rupees whereas other Tea brands offer it for 10 Rupees. It’s clear that anyone will definitely prefer Chai Sutta Bar or MBA Chai Wala over Tealogy.

The investment is almost equal but the Royalty they are charging is very high. The franchise fee is not even revealed, it is contingent on the basis of the location and outlets. The franchisor is even ready for negotiations in the franchise fee that shows a bit of unprofessionalism by offering a different amount of Franchise Fee for different people.

The franchise is more focused on expansion through Franchise Model rather than building a great brand in a particular State. They are doing good in some states but their Franchise Fee and Royalty do not match the brand value.

There is no intention to demean any franchise but to show a clear picture of the market. May the franchise will take it as positive feedback. This is my personal opinion as a franchise specialist.

I am not answering regarding the recommendation to take this franchise or not. But if a Tealogy Franchise is doing great nearby your locality then you can definitely go for the franchise.

There are many things that I liked are that their name is engraved on every kulhad (something unique) and their tagline is very appealing- “Yaar Mera Kulhad”.

Interior plays a very important role when it comes to tea and Talks. The interior of Tealogy is the best among the three franchises. There is minimum self-branding. The second best is Chai Sutta Bar.