Xero Degrees Franchise is one of the best cafe franchises in India. We will discuss Xero Degrees Franchise Cost, Profit, and How to get the franchise.
Xero Degree was awarded as the best cafe franchise in Delhi and NCR. Xero Degree currently has 50+ outlets PAN India. The USP of the Xero Degrees Franchise is its great and unique food at very affordable prices.
Table of Contents
Xero Degrees Franchise Cost
Xero Degrees Franchise Cost ₹60,00,000 Rupees as an initial investment according to the business model. The Franchise Fee is ₹15,00,000 Rupees+GST. The minimum area required is 1000 Square Feets. The Royalty charged will be 8%+GST on Sales.
The bifurcation of the Cost is given below-
|Particulars||Amount (Cafe Model)|
|Franchise Fee||15,00,000 Rupees|
|18% GST on Franchise Fee||2,70,000 Rupees|
(Interior, Furniture, Machinery)
|Advance Raw Material||1,30,000 Rupees|
(POS, Admin, Misc)
|Total Investment||60,00,000 Rupees|
- The Agreement will be of 5 Years
- Training will be provided for free
- Raw Material will be provided
- Online Marketing and Support will be provided
Xero Degrees Franchise Profit
We will analyze the Xero Degrees Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 6,00,000 Rupees i.e. 20,000 Rupees per day approximately.
|Gross Sales||6,00,000 Rupees|
|Cost of Material @40%||(2,40,000) Rupees|
|Electricity and Water Supply||(20,000) Rupees|
|Salary of Workers and their Expenses||(90,000) Rupees|
|Royalty @8%+GST||(50,000) Rupees|
|Aggregator Commission @25% |
(for 1 Lakh Rupees Sales)
|Other expenses||(15,000) Rupees|
|Net Profit||1,00,000 Rupees|
We can conclude that the Profit Margin of the Xero Degrees Franchise is 17% for the Sales of 6,00,000 Rupees. The outlet may have less profits in the initial days but fast food have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 9 Lakh Rupees per month and the profit margin will be 30% on Sales or 3,00,000 Rupees as Profit.
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 have Snacks and Chaat.
How to get Xero Degrees Franchise?
To get the Xero Degrees Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
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