Ajay’s Cafe Franchise Cost: Model, ROI, Eligibility Criteria & Steps to Apply 2025 Guide

Ajay’s Cafe (also known as Ajay’s Takeaway Food or Ajay’s Good Food), headquartered in Gujarat and founded in 2014 by the Solanki brothers, has evolved into one of India’s rapidly expanding Quick Service Restaurant (QSR) franchises. With over 160–165 outlets across 42 cities in Gujarat as of mid‑2024, and ambitious plans for pan‑India growth, Ajay’s offers a remarkably affordable, low-risk franchising model with swift returns and strong brand backing.

Investment Overview: What Does It Cost?

₹10–20 Lakhs (₹15 Lakhs typical)

• FranchiseIndia lists an investment range of ₹10–20 lakhs, covering all setup, equipment, working capital, and outlet launch costs. It further clarifies that the brand charges no franchise fee, no royalty, no security deposit.
• FranchiseBazar estimates investment at ₹15 lakhs on average (around ₹7 lakhs excluding shop deposit) to cover setup, initial stock, and working capital. It underlines the complete absence of franchising fees and royalties.
• Smergers converts that into USD, estimating USD 9.1k–11.4k (~₹8–10 lakhs), with 0 royalty, brand fees, or deposits.

Ultra-Low “Commitment Fee” Model

• Ajay’s own blog mentions a “COFO” model (Company‑Owned, Franchise‑Operated) requiring as little as ₹1 lakh commitment fee. This extremely low entry is for very lightweight format models supported fully by the brand in setup, POS, branding, training, logistics, etc.

Summary Table

Format	Estimated Total Investment	Franchise Fee	Royalty	Space Required	Payback Period
Standard outlet	₹10–20 Lakhs (₹15L avg)	₹0	₹0	≈ 400 sq. ft.	12–18 months
Minimal COFO format	₹1 Lakh commitment fee only	Included	₹0	~150–200 sq. ft.	Rapid / promotional

Scope of Setup & Brand Support

Despite low financial barriers, Ajay’s doesn’t skimp on operational support:

• Full outlet turnkey setup including interior, billing, kitchen, and POS — provided and installed by the brand.
• Training and field assistance from head office, plus operating manuals covering training, staffing, logistics, and operations.
• Marketing and ongoing brand support without any royalty, enabling franchisees to keep full profitability while leveraging brand advertising and promotions.

Profitability & Return on Investment

Ajay’s promises strong unit economics, ideal for first‑time entrepreneurs in QSR:

• Profit margins around 25% on net sales, with monthly net profits typically ₹1–2 lakhs.
• Payback period ranges from 12 to 18 months, depending on location, sales volume, and operating discipline.
• Expected ROI can be 40% yearly as per FranchiseIndia calculations.

These financial metrics are highly attractive — especially since you commit to no royalty, no brand fees, and minimal risk.

Outlet Size & Ideal Locations

• Most standard outlets require 400 sq. ft. including kitchen, counter, and customer space.
• The COFO format can operate in 150–200 sq. ft. with correspondingly lower investment.
• Ajay’s focuses on high-footfall areas: markets, malls, busy roads, near educational institutions and offices. Urban and semi-urban areas are preferred.

Eligibility & Ideal Candidate

• Franchisees are typically required to be 21 years or older with minimum PUC (12th grade) education. Prior experience in food or retail is advantageous but not mandatory, as training is provided.
• Financial viability is essential – access to liquidity for ₹15 lakh investment or at least ₹1 lakh for COFO is a prerequisite.
• Ajay’s gives preference to entrepreneurs committed to business growth, and able to manage a small team of 3–5 staff.

Why Entrepreneurs Are Choosing Ajay’s Cafe

1. Low entry barrier: Investment as low as ₹10 lakh (or ₹1 lakh in certain models), with no franchise fees or royalty.
2. Fast ROI: Payback expected in 12–18 months.
3. Strong margins: ~25% profit on sales, with monthly net profits of ₹1–2 lakhs.
4. Turnkey support: Setup, training, marketing, and supply chain assistance included.
5. Flexibility: 1‑year renewable agreements offer autonomy.
6. Proven track record: Growing from one outlet in Navsari in 2014 to ~165 outlets by end‑2024. Ambitious expansion plan to cross 500 outlets by 2025.

Key Considerations

• Competition: QSR space in India is vibrant—with local and national players like Burger King, McDonald’s, local burger chains, and many café chains. Your location strategy and product quality will be crucial.
• Lease / shop deposit: While franchise fees are nil, you may need to shell out for rent/security deposit—often not included in the ₹15 lakh estimate.
• Operational discipline: Routine oversight, inventory control, and staff management are essential for maintaining margins.
• Localization: Ajay’s menu staples like cold coffee, burgers, pizzas, milkshakes, and fries are localized. Adapting to local tastes while preserving brand identity matters.

Steps to Launch Your Ajay’s Franchise

1. Research & Due Diligence: Validate costs and logistics in your city, and ask the brand for audited financials of existing outlets.
2. Apply via Ajay’s official portal or through trusted platforms like FranchiseIndia or Smergers.
3. Site selection: Identify a high-footfall location (~150–400 sq. ft.), in consultation with their franchise team.
4. Agreement & documentation: Sign the one-year contract with renewal options; legal review recommended.
5. Setup & training: Allow Ajay’s team to execute fit‑out; attend in-person training and open with pre‑marketing support.
6. Launch & manage operations with ongoing guidance from Ajay’s HQ, plus supply logistics support.

Conclusion

The Ajay’s Cafe franchise presents one of India’s most affordable, low-risk, and fast-return QSR options today. With a transparent model—no franchise fees, no royalties, and complete brand support—it democratizes access to the food franchise sector. Whether you’re investing ₹1 lakh via their commitment-fee COFO model or ₹15 lakh for a full-fledged outlet, Ajay’s offers strong profitability (~25% margins), a quick ROI (12–18 months), and a proven growth blueprint.

Entrepreneurs with modest capital, minimal prior experience, and a drive to operate in the food business will find Ajay’s Cafe an alluring opportunity. Interested parties should connect directly with Ajay’s Good Food or trusted franchise platforms, conduct thorough due diligence, and position themselves early in Ajay’s trajectory before volumes reach national scale. With their plan to hit 500 stores by 2025, the time to act might be now.