ChaaYos Franchise Cost in India: Franchise Model, ROI, Eligibility Criteria & Steps to Apply

Founded in 2012 by IIT-Delhi alumni Nitin Saluja and Raghav Verma, ChaaYos transformed India’s beloved roadside chai into a premium, personalized café experience—”Meri Wali Chai”—with over 200 outlets and a current valuation exceeding ₹2,600 cr.

Key strengths include:

• Hyper‑personalization: 25 tea bases with 12,000+ flavor combinations.
• Premium vibe: Hygienic, climate-controlled spaces with digital kiosks and kulhads.
• Tech-enabled ops: Centralized kitchens and AI-based inventory/staff optimisation.

ChaaYos Franchise Cost & Funding Snapshot

Component	Estimated Cost (₹ INR)
Franchise Fee	1,00,000
Infrastructure & Fit-out	5–10 lakh
Total Initial Investment	6–11 lakh
Royalty / Revenue Share	5% to ChaaYos (Franchisee retains ~95%)
Break-even / ROI Timeline	~1 year

• Franchise Fee: Rs 1 lakh grants usage of the brand, tech, and men.
• Infra Investment: Covers lease, interiors, kitchen, equipment—estimated ₹5–10 lakh.
• Royalty: Franchisees keep ~95% of revenue and pay a ~5% royalty monthly.
• ROI: Many franchises report operational break-even and profitability within 12 months.

💡 Note: Infra investment varies based on location, outlet size (typically 200–400 sq.ft), and fit-out standards.

Franchise Model & Support Ecosystem

Snapshot of ChaaYos Franchise System:

• Unit Size: 200–400 sq.ft; seating optional.
• Staff: 2–5 employees per outlet.
• Facilities: Mandatory AC, CCTV, POS system & internet, delivery tie‑ups.
• Term: 5-year contract.
• Support Includes:
  • Menu planning/pricing
  • Interior design & outlet set-up
  • Training staff in tea standards & service
  • Relationship Manager for operations
  • Business software & POS support
  • Online/delivery integration
  • Marketing collateral (local/outlet-level; limited digital support)

Marketing campaigns are soft-touch: outlet branding, local promos, occasional digital / event tie‑ups.

Eligibility Criteria: Who Qualifies?

To become a ChaaYos franchisee, aspirants should meet:

1. Financial Capacity: Around ₹10 lakh readily available for capex + reserve for 6–8 months’ OPEX (rent, wages, utilities).
2. Business Aptitude: Experience in retail/HORECA is beneficial.
3. Location Savvy: Ability to scout/popular high-footfall areas.
4. Brand Fit: Commitment to consistent quality, hygiene, and customer-first orientation.

ROI Estimate & Financial Outlook

• Revenue Share: Franchisees retain ~95%, with only ~5% royalty.
• Breakeven: Typically within 12 months with strong sales.
• Margins: Depending on outlet metrics, franchisees can see robust profit margins, especially in prime locations.

Step-by-Step: How to Apply

1. Research & Enquiry
   Visit ChaaYos website or contact via franchise portals like FranchiseByte/FranchiseGuru.
2. Initial Screening
   Share your financials, location proposal, and business background.
3. Presentation & Site Assessment
   Pitch your vision; ChaaYos team assesses demographic fit and foot traffic.
4. Franchise Agreement
   Sign a 5-year agreement; pay ₹1 lakh franchise fee.
5. Site Set-Up
   Fit-out begins under brand guidelines—often with vendor coordination.
6. Training & Launch
   Staff training, POS integration, soft launch followed by grand opening.
7. Ongoing Support
   Operations RM, seasonal menu updates, tech/software support, and periodic marketing.

Pros & Cons for Investors

✔️ Pros

• Strong brand with premium positioning.
• High franchisee retention via ~95% revenue share.
• Turnkey support: training, technology, operations.
• Scalable brand with national presence.

❌ Cons

• Capex-intensive upfront (especially in metros).
• Royalties may impact flexibility in pricing/promos.
• Limited digital marketing support from HQ.
• Competition from other chai QSRs (e.g. Chai Point, Chai Tapri).

Comparison with Other Tea Franchises

Brand	Investment	Area	Royalty	Break-even
ChaaYos	₹6–11 lakh	200–400 sq.ft	5%	~1 year
Chai Point	₹25–30 lakh	600–800 sq.ft	–	–
Chai Calling	₹4–5 lakh	100–200 sq.ft	–	–

(Note: Limited brands offer direct royalty comparators; ChaaYos’ low royalty and strong brand appeal make it a standout.)

Final Take: Is ChaaYos a Smart Franchise Bet?

Yes—if you’re ready for a moderate capex, brand-aligned management, and quick ROI:

• Brand equity and customer loyalty driven by personalization.
• Rapid ROI thanks to 95% revenue retention.
• Strong support system for site setup, training, and tech.
• Scalability in both metro and Tier‑II/III markets.

Applying the Learnings: Your Checklist

• Allocate ₹6–11 lakh (₹1 lakh fee + ₹5–10 lakh setup).
• Secure a 200–400 sq.ft high-footfall space.
• Ensure team training in service, hygiene, and menu.
• Plan for break-even in 12 months with ~5% royalty.
• Use provided tech and delivery tie-ups to boost sales.

Conclusion

ChaaYos offers a compelling franchise opportunity in India’s tea QSR space. Their successful blend of personalized offerings, digital-first operations, and profitable franchisee model—with low royalty—sets them apart. For investors who can commit both resources and passion, this franchise can deliver strong returns in under a year.