Chhaswala Franchise Cost in India: Model, ROI, Eligibility & How to Apply

Chhaswala is a popular dairy-based beverage and snack franchise founded in 1994 by Savitaben Patel, later led by her son Jatin Patel. With 150+ outlets across Gujarat and Maharashtra, the brand offers refreshing chaas, lassi, shakes, and regional snacks in a quick-service format.

It provides two franchise models:

• FOFO (Franchise-Owned, Franchise-Operated)
• FICO (Franchise-Invested, Company-Operated, master/area franchise)

💸 Investment & Cost Breakdown

Here’s a summary of investment estimates from reliable sources:

Item	FOFO Model	FICO Model
Space Required	200–300 sq ft	200–500 sq ft
Franchise Fee	₹2.5 Lakh (one-time)	₹10–15 Lakh
Setup + Infra	₹11–13 Lakh	Included in total ₹70–90 Lakh investment
Equipment & Inventory	₹2–5 Lakh	Part of higher total in FICO
Working Capital	₹3–5 Lakh	Included in FICO model
Total Investment	₹15–16 Lakh	₹70–90 Lakh

• FOFO: Minimal capital outlay—ideal for single-unit entrepreneurs.
• FICO: Higher investment, company manages operations—suitable for experienced multi-unit investors.

2. 🔄 Franchise Model & Fees

FOFO Model

• Franchisee pays ₹2.5 Lakh upfront.
• Ongoing royalty: 2% only if revenue exceeds ₹1 crore annually.
• Agreement tenure: 10 years.

FICO Model

• Franchisee invests ₹70–90 Lakh; Chhaswala handles operations.
• Terms: 4–10 years depending on territory.

3. 📈 Expected Revenue & ROI

FOFO Model:

• Gross margin: ~27%.
• Net margin: ~10–12% after expenses.
• Monthly revenue: ₹5 Lakh approx.
• Monthly profit: ₹50,000–₹60,000 .
• Payback time: 12–24 months .
• ROI: ~20–27% annually .

FICO Model:

• ROI involves profit-sharing and quarterly paybacks.
• Though capital-intensive, suitable for scaling multi-unit operations.

4. ✅ Eligibility Criteria

Ideal franchisee profile:

• Investment readiness: ₹15–16 Lakh (FOFO) or ₹70–90 Lakh (FICO).
• Space: 200–300 sq ft (FOFO); 200–500 sq ft per unit (FICO).
• Location: High-footfall areas like malls, colleges, offices.
• Staffing: 1–4 team members for FOFO .
• Legal compliance: GST, FSSAI, trade license, etc..
• Business aptitude: Enthusiasm and basic managerial skills .

5. 🛠️ Brand Support & Onboarding

Chhaswala supports franchisees thoroughly:

• Training: Operational SOPs and customer service.
• Setup guidelines: Design, equipment specs, recipe standardization.
• Marketing aid: Local advertising support.
• Ongoing assistance: Area support, refresher training.
• Typical setup timeframe: 1 month from approval to opening.

6. ⚖️ Pros & Cons

Pros

✔ Low initial capital for FOFO
✔ Strong net margins (10–12%) and quick payback (12–24 months)
✔ Popular product mix (chaas, lassi, shakes)
✔ Operational simplicity with no chefs, quick-service format

Cons

✘ Margin compression on low sales
✘ Customers expect consistent quality quickly
✘ High footfall dependence
✘ Royalty kicks in above ₹1 crore turnover in FOFO model

7. 📝 Steps to Apply

• Online enquiry: Visit official Chhaswala franchise site or contact via phone/email.
• Application form: Submit business profile, financials, license proofs.
• Site selection: Brand evaluates your chosen location.
• Agreement signing: 10-year FOFO or 4–10-year FICO contract.
• Payment: Franchise fee & deposit.
• Store setup & branding: Follow guidelines, mapping & equipment installation.
• Training: Attend brand-led training.
• Launch: Soft opening with support, grand launch with promotions.

8. 🚀 Tips & Warnings

• Visit existing outlets: Gauge performance and customer base.
• Check P&L projections: Based on ₹5 Lakh monthly sales.
• Lease wisely: Avoid overpaying for location.
• Ask about royalties: Only applied post ₹1 crore revenue for FOFO.
• Vet the brand’s track record: Speak with current franchisees for feedback.

🧭 Final Verdict

The Chhaswala FOFO franchise offers a low-risk entry into F&B with reasonable investment (~₹15–16 Lakh), solid profit potential (₹50k/month), and speedy payback (1–2 years). The FICO model suits investors aiming for multi-unit business, though with much higher capital outlay.

If you’d like guidance on P&L modelling, site selection in Delhi/NCR, or preparing franchise applications and negotiating agreements, I’m here to help your Chhaswala investment journey succeed!

⭐ Reddit Insights

“Chaswala franchise works! They provide franchises under 20 lacs.”

“Franchising should be avoided…they do not offer much help and take a lot of cut in profits.”

Franchise ownership offers brand and support—but demands careful financial and location planning.