Kannu Ki Chai Franchise Cost in India: Model, ROI, Eligibility Criteria & Steps to Apply”

• Launched in Pune in 2016, Kannu Ki Chai expanded into a national tea café brand by 2023, with 40+ outlets across India.
• The brand boasts selling over one million cups of chai per month, offering a wide range of teas and 50+ snack varieties to attract varied customers.

💰 Franchise Investment & Cost Overview

Based on publicly available sources and verified listings:

Component	Estimate (₹ Lakhs)
Franchise Fee	12 L (₹12,00,000)
Setup & Interior	15–20
Total Investment Range	₹20–30 Lakhs
Shop Size Required	150–2,000 sq.ft (typical 500–1,500)
Royalty / Commission	~15% franchise share / 85% retained
Expected ROI	~35% annual return
Payback Period	12–24 months
Franchise Tenure	5 years, renewable

• FranchiseIndia shows franchise fee ₹12 L, total investment ₹20–30 L, area requirement from 150 to 2,000 sq.ft, revenue share of 85% to franchisee, with ~35% expected returns in 1–2 years. Agreement term is 5 years 😊
• BestFranchiseConnect similarly cites ₹20–30 L total setup, 85% revenue to franchisee, ROI in 1–2 years.
• AfterColleges gives a breakdown of ₹45 L total: ₹15 L franchise fee, ₹15 L setup, ₹10 L interiors, ₹1 L raw material, ₹1 L marketing, ₹3 L other. They claim no royalty; but this likely refers to fixed revenue share structure rather than no ongoing fee. They also estimate net margin ~25–30% with realistic monthly sales scenario and payback in under 2 years.

🏗 Kannu Ki Chai Franchise Models & Support Ecosystem

Formats Available

• Kiosk model (~250–500 sq.ft): minimal seating, ideal for high pedestrian zones or food courts.
• Container model: Portable setup for roadside locations or events.
• Café model (up to 1,500–2,000 sq.ft): Full-service tea café with seating, menu of teas, snacks, and curated ambience.

Support Provided by Franchisor

• Training: Comprehensive onboarding modules covering tea preparation, menu, customer service, operations and SOP adherence.
• Operations Manual: Recipes, product protocols, staff workflows.
• Design & Interiors: Guidance on layout, décor, seating, branding and signage.
• Supply Chain: Access to curated teas, packaged snacks and logistical support.
• Marketing: Brand-level social media, promotions, launch collaterals, and ongoing support.
• Field Assistance: Support during setup, opening, and periodic operational audits.

📈 Financial Potential & ROI Outlook

Revenue & Profitability

• Franchisee retains ~85% of gross revenues, paying ~15% commission to Kannu Ki Chai.
• Estimated margins: ~25–35% net profit, with higher efficiency and footfall sites at the upper end.

Payback & Returns

• Typical payback period: within 12–24 months, depending on location quality and operating discipline.
• ROI expectation: ~35% annual return on investment.

Example Scenario

• Gross sales ₹6 L/month (₹20K/day).
• High food cost @40% → ₹2.4 L
• Rent ₹0.9 L, salaries ₹0.75 L, utilities & misc ₹0.15 L → net profit ₹1.5 L (~25%).
• With efficient scale, this may rise to ₹9 L monthly turnover, pushing margins near 30% (~₹2.7 L net).

✅ Eligibility Criteria & Ideal Profile

Prospective franchisees should qualify on:

1. Financial capacity: ₹20–30 L upfront plus buffer for 3–6 months operations.
2. Outlet space: 250–1,500 sq.ft in high-footfall areas (malls, transit hubs, office zones).
3. Staffing: Team of around 10–15 employees depending on scale.
4. Background: F&B or retail experience helpful; customer service orientation essential.
5. Documentation: PAN, Aadhaar, GST, NOC/lease, shop approvals, license requirements (FSSAI etc.).
6. Operational alignment: Adherence to brand SOPs and quality standards.

📝 How to Apply: Step-by-Step

1. Submit Inquiry
   Fill the franchise enquiry form on Kannu Ki Chai’s official website or contact their franchise team via email or portals like FranchiseIndia or InvestInBrands.
2. Initial Screening
   Brand evaluates your business profile, location potential, investment readiness and alignment.
3. Site Evaluation
   Kannu Ki Chai team evaluates your proposed site for footfall, access, demographics and visibility.
4. Franchise Agreement
   Review contract terms: 5-year term (renewable), revenue share, operational obligations. Pay franchise fee (~₹12 L) and sign agreement.
5. Store Setup
   Build out interiors, equipment, seating, branding as per brand standard.
6. Training
   Owner/operator and staff complete training modules on operations, menu, customer service.
7. Soft Launch & Marketing
   Launch promotional events, local advertising, digital marketing per brand tools.
8. Ongoing Operations
   Brand provides periodic audits, marketing updates, product innovation support and operational guidance.

⚖️ Pros & Cons for Investors

✅ Advantages

• Established brand with national recognition and strong tea culture appeal.
• High franchisee revenue share (~85%) boosts profitability.
• Comprehensive support: from design to marketing to supply chain and training.
• Multiple formats suitable for budget or full café models.
• Fast ROI potential: Many outlets break even within 1–2 years.

❌ Considerations

• Upfront capital requirement (~₹20–30 L) may be high for micro entrepreneurs.
• Royalty / revenue share continues even during lean initial months.
• Operational overhead: staffing, rent, inventory control matter.
• Highly competitive segment—differentiation relies on location, service and consistency.
• Reddit threads caution that franchise businesses, especially tea, have high failure rates without adequate capital and disciplined operations—it’s often wiser to learn first independently before buying a franchise.

💡 Expert Suggestions Before You Invest

• Visit current outlets across formats to assess consistency, footfall, and service quality.
• Negotiate favorable lease terms and rent escalation caps.
• Understand contract details: renewal terms, exit clauses, supplier exclusivity, and commission terms.
• Build buffer capital for 3–6 months runway until stable sales.
• Talk to existing franchisees about real-world margins, supply adherence, and support responsiveness.

📌 Franchiseeer Checklist

• Investment: ₹20–30 L + working capital
• Space requirement: 250–1,500 sq.ft
• Staff: ~10–15 employees depending on café size
• Franchise fee: ₹12 L (approx), with 15% revenue share
• Agreement Duration: 5-year renewable contract
• ROI: 12–24 months
• Commitment to brand SOPs and quality protocols

🎯 Final Verdict

Kannu Ki Chai provides a credible tea café franchise opportunity with solid brand backing, structured support, and scalable formats. While the upfront investment is moderate to high person-to-person, the financial model—with up to 85% revenue retention and 25–35% net margins—allows ROI in 12–24 months for well-located outlets.