Chai Break Franchise Cost in India, Royalty Fees, Profit, Eligibility & More

Opening a Chai Break franchise can be a promising way to enter India’s fast-growing tea café business. With chai deeply rooted in Indian culture, branded chai outlets are gaining popularity among students, office workers, travellers, and casual customers. This guide covers everything you need to know — from cost to risks, FAQs, and the application process.

☕ Why Consider a Chai Break Franchise?

Tea (chai) is one of India’s most consumed beverages, enjoyed across regions, age groups, and income segments. Branded chai cafés like Chai Break tap into this culture by offering consistent taste, quality, and modern café experiences. A franchise can help you start with an established brand, standard operating procedures (SOPs), and customer trust.

💸 Investment Cost (INR)

Here’s a clear breakdown of typical costs involved in a Chai Break franchise:

🔎 Note: The range depends on outlet format (kiosk vs café), location, and city tier. High-footfall urban areas may cost more.

📊 Franchise Fee & Royalty

• Franchise Fee: ~₹2 lakh (one-time payment for rights to use the brand).
• Royalty: Around 4% of monthly net sales, paid regularly as per agreement.

These fees cover brand usage, ongoing operational support, and training. Always check the contract for GST, payment schedules, and any marketing levy.

🧮 Profit Margin & ROI

Profitability varies with location, rent costs, staffing, and sales volume. Typical projections for such chai cafés:

• Gross margins: Tea and beverages often have high ingredient margins (raw material cost low).
• Net profit: ~18–25% in early months; strong locations may achieve higher.
• ROI / Payback Period: 12–24 months typical depending on location and traffic.

👉 Avoid exaggerated income claims — real earnings depend on operations, costs, and local demand.

📍 Space & Manpower Requirements

Space

Prime locations (malls, office corridors, transit hubs) cost more but generally generate better footfall.

Manpower

• Staff: 4–6 persons initially (baristas, helpers).
• You may manage a small kiosk with fewer staff, but larger cafés require more hands for quality service

🤝 Franchisor Support

Good franchisors typically offer:

✔ Site feasibility and footfall analysis
✔ Store design & branding templates
✔ SOP manuals for service and hygiene
✔ Staff training & onboarding
✔ Supply chain support for tea & inventory
✔ POS system integration and billing
✔ Marketing launch support

Chai Break provides a structured support system to help franchisees open and operate successfully.

👍 Pros & 👎 Cons

✅ Pros

✔ Established brand — quicker customer trust
✔ Proven business model in chai segment
✔ Ongoing support from franchisor
✔ Strong demand for tea in India
✔ Multiple formats (kiosk/café) to suit budgets

❌ Cons

❗ High competition from local chai stalls and other branded franchises
❗ Royalty reduces net profit
❗ Food & beverage business requires hands-on operations
❗ Exit/transfer may involve conditions — read contract carefull

📋 Eligibility Criteria

To qualify for a Chai Break franchise, you should:

✔ Have investment capability of ~₹15–30 lakh.
✔ Secure or be able to lease suitable commercial space.
✔ Be committed to daily operations and customer service.
✔ Obtain PAN, GST, FSSAI, and shop/trade licenses.
✔ Have basic managerial skills or hire a manager.

📝 Application Process

Here’s a step-by-step guide:

1. Enquiry: Fill franchise enquiry form on the Chai Break website.
2. Initial Screening: Franchisor reviews investment readiness.
3. Site Visit & Approval: Brand team evaluates your proposed location.
4. Agreement & Fee: Sign contract and pay franchise fee.
5. Fit-Out & Setup: Interiors, equipment, POS installation.
6. Training: Complete staff training before launch.
7. Launch: Grand opening with promotional support.

⚠️ Risks to Consider

• Location risk: Low footfall can hurt sales.
• Operational costs: Rent and staff wages can reduce profit.
• Seasonality: Demand fluctuates in lean seasons.
• Contract terms: Be clear on royalty hikes, renewal fees, and exit clauses.

❓ FAQs (Frequently Asked Questions)

Q1. What is the minimum investment for Chai Break?
Approx. ₹15 lakh to start a small kiosk or café.

Q2. Do I need prior F&B experience?
Not mandatory, but experience helps in smoother operations.

Q3. What licenses are required?
PAN, GST registration, FSSAI food license, and local trade license.

Q4. Can I open multiple outlets?
Yes — many franchisors allow multi-unit ownership with separate agreements.

🏁 Conclusion

A Chai Break franchise offers a structured pathway into India’s chai café market with moderate investment, solid brand support, and the potential for good returns over time. However, success depends heavily on location choice, disciplined operations, and understanding contract terms before signing. If you plan and execute well, this model can become a sustainable business in India’s vibrant chai culture.