How Affordable is Opening a Haldiram Franchise in India? in 2024

Are you passionate about food? looking for a premium food brand that attracts more people just through its name. Look no further. Haldiram is offering franchises in three models for aspiring entrepreneurs. How affordable is opening a Haldiram franchise in India? In 2024, we will discuss: what are those three models of the franchise, how much costs for each model, the profit potential, what the requirements like location, space, and documents, how to get a Haldirams franchise, and whether the Haldiram franchise is worth the investment or not.

About Haldiram

Haldiram was established by Ganga Bishan Agarwal in 1937 in Bikaner, Rajasthan. Earlier, it was started as a Haldiram Ji retail sweets and namkeen shop. It is now an Indian multinational company headquartered in Noida. Currently, Haldiram products are available in worldwide 80+ countries. It has manufacturing plants in various locations in Nagpur, New Delhi, Gurgaon, Hooghly, Rudrapur, and Noida, as well as other retail chain stores and restaurants in cities like Pune, Nagpur, Raipur, Kolkata, Noida, and Delhi. Haldiram offers products like traditional namkeens, western snacks, Indian sweets, cookies, sherbet, pickles, and more.

Haldiram has more than 275 outlets in 40 cities worldwide. Halidram has 1000+ distributors, and Its products are available in 7 million+ outlets. Haldiram aimed to open more than 60 to 80 outlets or stores in Bengaluru, Chennai, and other locations in 2024. It is planning to open 150 to 200 outlets in the next two years in central and south India. 

Key Details of Haldiram Franchise

• Brand Name: Haldiram
• Industry: Food and snacks
• Number of Outlets: 275+
• Franchise cost: 30 lakhs to 5 crores
• Profit Margin: 14 to 20%
• Space required: 150 to 5000 sq ft
• Franchise Agreement: 9 years
• Royalty fees: 2.5% annually
• Official Website: https://www.haldirams.com/

How Much Does it Cost to Open a Haldiram Franchise in India?

Franchise Fee: This is an initial fee to acquire the rights to operate a franchise of 3 to 10 lakhs. It gives the franchisee access to Haldiram’s brand name, business model, and support services.

Franchise Agreement Period: The franchise agreement is for 9 years. This outlines the terms and conditions between the franchisee and Haldiram.

Royalty Fee: Haldiram charges a royalty fee of 2.5% of the franchisee’s annual sales. This fee needs to be paid annually to Haldiram for the ongoing support, use of the brand name, marketing efforts, and other services provided by the franchisor.

Investment Required for Three Different Franchise Models of Haldiram.

Kiosk Model: This is a small kiosk or stall, typically located in malls, airports, or busy public areas. This requires a franchise fee of 3 lakhs plus GST and a total investment of 30 to 50 lakhs. This includes franchisee fees, initial inventory, working capital, and others.

Quick Service Restaurant (QSR) Model: This is a larger establishment that offers fast food and quick service. requires a franchise fee of Rs 5 lakh plus GST. The total investment required for this model is 2 to 4 crores, including larger premises, more equipment, and staffing requirements. 

Casual Dining Model: Casual dining franchises offer a more extensive menu and a comfortable dining experience. The investment required for this model ranges from 3 to 5 crores. This higher investment is due to the larger space, extensive menu offerings, and potentially higher operating costs associated with a full-service restaurant setup.

Haldiram franchise cost in India may vary based on outlet size and franchise location. To know the exact investment-based location, contact Haldiram. 

Is a Haldiram Franchise a Profitable Choice?

Total Investment Range: The initial investment to open a franchise of Haldiram starts from 30 lakhs to up to 5 crores based on the franchise model.

Profit Margin: As a franchisee of Haldiram, you can expect a profit margin of 14% to 20% of the total revenue, indicating a healthy return on sales. This profit may increase based on the location you choose for the franchise and the operational efficiency of the outlet.

Return on Investment Period: You can recover the initial cost invested to start a franchise within 2 to 4 years.

Considering the moderate to high-profit margins, a reasonable return on investment period, strong brand recognition, and support provided by Haldiram, investing in a Haldiram is a profitable choice.

Haldiram Franchise: Who is eligible to get a franchise?

Age and Qualification:

• The franchisee must be at least 21 years old.
• A minimum qualification of 12th grade is necessary.

Knowledge and Experience:

• Familiarity with the FMCG (fast-moving consumer goods) distributorship business is beneficial.
• Having experience in the food industry or retail sector can be advantageous.

Financial Resources:

• Ensure you have the financial capability to invest a minimum of Rs. 30 lakh in the franchise and run the business effectively.

Location Approval:

• Secure a prime location for your Haldiram outlet.
• The chosen location should be approved by Haldiram.

Training:

• Franchisee or employees needs to undergoes training provided by Haldiram to understand the operating system, products, and brand standards.

Commitment:

• Be committed to following the franchisor’s guidelines and maintaining quality standards.

Requirements to Open Franchise

• Investment: The investment required to open a Haldiram franchise is between 30 lakhs and 5 crores, depending on the franchise model you choose.
• Business Experience: Prior experience in the food and beverage industry is beneficial but not mandatory. However, franchisees must have an understanding of business operations, and customer service is essential.
• Required Space: The space required to open a Haldiram franchise varies depending on the franchise model you choose. The area ranges from 150 sq ft to 5000 sq ft.
• Location: To open a franchise Haldiram needs to choose high-traffic premium locations such as shopping malls, commercial centers, or busy streets with good visibility and accessibility.
• Required Staff: The number of staff required will depend on the size of the franchise outlet. You may need 3 to 10 employees. 

Required Documents

•  Franchise Application and Agreement Form: Complete and submit the official application form provided by Haldiram. And the franchisee needs to sign the agreement form between the franchisee and the brand. This contains terms and conditions, and it is valid for up to 9 years. 
• Business Plan: It is a detailed business plan outlining your approach or strategy to operating the franchise successfully. Like approach to marketing and sales strategy, financial projections, management team, and more 
• Proof of Identity: Provide valid government-issued documents such as a passport, driver’s license, or Aadhar card.
• Proof of Address: The franchisee should submit address proof documents verifying your residential or business address, such as utility bills or rental agreements.
• Financial Documents: Like bank statements, income tax returns, or other financial documents to demonstrate your financial ability to invest in the franchise,.
• Experience Certificates: If you have prior experience in the food industry or franchising, provide relevant experience certificates or references.
• NOC from the Landlord: Obtain a No Objection Certificate (NOC) from the owner only if you are taking land for lease. 
• Photographs: Recent passport-size photographs of the franchise owner(s) and key personnel involved in the operation.
• GST Registration: A valid GST (Goods and Services Tax) registration number for tax compliance purposes.
• FSSAI License: A Food Safety and Standards Authority of India (FSSAI) license or registration for ensuring compliance with food safety regulations.

Required Location and Area to Start Haldiram Franchise

• Choose location: Location with a minimum population of 100,000 and a high purchasing capacity. And ensure that your chosen location is at least 2.5 km away from existing Haldiram franchise outlets.
• Shopping Malls: Shopping malls offer excellent visibility and access to a wide range of foot traffic and potential customers.
• Commercial Centers: Areas with office buildings, corporate parks, and business districts attract professionals and Employees who may seek quick and convenient dining options.
• Busy Streets: Locations on busy streets traffic can generate a steady flow of customers throughout the day.
• Tourist Destinations: Popular tourist spots, landmarks, and attractions attract both local and international visitors.

What kind of support does Haldiram provide to the franchisee?

Training and guidance:

• Initial Training: As a franchisee of Haldiram, you will receive training on operations, hygiene standards, customer service, and inventory management.
• Ongoing Support: You receive continuous support and guidance from the brand. The brand will help you resolve challenges and keep you updated on industry trends.

Site Selection and Setup:

• Site Selection Assistance: The brand will assist you in selecting a location for the franchise outlet with high footfall and visibility.
• Store Layout and Design: You will receive support in designing the store layout, interior decor, and branding.

Supply Chain and Inventory Management:

• Product Supply: The brand supplies high-quality products and goods to the franchise outlets.
• Inventory Management: Franchisees will receive guidance on managing inventory efficiently.

Marketing and advertising:

• Brand Promotion: Haldiram will help you promote the franchise outlet through regional marketing and campaigns. 
• Local Marketing: Franchisees receive support for local advertising and promotional activities from the brand.

How to get a Haldiram Franchise?

• Visit the official website of Haldiram.
• Look for the Apply Now section available on the menu bar of the website.
• Click on the “apply now” button/link to access the franchise application form.
• Fill out the franchise application form with accurate information.
• Ensure all required fields are completed accurately.
• Submit the completed form through the website’s submission process.
• After submission, await a response from the Haldiram franchise team.
• Be patient during the review process as the franchise team evaluates your application.
• Once your application is reviewed, you will receive a response regarding the status of your franchise request.

Is Haldiram’s Franchise Worth the Investment in India?

Pros:

• Brand Reputation: Haldiram is a well-known brand with a rich legacy, trusted by millions of consumers. The brand’s reputation can attract loyal customers and drive footfall to the outlet.
• Proven Profitability: As a franchisee of the Haldiram brand, you can expect a profit of 15 to 20%. You will benefit from an established customer base.
• Diverse Product Range: Haldiram offers a wide variety of products, including snacks, sweets, and ready-to-eat meals. This diversity attracts all consumers who prefer different tastes in foods. It ensures steady sales at the outlet.
• Strong Supply Chain: Haldiram maintains continuity in the supply chain and ensures timely product supply to the outlet. So franchisees can only focus on operations without worrying about shortages of supply.
• Marketing Support: National and regional marketing campaigns promote the brand. This directly increases your sales.
• Return on investment: Within 2 to 4 years, you can recover the initial investment you spent on an open franchise outlet.
• Franchise models: Haldiram is providing franchises in 3 models; you are free to choose a suitable model.
• Ongoing Support: Franchisees will receive ongoing support and training from the brand.

Cons:

• High Initial Investment: To open a franchise in Haldiram, you need to have a minimum investment of Rs 30 lakh. 
• Competition: The food industry is highly competitive, with several players running their businesses. Franchisees must differentiate themselves to succeed.

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Conclusion

In conclusion, how affordable is opening a Haldiram franchise in India? in 2024. Haldiram is providing an affordable franchise opportunity for all who have the desire to kick-start their business by providing franchises in 3 models: the kiosk model, the quick service restaurant (QSR) model, and the casual dining model. Based on your investment and the area you have, you can choose a suitable franchise model. As a franchisee, you can expect a 15–20% profit margin, and within 2–3 years, you can recover your initial investment.

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