Chhaswala Franchise: Is it Worth the Investment? & Cost in 2024

Are you looking for a profitable business in the dairy industry? Look no further. Chhaswala provides franchise opportunities for desired entrepreneurs with a reasonable investment. Chhaswala Franchise: Is it Worth the Investment? & Cost in 2024 In this, we will discuss requirements, what are the franchise fees, how much investment is required to start the Chhaswala franchise, what is the profit margin, and step-by-step guidelines to secure the franchise. 

About Chhaswala

Chhaswala was established as Patel Dairy by Savitaben Patel in 1994. Its mission was to provide her family and community with pure, wholesome dairy products. In 2001, Patel Dairy was renamed Chhaswala. The journey began from a humble dairy shop to a well-known dairy brand in India. Currently, there are 99 products in different variety categories, such as

• Buttermilk (Chaas): A probiotic-rich, refreshing drink available in various flavors.
• Curd (Dahi): creamy and nutrient-packed, essential for Indian meals.
• Lassi: A thick, indulgent beverage with flavors like mango and rose.
• Rabdi: a decadent dessert made from simmered milk, garnished with nuts.
• Ice Creams and Candies: Pure bliss in frozen form.
• Srikhand: A silky yogurt dessert flavored with cardamom and saffron.

Currently, Chhaswala has more than 175 outlets across three states in India. Now their mission is to have a Chhaswala outlet at every nook and corner of the country and always putting effort towards opening more outlets in India. and also towards occupying space in hearts with Rabdi, Lassi, Curd, and other flavourful products. 

Key Details of Chhaswala Franchise

• Brand Name: Chhaswala
• Industry: Dairy Industry
• Number of Outlets: 175 in 3 States
• Franchise Fees: 2.5 lakhs
• Franchise cost: 15 to 16 lakhs
• Gross profit Margin: 27%
• Space required: 250 to 300 sq ft
• Royalty Fees: 2% on 1 crore
• Franchise Agreement: 10 years
• Official Website: https://www.chhaswala.co/

Is a Chhaswala Franchise Affordable? Let’s Break It Down!

Chhaswala offers franchise opportunities in two distinct models: FOFO (Franchise Owned, Franchise Operated) and FICO (Franchise Invested, Company Operated). 

Chhaswala franchise investment for FOFO Model.

• Franchise Fee: The franchise fee of 2.5 lakhs is a one-time payment to the Chhaswala for the right to operate a franchise under their brand and open an outlet using the brand name.
• Estimated Setup Cost: The investment required to set up a Chhaswala franchise outlet is 11 to 13 Lakh including lease, equipment, furniture installation, and other expenses.
• Initial Inventory: Franchisees need to invest 3 to 5 lakh as initial inventory to stock up on ingredients, supplies, and packaging materials required for day-to-day operations. The franchisee needs to purchase 2 to 3 months of stock as initial inventory.
• Royalty Fee: The Franchisee needs to pay 2% of the total revenue when franchise store sales exceed 1 crore
• Working Capital: Working capital of 3 to 5 lakh is essential for covering day-to-day operational expenses such as employee salaries, utility bills, marketing initiatives, and unforeseen costs. Until your franchise outlet starts to make a profit.
• Franchise Agreement: The franchise agreement between the franchisee and Chhaswala is for 10 years. This contains terms and conditions, revenue share to the franchisee, and others.
• Total Investment: The Chhaswala franchise of the FOFO model is an affordable investment of 15 to 16 lakh including franchise fee, setup cost, initial inventory, working capital, and others.

Chhaswala franchise investment for FICO Model.

• Franchise Agreement: The franchise agreement typically spans 4 years, during which the franchisee is granted the rights and responsibilities outlined in the agreement.
• Total Investment: The total investment required for setting up a Chhaswala franchise in the FOFO model ranges from 70 to 90 lakhs. 

The cost of a franchise may vary based on the location and size of the outlet. To get exact and up-to-date cost information, directly contact Chhaswala.

Is a Chhaswala Franchise a Profitable Investment?

• Total Investment: The initial investment required to open a Chhaswala franchise is 15 to 16 lakhs, covering expenses like franchise fees, equipment, inventory, and initial operational costs.
• Revenue Share to Franchisee: Chhaswala has an attractive revenue share model with the franchise owners; Chhaswala shares 90% of the revenue from sales with the franchisee. This means the maximum portion of the revenue is directly converted to the Chasswala franchisee’s profit.
• Gross Profit Margin: As a franchisee of Chhaswala, you can expect a gross profit margin of 27% of the total sales of the franchise outlet.
• Return on Investment: Franchisees can recover their initial investment of 15 to 16 lakhs within 1.5 to 2 years through the profits generated by the business.

Considering a high revenue of 90%, a gross profit margin of 27%, and the fact that within 1.5 to 2 years, franchisees can recoup their initial investment, The franchise of Chhaswala is a profitable investment.

Qualifications to Become a Chhaswala Franchisee.

• To qualify as a franchisee, you must at least be at least 21 years old and have completed your 10th-grade education.
• To be a Franchisee of Chhaswala you need to have an entrepreneurial spirit and passion for the food industry.
• Need to be Financially stable to meet initial investment requirements.
• Willingness to undergo training and follow franchise guidelines.
• Your commitment to customer satisfaction and quality service is important.
• Franchisees should be Capable to manage staff and daily operations effectively.
• You should have Strong communication and interpersonal skills.
• Understanding of local market dynamics and customer preferences.
• Dedication to brand building and business growth.

Requirements to Open Franchise

• Investment: Ready to invest 15 to 16 lakhs in an in an initial investment?
• Business Experience: Prior experience in the food industry or business management is beneficial but not mandatory.Should have an understanding of customer service and operational management.
• Required Space: The ideal space required to set up a Chhaswala franchise ranges from 250 to 500 square feet.
• Location: You need to choose high-traffic areas such as shopping malls, commercial districts, or office complexes. The chosen location should be easily accessible and visible to the people.
• Required Staff: To operate a franchise outlet, you need to have one or two trained staff.

Required Documents

To get the franchise of Chasswala, you need to have the below documents.

• Franchise Application Form: You need to fill out the franchise application form with your personal and business details.
• Identification proofs: You need to submit valid government-issued identification documents like a passport, driver’s license, or Aadhar card to verify the franchise owner’s identity.
• Address proofs: need to provide documents like utility bills, rental agreements, or property ownership papers to ensure the residential or business address.
• Financial Documents: You have to provide documents like bank statements or tax returns to verify the financial stability and ability of the franchise applicant.
• Business Plan: As a franchisee, you need to prepare a rough business plan that should contain your strategy, market analysis, and financial projections for operating the franchise of Chhaswala.
• Legal Documents: Submit the business registration documents like GST registration, trade license, or incorporation certificate to start setting up the franchise outlet.
• Franchise Agreement: You need to review and sign the franchise agreement provided by Chhaswala, which outlines the terms and conditions between you and Chhaswala.
• GST Registration: You should register mandatory documents for doing business in India under the Goods and Services Tax.
• Food Safety and Standards Authority of India (FSSAI) License: Franchisees should have the FSSAI license, which is necessary to operate food businesses.

Required Location and Area

Location Suitability:

• Choose high-traffic areas like shopping malls, commercial complexes, or office hubs.
• Locations with good visibility and accessibility are good for attracting more customers to franchise outlets.
• Ensure the franchise location is easily identifiable and reachable to potential customers.
• Choose locations with a diverse customer base and a high demand for affordable and delicious food options.

Area Requirements:

• The ideal space for opening a Chhaswala franchise outlet requires between 200 and 500 square feet.
• Ensure the layout allows for efficient workflow and a comfortable dining experience (if offering dine-in services).

What kind of support does Chhaswala offer the franchisee?

Sales Strategy and Marketing Support:

Chaswala provides timely support to the franchisee in online promotions, radio campaigns, newspaper advertisements, and other marketing activities.

Business Operations and Maintenance:

Chhaswala assists the franchisees in choosing the site, site evaluation, and approval. Also, offer 10 days of operational training to ensure smooth day-to-day business management.

Quality assurance and transparency:

Chhaswala maintains unmatched quality and taste in all Chhaswala outlets, which ensures customer loyalty. Franchisees will benefit from a transparent business model. 

Latest ERP System:

Chhaswala enables franchisees to control and analyze their business efficiently through an advanced ERP system.

High Returns and Customer Footfall:

Existing franchisees share positive experiences, emphasizing that Chhaswala’s brand reputation attracts customers.
Sales conversion is high due to the addictive taste and quality of Chhaswala products.

How to get the Chhaswala Franchise?

To get the Chhaswala franchise, follow these steps:

• Visit the Official Website: Visit the official Chhaswala website using your web browser.
• Navigate to “Franchising”: Look for the “Franchising” section on the website’s menu or homepage of Chhaswala.
• Fill in the details: Then you will get a contact form. Fill out the contact form with your personal details. 
• Submit the Form: Ensure the filled-in information is accurate before submitting the form. 
• Wait for a Response: After submitting the form, wait for a response from Chhaswala’s franchise team. The team may take a few days to review your application form. If you are eligible, the team will contact you further.

Chhaswala Franchise: Is it Worth the Investment?

Pro’s

Established Brand and Market Presence: Chhaswala is a well-known brand in the dairy industry. Currently, the brand operates 175 outlets successfully. As a franchisee, you will benefit from its existing reputation and customer base.

Wide Range of Flavors: Chhaswala offers a wide variety of Chhas flavors and categories like buttermilk, curd, lassi, rabdi, ice creams, candies, Srikhand, and others.

Training and Ongoing Support: Franchisees of Chhaswala receive complete training for up to 10 days. This training covers product preparation, customer service, inventory management, and marketing strategies. Also, the brand provides ongoing support to the franchise outlet.

Potential Returns: As a franchisee, you can expect a gross profit margin of 27% of total revenue. 

Quick ROI: Within 18 to 24 months, the franchisee can recover the initial investment.

Cons

Local Competition: Depending on your location, you may face competition from local beverage vendors. Analyze the market and strategize accordingly. 

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Conclusion

In conclusion, Chhaswala Franchise: Is it Worth the Investment? & Cost in 2024 if you’re passionate about dairy franchises and seek a well-reputed brand within a reasonable budget of 15 to 16 lakhs, with a gross profit margin of 27%. Franchisees can recover the initial investment within 18 to 24 months, and you have to pay a 2% royalty fee only if your franchise outlet crosses the sales threshold of Rs 1 crore. Chhaswala could be a rewarding investment. Remember to weigh the costs, benefits, and your own entrepreneurial vision before making a decision. 

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