Can You Afford an Ibaco Franchise Cost? Profit, and How to Apply? in 2024

The name Ibaco has been established as one of the key players in the ice cream market in India. Due to its different tastes and good-quality products, it has expanded hugely, and it is one of the best franchises to invest in. This article will share more information about how costly it is to purchase an Ibaco franchise business, its profitability, and other details about it in the year 2024.

About Ibaco

Ibaco was launched by Arun Icecreams, which is a part of Hatsun Agro Product Ltd. The brand was launched in 2012 and has been offering a wide range of ice creams and ice cream cakes to clients and customers so that they can have an out-of-the-ordinary experience. The store brand has quickly grown across the country and is famous for its quality and new offerings.

Key Details of Ibaco Franchise

• Brand Name: Ibaco
• Industry: Food and Beverages Ice Cream
• Number of Outlets: Over 150
• Franchise cost: 20 to 30 lakhs
• Profit Margin: 30%
• Space required: 300 to 500 sq ft
• Franchise Agreement: 5 years
• Official Website: https://www.ibaco.in/

Ibaco Franchise: Facts About Franchise

Unique Ice Cream Varieties: Some of the ice cream varieties available from Ibaco include regular, seasonal, and novelty ice cream flavors. They also serve ice cream cakes and desserts that target various clients in the market.

Raw Material Supply: Raw Material Supply Ibaco guarantees the supply of quality raw materials required for maintaining the taste and quality of the products across the outlets. This kind of centralized supply chain is useful in ensuring that they sustain the quality of the brand they offer.

Employee Training: Ibaco offers franchise training and product training to its franchisees and their employees, respectively. This ranges from the preparation of ice cream to front-end services and outlet operations to guarantee effective and efficient outlets.

Cost-Effective Model: The efficient Ibaco franchise operation is promoted because there are few complex procedures and no requirements for chefs. This goes a long way toward cutting down on the cost of operation.

No royalty fees: No regular franchisee fee deductions. Royalty fees are not required by Ibaco, and franchisees receive full control over their profits without deductions.

Can you afford an Ibaco franchise?

The initial cost of starting an Ibaco franchise can be summarized in various ways. Here’s a detailed breakdown:

Franchise Fee: The franchise fee is ₹5 lakhs, along with GST charges. This involves the name of the brand, recipes, and training services for its customers.

Fixed Cost: It may cost anywhere from ₹ 10 lakhs to ₹ 15 lakhs as furniture costs and interior and exterior design costs.

Initial Stock: The first expenses that include the initial purchase of ice cream and other items are likely to cost between ₹3 and ₹5 lakhs.

Shop Deposit: Security Deposit A security deposit of ₹ 2 lakhs to ₹ 3 lakhs is needed based on the shop location and its size.

Marketing Fee: The marketing fee is set at ₹1 lakh, which will be dedicated to advertising and any other extra expenses needed to lure customers.

Working Capital: Starting capital is required of ₹ 2 to ₹ 3 lakhs for working capital to manage day-to-day expenses and employees’ wages.

Total Investment: The total Ibaco Franchise Cost is ₹20 to ₹30 lakhs including franchise fee, Initial stock, setup cost, shop deposit, marketing fee, working capital, and others.

How profitable is the Ibaco franchise?

Monthly Revenue: An Ibaco franchise can make anything from ₹8 to ₹12 lakhs each month, depending on the outlet’s location and traffic.

Gross Profit Margin: The gross profit margin is about 40% for ice cream and also for other gross sales.

Net Profit Margin: After operating costs such as wages, rent, and utilities, the business has a net profit margin of 25% to 30%.

Monthly Earnings: With a net profit margin of 25% to 30%, the Ibaco franchise’s net earnings would be ₹2 to ₹3. 6 lakhs per month.

Return on Investment: The return on investment period is expected to be between 12 and 18 months, which is a good investment. Summary of Revenue and Profit

Requirements to Open an Ibaco Franchise

Age and education

• Age: The applicant age must be at least 21 years old.
• They should have passed basic educational qualifications.

Financial Stability

• The capability to bring ₹20 to ₹30 lakhs to finance initial and ongoing business expenses.

Business Experience

• No prior business experience is required since Ibaco offers extensive employee training.

Required Space

• about 300–500 sq ft for the outlet, with the front area, kitchen, and billing counter.

Location

• markets, commercial areas, colleges, main roads, bus stands, and near railway stations.

Required Staff

• 3 to 4 employees, trained in efficient operation by its employer through Ibaco.

Required Documents

To apply for an Ibaco franchise, you need to submit the following documents:

• Franchise Application Form
• Business Plan
• Identification Proof
• Address Proof
• Legal Documentation
• Franchise Agreement
• GST Registration
• Shop Act and Trade License
• FSSAI License
• Trade License

How Do I Get an Ibaco Franchise?

Steps to Apply

1. Visit the official website: ibaco.in
2. Download the Franchise Application Form and provide your information.
3. Submit the required documents.
4. For any query, contact the franchise team at +91 9090 800 800.

After they have gone through your application, the franchise team will contact you within a few days.

Ibaco Franchise: Pros and Cons

Pros

• Established Brand: This store is famous for its ice cream, and it offers its consumers only high-quality products.
• Variety: There are many variants and selections of food offerings.
• Consistency: They had set appropriate quality and taste-related standards.
• No royalty fees: All of the profit goes to the franchisees.
• Training and Support: Professional education and consultation services.

Cons

• Competition: The ice cream market is thus very competitive.
• Initial Investment: This can demand the accumulation of a large amount of capital for investment in the beginning.
• Location Dependent: Success is very location-dependent.

Best Ice Cream Franchises

How Much Does Meridian Ice Cream Franchise Cost? & Profit in 2024
Chhaswala Franchise: Is it Worth the Investment? & Cost in 2024
Is a Polar Bear Franchise Worth the Investment? & Profit in 2024
Turkish Ice Cream Franchise: Cost, Profit & How to apply in 2024

Conclusion

In Conclusion, Can You Afford an Ibaco Franchise Cost? Profit, and How to Apply? in 2024 Purchasing an Ibaco franchise is an excellent chance for businessmen who are willing to start their own business and launch an ice cream company. Thanks to the developed brand, a range of non-standard products, and an extensive system of support for clients and partners, Ibaco has a high potential for development. The cost might seem very expensive at the start, but all in all, it pays off in the short term due to the high level of profitability that is achieved. Operating franchises have no royalty fees, customer loyalty, and comprehensive training and assistance. However, considering factors such as competition and geographical dependency, the above benefits ensure that owning an Ibaco franchise is not only viable but also very profitable.

FAQ