Kulhad Chai Franchise Cost, Profit & How to Start in 2025?

Kulhad Chai is India’s leading chai franchise that stands out due to its distinctive method of preparing tea. Initiated in Uttar Pradesh, specifically in Lucknow, Kulhad Chai is the dream of two couples namely, Mrs. Shikha Mishra and Mr. Shukla. The company has expanded into one of the fastest-growing chai franchise businesses in India and provides a unique tea in Kulhads – clay cups, which give a different taste and smell to tea. Thus, the mission of Kulhad Chai is to bring the Indian favorite –” Desi Chai” to every corner of the world.

About Kulhad Chai

Kulhad Chai is unique with its addition of kulhads which not only improves the taste of tea but is also sustainable. The franchise has become popular because of the quality service delivery and the culture of taking teas. The business model focuses on the combination of traditional activities and innovative entrepreneurship; therefore, it may be considered a favorable opportunity for potential franchisees.

Key Details of the Kulhad Chai Franchise

Brand Name: Kulhad Chai
Industry: Food & Beverage
Franchise Model: FOFO
Franchise Fee: 1.5 lakhs
Franchise Cost: 3.5 lakhs to 5 lakhs
Royalty Fee: Rs 50 per day
Profit Margin: 20% to 30%
Space Required: 250 to 550 sq. ft
Franchise Agreement Term: 5 to 10 years
Franchise Application: Apply Here

How Much Does the Kulhad Chai Franchise Cost?

 Starting a Kulhad Chai franchise requires investment between 3.5 lakhs to 5 lakhs + GST including franchise fees, starter kit, rent & Deposit, Initial Inventory, Working Capital, and others. This investment may vary based on the franchise outlet size and location. Here is the detailed cost breakdown of the Kulhad Chai Franchise:

Franchise Fee1.5 lakhs + GST
Business Starter Kit with Equipment2 lakhs
Rent/Deposit1 lakh
Initial Inventory50,000 to 1 lakh
Working Capital50,000
Royalty FeeRs. 50 per day
Franchise Agreement Term5 years, No renewable Charges
Total Investment3.5 lakhs to 5 lakhs plus GST

Franchise Fee/ Brand Fee: Kulhad Chai Charges a franchise fee of 1.5 lakhs + GST for usage of the brand, training personnel, and early assistance.

Business Starter Kit with Equipment: Kulhad Chai offers a starter kit for franchisees that includes required machinery equipment and others. For this brand, it charges 2 lakhs.

Rent/ Deposit: To cover the initial deposit and monthly investment is more than 1 lakh.

Initial Inventory: To purchase the initial stock as initial inventory requires an investment of 50,000 to 1 lakh.

Working Capital: To cover the day to day expenses of the franchise outlet requires working capital of 50,000.

Royalty Fee: Kulhad Chai Charges a royalty fee of rs 50 per day to provide marketing, advertising, and ongoing support.

Franchise Agreement Term: Kulhad Chai franchise agreement term is 5 years and Brand not charging any renewable fees for franchisees.

Kulhad Chai Franchise Models

Kullad Chai has provided various franchise options for potential investors to cater to the different investment capabilities and business requirements. These franchise models are set up to be as versatile and inclusive as possible for the various types of individuals interested in the chai café business.

Urban Tea & Food Lovers Kullad Outlet

Urban Tea Kulhad Chai Franchise Cost3.5 lakhs to 5 lakhs
Franchise Fees1.5 lakhs + GST
Business ROIBetween 12 to 15 months
Profit Marginfrom 40% to 50%
Required Area100 – 300 sq. Ft

This model offers equipment for the kitchen, equipment layout, and branding and marketing assistance. As for the advantages that the franchisees get, it can be noted that they have a high return and a good reputation.

 Desi Kullad Kiosk / Shop-In-Shop Model

Kiosk Model Kulhad Chai Franchise Cost3.5 lakhs + GST
Franchise fees1.5 lakhs + GST
Profit Margin40 to 50 percent
Required Area50 sq. Ft
Business ROI10 to 12 months

This model aims to be economical but still effective and offer the best Chai experience to consumers. This makes it a better option for entrepreneurs who are looking to penetrate the chai café business with relatively low capital investment.

Kullad Desi Franchise Model

Kullad Desi Model Kulhad Chai Franchise Cost3.5 lakhs to 5 lakhs
Franchise fees1.5 lakhs + GST
Profit Margin40 to 50 percent
Required Area250 – 550 sq. Ft
Business ROI12 to 15 months

This model incorporates the desi look with an extensive range of food items that will help capture any market and create a high tea-drinking paradigm.

Profitability of the Kulhad Chai Franchise

A Kulhad Chai franchise can generate a Daily income of 10,000 to 20,000, depending on location and customer traffic. The gross profit margin is approximately 60%, with a net profit margin of 20% – 30%. This results in a monthly profit of ₹1.6 lakhs to ₹3.6 lakhs. The franchise typically offers a return on investment (ROI) within 18 to 24 months.

Revenue and Profit

Revenue Per Day10,000 to 20,000
Gross Profit Margin60%
Net Profit Margin20% – 30%
Profit per Month1.6 lakhs to 3.6 lakhs
Return on Investment Period18 to 24 months

Why Should You Choose Kulhad Chai Franchise?

Unique Offerings: Kulhad Chai is a tea house that serves its tea products in traditional kulhad along with some snacks and baked products. Besides improving the taste of the tea, the use of the kulhad method is also environmentally friendly.

Supply Chain: It also guarantees a constant source of quality tea leaves and other inputs in the production line in different outlets. The incorporation of superior quality raw materials ensures superior quality tea is produced.

Employee Training: All franchisees and their personnel are oriented and trained on ways of preparing tea, handling clients, and running the business. This includes food quality, cleanliness standards, and business organization in order to provide quality services.

Low-Cost Operations: The franchise model is characterized by high efficiency and effectiveness of cost with nearly negligible operational cost and good cost control. This approach is also useful in achieving maximum profits for the franchisees.

Low Royalty Fees: Kulhad Chai has low royalty fees; which means more revenues for franchisees, which makes good business sense for investors.

How to Apply for the Kulhad Chai Franchise?

 1. Initial Inquiry: Contact the Kulhad Chai team through the phone or go to the official webpage at www. kulhadchaiindia. com and download the franchise application form.

 2. Location Selection: Identify and select a suitable and strategic place for the shop.

 4. Document Submission: For agreement preparation, fill in the missing information: firm’s details, Aadhaar Card, PAN Card, shop address, and email ID.

 5. Agreement Formalities: Pay the franchise fee and sign the franchise agreement.

 6. Outlet Setup: The outlet inauguration and design will take 25 to 30 days for the company.

 7. Marketing Activities: Kulhad Chai will start advertising through social media platforms to ensure that consumers are aware of the product.

Official WebsiteKulhad Chai
Franchise ApplicationApply Here
Contact Number91-8800879693
Email Idkulhadchaiindia@gmail.com

Pros and Cons of a Kulhad Chai Franchise

ProsCons
Established Brand: Kulhad Chai is one of the well-known brands in the chain of chai.High Initial Investment: Is capital intensive, meaning that it would need a large cash outlay at the start.
Unique Product Offering: That special taste that you get when you drink kulhad chai that is prepared in the traditional way.Competitive Market: The café market can be described as very saturated.
High-Profit Margins: Reasonable profit margins with low royalty expenses.Location Sensitivity: Location plays a very central role in the achievement of success.
Support System: Training, logistical support, and marketing guidance.

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Conclusion

In Conclusion, Kulhad Chai Franchise Cost, Profit & How to Get Started? Kulhad Chai is one of the best franchise business options for everyone who has plans to invest in the tea business. This is encouraging as it shows that the focus areas for this business product have originality, good brand backing, and profitability on top of the high initial investment.

FAQ

What amount of capital is needed to open a Kulhad Chai franchise?

To Start the Kulhad Chai franchise Costs between 3.5 lakhs to 5 lakhs based Franchise model you choose including franchise fee, setup costs, working capital, and others.

 Is the Kulhad Chai franchise making money?

Yes, yes it’s a profitable business having monthly sales of around 800000 rupees to 1200000 rupees, and having net profit margin of 20% to 30%, and having ROI of 18-24 months.

Why should someone go for a Kulhad Chai franchise?

Kulhad Chai could be an interesting approach for me as they offer specific kulhad tea, focus on sustainability, and the possibility to get huge revenues in the expanding industry.

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