How Much Does It Cost to Open a Tea Franchise?

Opening a tea franchise in India can be a promising investment, but it comes with substantial financial requirements. The cost of starting a tea franchise in India typically ranges from ₹15 lakh to ₹50 lakh, depending on various factors such as the brand, location, and size of the outlet. The franchise fee itself is usually between ₹5 lakh to ₹15 lakh, which gives the franchisee the rights to operate under the brand’s name and utilize its established systems. Beyond the franchise fee, there are additional costs to consider. One of the significant expenses is setting up the store, including interior design, furniture, and fixtures, which could cost anywhere between ₹5 lakh to ₹25 lakh, depending on the location. Equipment such as tea brewing machines, refrigerators, and point-of-sale systems will also require a considerable investment, typically ranging from ₹2 lakh to ₹10 lakh. Additionally, you’ll need to account for inventory, which includes tea leaves, cups, and other supplies, typically costing around ₹1 lakh to ₹3 lakh. Ongoing expenses include royalty fees, which generally range from 5-7% of monthly sales, and marketing contributions to the franchise, usually around 2-4%. Rent for the premises will vary based on location, with higher rent costs in high-traffic areas such as malls or prime city locations. While the cost of opening a tea franchise in India can be high, the growing demand for tea-based beverages and the relatively low operational complexity can make it a profitable business in the long run.