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How to Start a Chhaswala Franchise – Cost, Fee, & Profit

Are you Interested and looking for a dairy franchise – Chhaswala Franchise and wanted to know whether this chain will be beneficial or not for you? Have you been reading several articles on Chhaswala, but couldn’t get proper info?

No worries!, we have got you, and you have certainly going to read the best and final article on Chhaswala business. In this guide, we’ll dive deep in to Chhaswala chain with capital requirements, fee, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Chhaswala Franchise opportunities
  • Space required: 250-300 Sq. ft.
  • Franchise Fee: Rs. 2.5 lakh
  • Royalty Fee: 2% (If total sales turnover exceeds Rs. 1Crores)
  • Setup Cost: Rs. 11-13 lakhs
  • Agreement Period: 10 years
  • Total Initial Investment: Rs. 15-16 lakhs

Reason to Invest in Dairy Franchise

There could be several reasons to invest and own a diary franchise. However, the points mentioned below will assist you in comprehending the Dairy Industry growth prospects:

  1. Growth Prospects:
    • India is one of the largest milk producers in the world, contributing around 23% of global milk production.
    • According to Imarc Research, the Indian dairy is expected to reach 30,840 Billion by 2027, exhibiting a CAGR Growth of 14.98% during a forecast period of 2022-2027.
  2. Government Subsidy Scheme:
    • For the growth of the dairy industry, the Indian Government has offered and introduced flagship schemes such as Pradhan Mantri Kisan Sampada Yojana (PMKSY), which assists entrepreneurs in growing their initial seed funds.
  3. Unorganized Sector:
    • The dairy production industry is widely fragmented, primarily dominated by Unorganized player. However, Amul franchise is an exception for it.
Milk Production Trends in India

Chhaswala Snippet

Chhaswala Franchise - Cost

Chhaswala is one of the popular dairy chains, seeded its first crop by Savitaben in 1994 in Ahmedabad, Gujrat. They are known for offering varieties of dairy products such as Milk, Curd, Yummy Matho, Shakes, and the most popular Chhas.

Started in 2015, with a great vision to serve quality dairy products and a healthier alternative to soft drinks to Indians at a relatively affordable price has allowed the franchise to become a known brand among Indians.

Their bold mission to open more than 200 outlets by 2023 would enable interested applicants to join this franchise and the ever-growing dairy Industry.

Please continue reading if you are passionate about dairy franchises & this little snippet about the Chhaswala chain excites you.

We will offer comprehensive and well-researched information regarding the Chhaswala chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.

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Overview of Chhaswala Franchise

Chhaswala Franchise - Cost, Profit

Patel Dairy, later renamed Chhaswala, was established in 1994 by Savitaben as a dairy store in Ahmedabad, Gujarat, India. However, in 2015, Jatin Patel, Savitaben’s son, took over the management of the business with a solo mission to serve authentic and high-quality dairy products and began to expand it through franchising across several locations in India.

It has helped them gain a broader consumer base & allowed them to expand into different cities and ultimately help the chain generate outstanding growth and profit margin.

Below is the range of products that Chhaswala caters,

  • Chhas or Buttermilk
  • Milk
  • Curd
  • Lassi
  • Rabdi
  • Yummy Matho
  • Shakes and their varieties
Chhaswala Franchise Cost

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Benefits of Owning a Chhaswala Franchise

Chhaswala Franchise Profit

Considering the industry growth potential and its prospects, owning a dairy franchise will be quite beneficial. However, We have already mentioned about the dairy industry growth prospects. Do you need more reason to own this franchise? Consider reading further;

  1. Robust Future Growth:
    • The chain’s future growth is driven by strong financial which includes a whopping profit margin at low investment.
    • Chhaswala has robust expansion plan to open over 200 new retail outlets across the country in next five years, that includes states like Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, and other states.
  2. Research & Development:
    • Chhaswala team invests a significant amount in research and development of their menus and product and service offerings, which enable them to boost customer engagement, innovate new products, and enhance their service.
  3. Continuously Upgrading Menus:
    • Chhaswala Chain has dedicated itself to continuously upgrading its menus at regular intervals and has patented three unique recipes, which enable the franchisee owner to attract and retain their consumers.
  4. Quality over quantity:
    • The franchise possesses a history of offering quality health drinks since its inception. Their decision to prioritize quality over quantity has enabled them to expand from their local community to more than 40 shops across India.
  5. End-to-End Support:
    • Chhaswala offers complete support including Site analysis, Business planning, business operations, and business maintenance, which enables the franchisee owner to run this business seamlessly

I hope the above mentioned fact sheet would help you to take an informed decision.

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Now, what are you looking for – Price or Capital requirements? Let’s Jump in;

How Much does a Chhaswala Franchise Price?

One can take up this franchise based on their investment budget. Generally, the Chhaswala offers The Express store formats for FOFO(Franchisee Owned and Franchise Operated) model and FICO(Franchisee Invested and company-operated) model.

FOFO Model

EssentialsCost and other descriptions
Space required250-300 sq. ft.
Franchise FeeRs. 2.5 lakh
Royalty Fee2% (If total sales
exceeds turnover of 1Cr)
Set up CostRs. 11-13 lakhs
Territory Protection1 K.M
Agreement Term10 Years
Total Initial InvestmentRs. 15-16 lakhs

FICO Model

The cost to operate the FICO Franchisee’s business would be between Rs. 70 and 90 lakh, with the company managing all operations.

Hence, Chhaswala Franchise cost will be approx. Rs. 15-16 lakhs for FOFO and 70-90 lakhs for FICO model.

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How much is Chhaswala Franchise Profit Margin?

The cost and profitability is one of the major criteria which plays a significant part in owning or rejection of franchise. To elaborate more on the profit margin, please read further;

EssentialsCost and other descriptions
RentRs. 35000
SalaryRs. 25000
Other ExpensesRs. 20000
Total expensesRs. 80000
Total Estimated RevenueRs. 5 lakh
Wastage2%
Gross Margin27%
Estimated Net Margin11-12%
Payback Period18-24 Months

But in case of FICO Model, The franchise includes a multiple store of 4-5 or above outlets of 250-300 sq. ft.

  • Agreement Term: 4 Years.
  • Revenue Stream:
    • Fixed payback quarterly
    • Share in Revenue

Based on the above analysis, with an estimated revenue of Rs. 5 lakhs, one can anticipate a net profit margin of 11-12%, i.e., Rs. 50000-55000 per month(after all cost cuts)

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Chhaswala Franchise Return on Investment

The franchise offers a great value on its investment to franchisee unit holders. Based on the general analysis, one can expect a payback period of 18-24 months and a net profit margin of 11-12%.

Chhaswala Franchise Requirements

According to the franchise, there aren’t any exact prerequisites per se, but there are some qualifications known as 3’I’needed to get this franchise.

  1. Investment:
    • Interested franchisee prospects must meet the investment requirement suggested by the chains. i.e., Rs. 15-16 lakhs for FOFO and Rs. 70-90 lakhs for FICO model.
  2. Involvement:
    • Uninterested candidates can lead to brand or outlet failure, affecting the brand’s value and presence in the market. Consequently, the franchise would like its franchisee units to dedicate themselves to running and operating the chain regularly with full enthusiasm.
  3. Infrastructure:
    • The franchisee owner should be responsible for infrastructure, including the site location and team building. However, they may seek constant support from the franchise when needed.

Chhaswala Franchise Support

  • Site Selection, criteria and its guidelines
  • Site evaluation and approval
  • Operational, Management, and On-the-Job training
  • Brand promotion and advertising – Including Offline and Online channel
  • Complete operation manual to run the chain efficiently
  • Current IT systems being used (POS / Inventory Management Module, CCTV Monitoring, etc.)
  • End to End Management Support

How to Get Chhaswala Franchise?

Ready to take up this franchise, then follow the below mentioned steps;

Mainly, there are two processes through which one can apply for the franchise.

  1. Visiting their Official website
  2. Or, Directly contacting the franchise manager

Visiting their Official website:

To get a Chhaswala outlet, please visit their official website and fill in the requested details like Name, Mobile Number, Email ID, and Propose location of franchise.

How to Get Chhaswala Franchise

Directly contacting the franchise manager

  • Contact the franchisee manager on 98258 07060 or Email @ info@chhaswala.com.
  • Submit franchise application form for assessment and get approval with in 48-72 hours.
  • Deposit the franchisee fee to reserve the location.
  • Hire the store team, 3 days training on site or at Head office.

Official details of Chhaswala Franchise

  • Chhaswala franchise contact number : 98258 07060 and Email @ info@chhaswala.com
  • Official Address:

PATEL DAIRY PRODUCTS PRIVATE LIMITED
A-1, Swagat Industrial estate-2,
Opp. water tank, Nr. Kuha Bhavda Patiya
Kuha, TA. Daskroi, Ahmedabad-382433 (Gujarat)

Good Luck!! Happy Franchising!!

Conclusion

Started in 1994 by Savitaben and later led by her son: Jatin Patel in 2015, CHHASWALA is one of the popular and rising dairy chains. They are renowned to serve authentic and delicious varieties of dairy products such as Milk, Lassi, Chhas or Buttermilk, Rabdi, Shakes and much more.

Currently, they have more than forty outlets and looking to expand over 200 outlets in next five years, enabling the interested applicants to join this chain and be a part of ever-growing dairy industry.

It also offers a franchise program for interested prospects with an initial investment of -approx. Rs. 15-16 lakhs for the FOFO model and Rs. 70-90 lakhs for the FICO model & in return, provides an impressive net profit margin of 11-12% for the FOFO model and revenue sharing in FICO model.

Given the sector and chain’s projected future growth as well as the franchise profit margin, we would unquestionably advise prospective candidates to start with the FOFO model before moving on to the FICO model as they gain expertise and money.

That’s it from my side. Friends, I sincerely believe that my guide on “Start a CHHASWALA Franchise – Cost, Fee, & Profit” was quite extensive, helpful, and educational, but if you’d need more details, you can check out the franchise’s official website. If you like this piece, kindly let me know by leaving a comment and spreading the word to as many of your friends as you can; Your comments offer us more inspiration to keep producing high-quality material for you. Many thanks.

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FAQ

  1. How much does it cost to Start a Chhaswala franchise?

    Ans: To set up a Chhaswala outlet will cost you approx. Rs. 15-16 lakhs. Below are the details for same;

    Space required: 250-300 Sq. ft.
    Franchise Fee: Rs. 2.5 lakh
    Royalty Fee: 2% (If total sales turnover exceeds Rs. 1Crores)
    Setup Cost: Rs. 11-13 lakhs
    Agreement Period: 10 years
    Total Initial Investment: Rs. 15-16 lakhs

  2. Is CHHASWALA Franchise Profitable?

    Ans: Yes! Definitely at least for FOFO model. Considering the franchise investment, profit margin and ROI, one can certainly take up this franchise and make earn at least Rs. 50000 per month.

    However, we recommend our reader to do their market and growth analysis of concerned franchise, before taking up the same.

  3. How to process Chhaswala franchise?

    Ans: To become an approved Chhaswala outlet owner, one has to follow the below mentioned steps;

    Process: 1
    1> Visit the franchise official website.

    Process: 2
    1> Contact the franchisee manager on 98258 07060 or Email @ info@chhaswala.com.
    2> Submit franchise application form for assessment and get approval with in 48-72 hours.
    3> Deposit the franchisee fee to reserve the location.
    4> Hire the store team, 3 days training on site or at Head office.

  4. How much does a CHHASWALA franchise owner make?

    Ans: The franchise follows a proven business model that offers 100% profitable business, stability, and satisfaction. However, after all cost cut and expenses, the franchisee owner can earn at least Rs. 50000-55000 per month.

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