Mr Tea Franchise in 2023 {Cost, Requirements & Profit}

The Mr. Tea franchise has the most Indian customers. Whether you’re at a meeting, a college hangout, or a family event, a cup of tea is an essential component of each and every one of them. The profitability of the tea business is improving as a direct result of an unprecedented surge in consumer demand for tea among Indian consumers.

The franchise business model has been adopted by an increasing number of persons and corporations, allowing for their entry into the tea industry. Tea lovers might use this information to build their own businesses in this sector. Mr. Tea Franchise might be one of the greatest low-cost franchise opportunities available to you if you have a passion for tea and want to show customers that you serve it with care as it is known that Mr. Tea franchise cost is very low.

In this post, we will discover about what Mr. Tea Franchise is, how to obtain a Mr. Tea Franchise, how much a Mr. Tea Franchise costs, what the profit margin is, and other information along these lines.

How Does a Mr. Tea Franchise Work?

On January 26, 2021, Kodudula Naveen Reddy established Mr. Tea as a company. This is a tea firm that offers franchises to anyone who are interested in establishing a new franchise in a different city inside India.

What Makes Mr. Tea Franchise Unique?

Mr. Tea is naturally loaded with antioxidants, which will protect you from the damage caused by free radicals. This is just one of the many ways that drinking tea may improve your health. This implies that they are terrific for boosting your immune system, as well as keeping you looking young (due to their anti-aging qualities) and feeling amazing.

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How much does a Mr. Tea franchise cost?

The initial Mr. Tea franchise cost for one location is Rs. 5,00,000 plus any taxes and fees. The following are included in this Mr. Tea franchise cost:

  • Fees for the Franchise and the Marketing;
  • The total price of all of the equipment

This consists of items like a milkshake blender, a soda maker, a hot flask, an oil fryer, a refrigerator that is 190 litres in capacity, a deep freezer, a tea kettle, and steel utensils. 20 Pieces, Induction Cooktop, Display Counter, Three Burner Stove, Outside Board, Inside Menu, Painting, Menu Prints, Lollipop, and 90 Milliliters of Branding

The bifurcation of the Mr. Tea franchise cost is given below-

ParticularsAmount (Premium Model)
Franchise Fee
(Includes Machinery and Setup Cost)
5,00,000 Rupees
18% GST on Franchise Fee90,000 Rupees
Interior, Furniture and Civil Work
(depending upon outlet Size)
2,00,000 Rupees
Advance Raw Material60,000 Rupees
Other Expenditure
(POS, Licenses, Misc)
50,000 Rupees
Total Investment9,00,000 Rupees

Additional Costs Associated with the Mr. Tea Franchise

The cost of interior work and other furnishings are not included in the initial Mr. Tea franchise cost. The franchisee (also known as the investor) is the one who is responsible for the interior work, including the furnishings. The manufacturer is accountable for painting projects of up to 200 square feet. The store’s rental deposit is in addition to the total cost.

Training and Assistance for Mr. Tea Franchises

It is not necessary to provide support employees. On the other hand, the Brand will give training to the chosen members of your workforce. To successfully operate the store, you need a minimum of two to three employees. These personnel do not require any previous expertise in the hospitality industry to be hired. The reason for this is that formulae are used to produce each and every one of Mr. Tea’s beverages. It just takes around three days of instruction to become proficient in Mr. Tea’s preparation procedures.

Also Read: MBA Chai Wala Franchise | Opportunities, Cost & Profit

Profit Margins of Mr. Tea franchise

Profit for the Mr. Tea franchise Sales are inextricably linked to margin profits at all times. The daily sale at Mr. Tea locations can vary anywhere from 8,000 to 35,000 rupees, as stated in the official franchise documentation for Mr. Tea. On the other hand, you can generally anticipate a regular sale of 10,000 or more items.

The location of the store is the most important consideration when determining the daily sales. If your business is located in a high-traffic area, such as a train station, bus station, or near a school or college, then you will see a significant increase in revenue.

Mr. Tea Franchise Area Requirements?

The franchisee (also known as the investor) is the one who is responsible for the interior work, including the furnishings. The manufacturer is accountable for painting projects of up to 200 square feet. The store’s rental deposit is in addition to the total cost.

Please refer to this document for further information.

Is It Possible for the Mr. Tea Franchise to Move the Store?

Yes. The relocation of an Outlet by a franchise is permissible so long as the Brand gives its written clearance. The management needs to provide their stamp of approval to the new location, and it must ensure that the existing outlet is not disrupted in any way. Moving the Outlet to a different location without first obtaining the Brand’s prior written consent is strictly prohibited.

When Serving Tea and Other Goods, is it Ok for the Franchisee to Use Their Own Glasses?

No. It is definitely forbidden since doing so would result in a loss to the Franchise over the long term. Only the Mr. Tea franchise Brand glasses remain unsold after the sale of all of the franchise’s products.

What Happens If Mr. Tea Products Are Used Incorrectly?

The unit franchise will only purchase its raw materials from the Brand / Brand District Representative in order to maintain consistency in quality.

In this scenario, the Unit Franchisee is subject to face legal consequences and to pay a fee to the brand if it is discovered that they are selling Mr.Tea products in a location that is not a Mr.Tea store or in a personal business. In lieu of any other rights, recourses, or remedies that Brand may have under law and/or equity and/or under the terms of the agreement, Brand will collect a sum equal to INR 10,00,000/- in the form of liquidated damages. This amount will not be considered a penalty.

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