Tea Time Franchise Cost

Now, while we turn our attention to the details of the current and potential franchises that Tea Time offers, we would love to share with you the success story behind the marvelous brand. Founded in 2016 by visionary entrepreneur Uday Srinivas Tangella, Tea Time began with a simple yet powerful mission: to make premium high-quality tea available at a reasonable price to as many people as possible.

The company was just a single store in Rajamundry which has now become India’s biggest tea chain serving millions of tea drinkers across the country. The company has also seen a remarkable outlet expansion to approximately 3800 tea-selling outlets in 19 states in India and Nepal alone in just seven years of operation.

So to make sure Tea Time Franchise Cost is successful, it needs Authenticity and quality as a commitment. They offer various types of teas; black, green, oolong, and white tea, milk shakes, flavored milk, and coolers. What makes them stand out is the commitment to employing zero artificial flavors, while every cup represents real desi tea which Indians are familiar with.

Low Investment, High Potential: Starting a Tea Time franchise requires an investment between ₹5 to ₹10 lakhs, making it accessible for newcomers.
Proven Business Model: With over 4,000 outlets, Tea Time offers a tried-and-tested framework for success.

1. Understanding the Total Investment

If you’re thinking about starting a Tea Time franchise, it’s important to know what your initial investment will look like. While it’s not a small amount, the good news is that the costs are manageable and offer great value for the potential return. Let’s break it down so it’s easy to understand.

Franchise Fee

The biggest chunk of your investment will go to the franchise fee, which is usually around ₹4.5 to ₹5 lakhs. This fee gives you the right to use the Tea Time brand, its business model, and its ongoing support. Think of it as a one-time cost to get access to a successful business system that’s already been tested and proven.

Setup Costs

Next up, you'll need to spend on setting up your outlet. This includes:

Interior design and furniture to make your shop welcoming
Signage to grab attention and make your place stand out
Equipment like tea dispensers, refrigerators, and point-of-sale systems

These setup costs usually range from ₹2 to ₹5 lakhs, depending on your location and how much you need to customize your shop.

Inventory Costs

To start serving customers, you’ll need initial stock—that’s the tea, snacks, and other beverages. This usually costs around ₹50,000 to ₹1 lakh, and it’ll cover everything you need to get your business running smoothly from day one.

Other Expenses

There are also other small but important costs:

Licenses and permits to run your business legally
Utility setups like water, electricity, and internet These might add up to ₹1 to ₹2 lakhs.

Working Capital

Finally, you’ll need some working capital to cover your day-to-day operating expenses (staff wages, restocking, etc.). This is typically around ₹2 to ₹3 lakhs.

Total Investment Overview

So, when you add everything up—the franchise fee, setup costs, inventory, and working capital—you’re looking at an investment of ₹5 to ₹10 lakhs. While it may sound like a lot, the potential returns from this business model, especially in busy locations, can make it a great deal.

2. Ongoing Costs: Royalty and Fees

Once you’ve got your Tea Time franchise up and running, there are some regular costs you’ll need to account for to keep everything in good shape. These ongoing costs are part of being a franchisee, but the good news is that they are fairly manageable and come with plenty of support to help you succeed.
Royalty Fee
One of the main ongoing costs is the royalty fee, which is a percentage of your monthly sales. For Tea Time, this is 3% of your monthly sales, but there’s a cap of ₹9,000 per month. This means that no matter how much you make, you won’t pay more than ₹9,000 in royalty fees.
Think of the royalty fee as your contribution toward the ongoing support, marketing, and brand development that Tea Time offers. It’s a small cost for the big benefits of being part of a recognized and successful brand.
Marketing Fee
In addition to the royalty fee, there may also be a marketing contribution. Some Tea Time franchisees contribute around 2-3% of their monthly sales to a central marketing fund. This helps cover national and regional advertising campaigns, making sure the Tea Time brand stays visible and continues to attract customers. While the exact percentage can vary, it’s a small fee for the power of collective marketing.
Other Operational Costs
On top of these fees, you’ll also have the usual operational costs like:
- Staff wages
- Inventory replenishment
- Utilities (electricity, water, internet)
- Maintenance of equipment
While these aren’t fees that go directly to Tea Time, they’re part of the regular day-to-day running of your business. However, Tea Time provides great support in helping you manage your inventory and operations efficiently, so these costs are easier to control.
What’s Included in the Fees?
Even though you’re paying royalty and marketing fees, you get a lot in return:
- Ongoing business support
- Training for you and your staff
- Access to marketing campaigns and promotions
- Regular supply of ingredients and products
These fees help ensure that you’re part of a system that’s designed to keep you successful long-term.

3. Profit Potential and Return on Investment (ROI)

When you're considering investing in a Tea Time franchise, the big question is: How much can I earn, and how long will it take to see a return on my investment? Let’s break it down in simple terms, so you get a clear picture of what’s possible.
Profit Margins
Tea Time is known for offering high-profit margins due to its simple and efficient business model. On average, profit margins can range from 40% to 80% depending on factors like location, sales volume, and how well the shop is managed.
This means that for every ₹100 in sales, you could be earning anywhere from ₹40 to ₹80 as profit. Of course, the better you manage your costs and increase sales, the more profit you’ll make.
Monthly Earnings
Once your franchise is up and running, you can expect monthly earnings to vary, but they typically fall between ₹80,000 to ₹2 lakhs. The earnings depend on factors like foot traffic, location, and how well you market your shop. In high-footfall areas like near colleges or busy markets, you might earn on the higher end of this range.
How Quickly Can You Recover Your Investment?
One of the biggest advantages of a Tea Time franchise is the relatively fast return on investment (ROI). Most franchisees can recover their initial investment within 6 to 12 months, depending on their location and sales performance.
If you’re in a busy area with good customer flow, you could start seeing profits much sooner. But even in more moderate locations, the business is designed to be low-risk, with quick profitability once the initial setup is complete.
Scalability – Room to Grow
Another exciting aspect of Tea Time franchises is the scalability. If your first outlet is successful, you have the opportunity to open more outlets. Many franchisees expand to multiple locations, which helps grow their profits even further. This is where you start to see the real potential for high returns over time.
Factors That Influence Profit
Your profits will also depend on how well you manage:
- Inventory control: Keeping costs down by managing stock efficiently.
- Staffing: Having the right team to deliver great customer service.
- Marketing: Leveraging local marketing to attract more customers.
While these factors require some effort and attention, they all play a huge role in boosting your profit potential.

4. Space and Location Requirements

When it comes to opening your Tea Time franchise, location is key. The right space can make a big difference in how many customers walk through your door, so let's go over what you need to know about the ideal space and location.

Space Requirements – How Much Room Do You Need?

Tea Time outlets are designed to be compact yet efficient, so the space requirements aren’t huge. You’ll need around 100 to 200 square feet for your outlet. This is enough room for a counter, a seating area (if desired), and all the equipment you need to prepare and serve tea and snacks.

The best part? Even if you’re working with a smaller space, Tea Time offers an efficient layout that maximizes every inch. This ensures your customers have a great experience, and you can manage operations smoothly.

Ideal Locations – Where Should You Set Up?

Tea Time franchises work best in high-traffic areas, where there’s a constant flow of people who love their tea breaks! Some of the best places to set up include:

Near colleges or universities: Students are big tea lovers, and they’re always looking for a cozy place to hang out.
Busy markets or shopping areas: These locations naturally attract people who might want to grab a quick cup of tea while shopping or running errands.
Food courts or malls: These areas already draw in large crowds, so your franchise can benefit from the foot traffic.
Transport hubs like bus stations or train stations: People waiting for their transport will appreciate a quick tea break.

Essentially, anywhere with lots of foot traffic is a great choice for a Tea Time franchise!

Where NOT to Set Up

While Tea Time outlets are versatile, there are some places that may not work as well. For example:

Very low-traffic areas: If people aren’t passing by often, your franchise may struggle to get customers.
Remote areas: Locations far from main roads or busy neighborhoods may limit your customer base.
Too close to competitors: While it’s good to have some competition, being too close to a similar business can divide the potential customer base.

What Tea Time Looks for in a Location

When considering a location, Tea Time looks at factors like:

Visibility: Your outlet should be easy for people to spot.
Foot traffic: The more people who walk by, the higher your chances of attracting customers.
Accessibility: Make sure customers can easily get to your franchise, whether by car, foot, or public transport.

How Location Affects Your Profit

Choosing the right location can have a significant impact on your sales and profit potential. A prime location (such as near a busy college or shopping area) can help bring in more customers, leading to higher sales and faster returns on your investment.

5. Support and Training for Franchisees

Before you open your doors to customers, Tea Time provides extensive training to ensure you know everything there is to know about running your business. This includes:
- Product knowledge: You’ll learn all about the teas, snacks, and drinks you’ll be serving, so you can confidently recommend items to your customers.
- Operations training: From preparing drinks to managing inventory and handling day-to-day tasks, you’ll learn the ins and outs of running the franchise.
- Customer service: You’ll be trained on how to provide top-notch customer service, creating a welcoming atmosphere that keeps people coming back.
This training typically lasts a few weeks and is hands-on, so you can get a feel for the business before you start operating.
Ongoing Support – You’re Always Supported
Even after your franchise is up and running, Tea Time continues to support you through:
- Regular check-ins: The support team will stay in touch with you regularly to ensure everything is running smoothly. If you face any challenges, they’re there to help.
- Marketing materials: You’ll get access to ready-made promotional materials and advertising campaigns to help you attract customers.
- Operational support: Whether it’s advice on inventory management, sales strategies, or dealing with suppliers, you’ll have access to a network of experts to guide you.
Franchisee Network – Learning from Peers
One of the best parts of being a Tea Time franchisee is being part of a community. You’ll be able to connect with other franchisees who share the same experiences and can offer valuable advice. Whether through online forums, regional meetups, or franchisee events, you can learn from each other and share tips on how to succeed.
Troubleshooting – Help When You Need It
Running a business comes with its challenges, but with Tea Time, you don’t have to face them alone. If you run into any issues, whether it’s with staff, equipment, or sales strategies, you can count on Tea Time’s team to step in and help. They provide troubleshooting support and guidance to ensure you stay on track.
Marketing and Branding Assistance
Another area where Tea Time shines is in marketing. They provide you with a clear marketing plan, including:
- National and regional campaigns: So, you don’t have to worry about generating awareness on your own.
- Social media support: You’ll get tips on how to leverage social media platforms to reach more customers and build a local following.
- Local promotions: Ideas for community events or special discounts to draw in more people.

6. Steps to Acquire a Tea Time Franchise

Initial Inquiry: Contact Tea Time through their official website or franchise portal.=
So, you’ve decided that a Tea Time franchise is the right fit for you. That’s great! Now, let’s go over the simple steps you’ll need to take to turn your dream into reality. The process is straightforward, and with the right guidance, you’ll be running your own Tea Time franchise in no time.

Research and Inquiry – Start with the Basics

The first step is to do some homework. Before committing, make sure you fully understand what it takes to run a Tea Time franchise. You can start by:
- Visiting the Tea Time website to get a sense of the brand and its business model.
- Reaching out to the franchise team for more details about the cost, the process, and what’s involved.
- Talking to current franchisees to get insights into their experiences.
Once you have a clear idea, you can confidently move forward.

Application and Screening – Getting Started

Next, you’ll need to submit an application. This includes providing some basic personal and financial information. Tea Time’s team will review your application to ensure you meet the basic requirements, like having the right investment capacity and business mindset.

This step helps determine if you’re a good fit for the brand, and vice versa.

Meeting and Discussion – Let’s Talk!

After the application is approved, you’ll move on to a more personalized discussion. This is your chance to meet with the franchise team, ask questions, and really get to know the business. Some of the things you’ll discuss:
- Your financial capability and ability to fund the franchise
- Your preferred location and whether it aligns with Tea Time’s target markets
- The support and training you can expect
It’s also a time for you to voice any concerns or thoughts you may have about the business.

Signing the Franchise Agreement – Officially Onboard

If all goes well and both you and Tea Time are happy with the discussions, it’s time to sign the franchise agreement. This contract outlines the terms of your partnership, including:
- Franchise fees
- Ongoing costs (like royalty and marketing fees)
- Support provided
- Duration of the agreement
Once signed, you’re officially a Tea Time franchisee! 🎉

Location Selection and Setup – Getting Ready to Open

With the agreement in place, the next step is to choose your location. Tea Time will assist you in finding the perfect spot—whether it’s near a busy college or in a popular shopping area.

Once the location is selected, the next step is to set up your shop. This includes:
- Interior design and arranging the space according to Tea Time’s brand guidelines.
- Hiring and training staff to make sure they know the business inside and out.
- Stocking your inventory with all the products you’ll need.
Tea Time provides plenty of support during this phase, ensuring that everything goes smoothly.

Training and Launch – Your Franchise is Ready!

Before you officially open your doors to customers, Tea Time will provide you with training. You’ll learn everything you need to know, from preparing drinks and managing inventory to providing excellent customer service.

Once you’ve completed the training, it’s time to launch your franchise! You’ll be ready to serve tea to the public and start building your customer base.

7. Conclusion

Starting a Tea Time Franchise Cost is more than just owning a business—it’s about becoming part of a brand that values quality, community, and success. With a solid support system, straightforward costs, and a proven business model, a Tea Time franchise can be the perfect opportunity for those looking to enter the world of entrepreneurship.
Whether you’re a fresh graduate or an experienced businessperson, Tea Time offers low-risk, high-reward potential. The process to acquire a franchise is simple and guided, from your initial inquiry to launching your store and beyond. Plus, with ongoing support, training, and marketing assistance, you’ll have everything you need to make your franchise a success.
So, if you’re ready to take the next step into the world of tea, enjoy the flexibility of running your own business, and be part of a growing brand, a Tea Time franchise could be your perfect opportunity.
Take the leap, and let Tea Time help you brew success!

Need more information or ready to get started? Feel free to reach out—your tea journey starts now!

1. What is the total cost to open a Tea Time franchise?
The total cost to open a Tea Time franchise typically ranges from ₹8 lakhs to ₹15 lakhs, depending on the location and the size of the outlet. This includes the initial franchise fee, setup costs, equipment, and inventory. The exact cost can vary based on specific requirements.

2. How long does it take to open a Tea Time franchise?
From signing the franchise agreement to officially opening your store, the process typically takes around 3 to 6 months. This timeline includes location setup, training, and stock procurement. Tea Time provides extensive support to ensure a smooth setup.

3. Do I need prior experience to own a Tea Time franchise?
No prior experience in the food and beverage industry is required to own a Tea Time franchise. Tea Time offers comprehensive training and ongoing support to guide you through operations, from preparing tea to managing the business efficiently.

4. What kind of ongoing fees do Tea Time franchisees need to pay?
Franchisees are required to pay a royalty fee of about 5% to 8% of their monthly revenue, depending on the agreement. Additionally, there’s a marketing fee to help with national or regional campaigns. These fees help maintain the brand’s strength and visibility.

5. Can I operate a Tea Time franchise as a side business or part-time?
Operating a Tea Time franchise requires your full-time attention, especially during the initial stages. Running the day-to-day operations, ensuring excellent customer service, and managing staff all require consistent involvement. While you can hire a manager, it's recommended to be actively engaged, especially in the early days.

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