Chai Point Franchise: Cost, Requirements & How to Apply (2025)

If you’ve ever thought about turning India’s love for chai into a profitable business, the Chai Point franchise is one of the hottest opportunities in 2025. With over 170+ outlets in India and serving 3,00,000+ cups of tea every single day, Chai Point has built a trusted brand in a market where chai is not just a drink, but an emotion. Let’s break down the franchise cost, requirements, and step-by-step application process in the simplest way possible.

What is the Chai Point franchise cost in 2025?

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“India runs on Chai” — Chai Point (company motto, cited by Tarun Khanna), Chai Point, leading Indian tea chain

Starting India’s leading chai chain business requires smart financial planning. A Chai Point franchise in 2025 needs an investment between INR 25-30 lakhs. This amount covers everything you need from the original setup to working capital that ensures smooth operations in your first few months.

Initial investment range (INR 25–30 lakhs)

You should understand these key aspects before starting your Chai Point franchise:

1. Assess your budget – Make sure you have INR 25-30 lakhs ready as capital
2. Calculate location premium – Prime locations might push your costs higher
3. Factor in city differences – Big cities usually cost closer to the maximum amount
4. Account for format variations – Your costs change based on kiosk or full-store models
5. Plan for contingencies – Keep an extra 10% ready for unexpected costs

Breakdown of setup costs

Your initial investment splits into these essential components:

1. Franchise Fee: Brand rights and business systems cost INR 1.5-3 lakhs
2. Security Deposit: You’ll pay INR 2 lakhs (refundable)
3. Setup & Interiors: Store design and furniture needs INR 5-10 lakhs
4. Equipment & Chai Bots: Specialised tea-making machines cost INR 2-3 lakhs
5. Initial Inventory: First stock of tea and supplies takes INR 2 lakhs
6. Working Capital: You’ll need a minimum of INR 5 lakhs for 3-6 months

Ongoing operational expenses

Your regular expenses will include:

1. Rent: Your location determines this cost
2. Utilities: You’ll pay for electricity, water, and smooth internet
3. Staff Salaries: The core team consists of 4-5 people
4. Inventory Replenishment: Regularly restock tea, milk, and snacks
5. Marketing: Local promotion activities

Is there a royalty or franchise fee?

Chai Point works on a revenue-sharing model:

1. Initial Franchise Fee: You pay INR 1.5-3 lakhs once
2. Royalty Fee: Monthly revenue sharing of 6%
3. Agreement Term: Contracts run 7-10 years and are renewable[71]
4. Marketing Contribution: This might be part of your royalty percentage

Comparison with other tea franchises

The market offers several options:

1. Research alternatives – Look into Chaayos, Tea Post, and local brands
2. Compare investment ranges – Chai Point asks for INR 25-30 lakhs while Chai Top Up needs INR 2-5 lakhs
3. Assess ROI timelines – You might break even in 18-24 months
4. Brand strength – Chai Point runs 120+ company-owned and 25+ franchise stores
5. Profit margins – You can expect 15-25% returns

What are the requirements to open a Chai Point outlet?  

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Opening a Chai Point franchise needs more than just financial investment. Your outlet must meet specific operational requirements. These standards will give a consistent brand experience that customers expect across India.

Minimum space needed (600–800 sq. ft.)

The right space plays a crucial role in your outlet’s success:

1. Identify appropriate commercial space – You need 600-800 sq. ft. of carpet area
2. Ensure proper ceiling height – Your space needs at least 10 ft. in height
3. Verify electrical capacity – A 10-15 KW power connection is essential
4. Check water supply – You must have an uninterrupted water supply
5. Confirm ventilation options – Good exhaust systems help prepare chai properly

Ideal location types (tech parks, high streets)

A Chai Point outlet runs in strategic locations:

1. Research tech parks – Look for IT hubs with dense employee populations
2. Scout high-traffic commercial areas – Business districts generate excellent sales
3. Analyse nearby competition – Make sure the area isn’t flooded with similar options
4. Review foot traffic patterns – Rush hours should show good customer potential
5. Think over accessibility – Easy parking and public transport access work best

Staffing needs and training

Your team creates the authentic Chai Point experience:

1. Hire 4-5 original staff members – This includes your store manager and service team
2. Send the core team for training – Mountain Trail Academy offers complete programs
3. Learn standardised processes – Master chai preparation and food handling protocols
4. Implement hygiene standards – Your staff must follow strict cleanliness rules
5. Develop customer service skills – Create that warm Chai Point atmosphere

Brand compliance and quality standards

Brand integrity remains essential:

1. Follow store design guidelines – Match Chai Point’s signature look
2. Implement standardised menu – Stick to approved products only
3. Use approved ingredients only – Get supplies from authorised vendors
4. Maintain equipment standards – Keep chai-making equipment in top shape
5. Participate in quality audits – Regular checks help maintain standards

What are the benefits of owning a Chai Point franchise?

A Chai Point franchise provides many strategic advantages beyond tea sales. The brand’s proven systems and market recognition lower your business risks compared to starting an independent tea shop.

Strong brand recognition

Starting a new brand takes years, but a Chai Point franchise gives you immediate credibility:

1. Build on proven success – Join India’s largest organised chai retail network
2. Boost from existing marketing – Get value from nationwide campaigns and brand visibility
3. Use professional branding – Get access to refined logos, store designs, and marketing materials
4. Grow through social media – Join Chai Point’s thriving online community
5. Start with customer trust – Skip months of building brand credibility

Pre-established customer base

Your business starts with ready customers from day one:

1. Serve loyal fans – Welcome customers who actively look for Chai Point stores
2. Work with corporate clients – Build on existing relationships with office complexes
3. Welcome regular customers – Serve people who know Chai Point from other locations
4. Use successful marketing – Apply strategies that work at other outlets
5. Begin with strong sales – Skip the usual slow start of new businesses

Support from Mountain Trail Academy

The training program gives you detailed operational knowledge:

1. Learn the basics – Master operations, customer service, and product preparation
2. Stay updated – Learn about new products and processes regularly
3. Master management – Understand tea retail business practices
4. Get quick help – Solve operational challenges quickly
5. Improve performance – Learn ways to boost store metrics and profits

Standardised pricing across locations

Set prices come with your business model:

1. Use proven prices – Apply rates that work across all stores
2. Skip pricing errors – Benefit from years of market research
3. Stay competitive – Match market rates for premium chai
4. Plan finances better – Make accurate forecasts with real data
5. Change prices smartly – Update rates based on market conditions

Eco-friendly packaging and a unique service model

Stand out with Chai Point’s green approach:

1. Serve responsibly – Draw eco-conscious customers with eco-packaging
2. Keep chai hot – Use special delivery containers that maintain temperature
3. Add smart technology – Install Chai Point’s BoxC chai dispensers
4. Cut waste – Follow proven waste reduction systems
5. Go green – Join brand-wide environmental programs

How to apply for a Chai Point franchise in 2025?  

Want to start your own chai business? The Chai Point franchise application needs careful planning and attention to detail.

Step-by-step application process

1. Initial inquiry – Fill out the franchise form on Chai Point’s website
2. Preliminary screening – The franchise team reviews your application
3. Introductory meeting – Meet Chai Point representatives to discuss your vision and experience
4. Location assessment – Chai Point’s specialists check your proposed site
5. Business plan submission – Submit your detailed business and financial plans

Online vs offline application methods

You can choose between two ways to apply based on your priorities:

1. Online application
   • Complete the form at chaipoint.com
   • Get instant confirmation when you submit
   • Check your application status online
   • Send documents digitally
   • Book video calls for first discussions
2. Offline application
   • Go to Chai Point headquarters in Bangalore
   • Meet the team at franchise expos
   • Mail your application package
   • Meet the franchise team in person
   • Visit existing stores to learn more

Documents required

You’ll need these documents ready:

1. Personal identification – PAN card, Aadhaar, and address proof
2. Financial statements – Bank statements showing investment capability
3. Business experience – Resume with relevant background
4. Property details – Documents of your chosen location (if available)
5. Letter of intent – Written statement about your interest

Expected response time from the brand

Here’s what to expect during your application:

1. Initial acknowledgement – 3-5 business days
2. Preliminary screening results – 1-2 weeks
3. First interview scheduling – 2-3 weeks
4. Location approval – 4-6 weeks, depending on the site
5. Final approval decision – 2-3 months total

Is the Chai Point franchise profitable in 2025?  

Many entrepreneurs who think about this popular tea chain want to know about its profit potential. This 15-year-old brand with multiple revenue channels gives franchise owners great opportunities to make money.

Revenue streams: outlets, delivery, BoxC

You can boost your earnings through these main channels:

1. In-store sales – Core revenue comes from walk-in customers and the dine-in experience
2. Delivery services – Team up with food delivery platforms to reach more customers
3. BoxC smart dispensers – These proprietary machines in offices create passive income
4. Corporate catering – Supply chai and snacks to meetings and events
5. Retail products – Packaged chai and merchandise bring in extra revenue

Average monthly earnings

Your earnings typically follow this pattern:

1. Original months (1-6) – ₹1.5-2 lakh monthly revenue with thin margins
2. Growth phase (7-12) – ₹2.5-3.5 lakh monthly as profits improve
3. Established operation (12+ months) – ₹3.5-5 lakh monthly with 15-25% profit margins
4. Seasonal fluctuations – Sales jump 20-30% during the winter months
5. Multiple location advantage – Running 2+ outlets improves efficiency and profits

Break-even timeline

Franchisees reach break-even through:

1. Months 1-6 – Build customer base and run efficient operations
2. Months 7-12 – Cut costs while growing regular customers
3. Months 13-18 – Investment recovery usually starts here
4. Months 18-24 – Most franchisees hit complete break-even
5. Year 3 onward – Profits grow and business expands

Real-life success stories

These franchisees show what’s possible:

1. Mumbai franchisee – Got investment back in 22 months at an office park location
2. Bangalore tech corridor – Beat average revenue by 30% through corporate deals
3. Pune franchise cluster – Runs three spots efficiently, broke even in 15 months
4. Delhi-NCR franchisee – Opened second location after 30 months of success
5. Hyderabad IT park – Mixed BoxC and in-store model created diverse income streams

Success Story

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Chai Point’s success stories are a great way to learn about their franchise opportunities. Harvard graduate Amuleek Singh Bijral started Chai Point in 2010 with a single kiosk in Bangalore, and today it has grown to more than 170 stores nationwide.

Success Story 1: Bangalore Tech Park Partner
A franchise in Bangalore’s technology corridor achieved remarkable growth by targeting IT professionals. The location earned 30% more than average revenue through mutually beneficial alliances and loyalty programs. The brand’s strong reputation among urban professionals played a key role in this success.

Success Story 2: Multi-Store Operator in Pune
An enterprising franchisee in Pune created a cluster model with three Chai Point locations. The business reached break-even in just 15 months by using economies of scale across multiple outlets. This was much faster than the usual 18-24 month timeline.

Success Story 3: Delhi-NCR Growth Story
A franchisee began with one store in Delhi’s business district and expanded to a second location in just 30 months. Their success came from embracing Chai Point’s integrated approach. They combined in-store sales with innovative BoxC dispensers in nearby offices to create multiple revenue streams.

These examples show how Chai Point’s “partner franchise model” creates genuine growth opportunities for dedicated entrepreneurs in a variety of Indian markets.

Conclusion

If you want to tap into India’s never-ending love for chai, the Chai Point franchise is a premium yet profitable opportunity in 2025. Yes, the investment is higher compared to small tea stalls, but the brand trust, tech support, and scalability make it worth it. With the right location and good management, you can recover costs in under 2 years and enjoy steady profits.

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