How Much Does It Cost to Open a Chai Franchise in Telangana? 2026 Guide
Quick answer: Chai Bunk's current franchise package is ₹3.75 lakh + 18% GST, which works out to ₹4,42,500 including GST. The package covers specified equipment, branding, furniture, opening stock, training and other launch support. Shop rent, deposit, civil/electrical work, staff salaries and ongoing stock are additional.
If you are searching for a chai franchise in Telangana, the franchise fee is only one part of the investment. The property you choose, the amount of site work required and your opening working capital can materially change the total amount you need before launch.
Chai franchise cost in Telangana: the current number
For the current Chai Bunk package, the advertised franchise price is ₹3,75,000 before GST. At 18% GST, the package comes to ₹4,42,500 including GST.
Cost component | Current Chai Bunk package |
Franchise package | ₹3,75,000 + GST |
GST at 18% | ₹67,500 |
Package total including GST | ₹4,42,500 |
Monthly royalty | ₹0 |
What is included in the ₹3.75 lakh package?
The current franchise brochure is unusually specific about what sits inside the package. It lists the following opening components:
Kitchen equipment: 77 individual pieces across 40 line items.
Branding and display counter.
Transportation within 200 km of Hyderabad.
4 themed tables and 16 chairs.
Five days of on-site master training.
Marketing and design support including a 3D café walkthrough, 2D floor plan, influencer reel and launch creatives.
Free opening raw materials across 25 SKUs.
Opening disposables including 2,000 tea cups and other consumables.
FSSAI food licence application and processing support.
The equipment included is more than just 'equipment support'
The brochure's equipment annexure lists items such as a 5-litre tea boiler, two-burner gas table, induction cooktop, deep fryer, griller, microwave oven, blender, 325-litre deep freezer, 175-litre freezer, display counter, vessels, trays, containers and other kitchen accessories.
What is not included in the franchise fee?
Your franchise budget should separately account for the costs connected to the physical property and ongoing operations.
Shop rent and security deposit.
Civil and electrical work.
Interior work that is outside the defined package.
Staff salaries.
Monthly stock purchases after the free opening material is consumed.
18% GST on the franchise fee.
How much should you budget in total before opening?
There is no single Telangana-wide number because rent, deposit and site work vary by property. A practical way to calculate your opening capital is to start with the ₹4,42,500 package including GST and then add your location costs and working-capital buffer.
Start with the franchise package including GST: ₹4,42,500.
Add the shop security deposit and initial rent required by your landlord.
Add civil, electrical and any site-specific work not included in the package.
Add staff hiring and initial payroll requirements.
Keep a working-capital buffer for stock and operating expenses during the first months.
What sales level can a chai franchise generate?
The current Chai Bunk brochure presents several operating scenarios. At ₹5,000 in daily sales, it projects ₹1.50 lakh monthly turnover and ₹37,000 monthly profit. At ₹10,000 daily sales, the projection is ₹3.00 lakh turnover and ₹94,000 monthly profit. At ₹15,000 daily sales, the projection is ₹4.50 lakh turnover and ₹1.43 lakh monthly profit.
The brochure also describes a Tier-2 high-street scenario at ₹12,000 daily sales, ₹3.60 lakh monthly turnover and a 15–25% net margin, corresponding to ₹54,000–₹90,000 monthly take-home in that scenario.
These are projections rather than guarantees. Actual outlet performance depends on location, rent, footfall, operator discipline and market conditions.
What makes the Chai Bunk operating model easier to standardize?
Zero monthly royalty according to the current franchise brochure.
Factory-rate supply of tea, powders, flavours, syrups and disposables through the brand's supply system.
Weight-based recipes instead of depending on a chef's judgement.
Five days of on-site training covering beverage preparation, food assembly, billing, stock entry, hygiene and peak-hour operations.
A stated 2.4 km territory protection rule on the same road and same side, measured by road distance.
What location should you choose in Telangana?
For a compact chai café, the site often matters more than the city name. The current Chai Bunk brochure asks for a 150–300 sq ft main-road or high-footfall location that clears its viability check.
In practice, evaluate residential density, colleges, offices, shopping streets, transport corridors, visibility, parking or stopping convenience, rent and nearby competition before signing a lease.
Questions to ask before buying any chai franchise
Exactly what equipment is included and what is excluded?
Is GST included in the advertised price?
Is there a monthly royalty, technology fee or other recurring charge?
What opening stock is supplied and what happens after it is consumed?
What training is provided at the outlet and for how long?
What rent and site assumptions are used in the profit projections?
Can you visit existing outlets and speak to franchisees?
What territory or location protection is written into the agreement?
Chai franchise cost in Telangana: FAQ
How much does it cost to open a chai franchise in Telangana?
The current Chai Bunk franchise package is ₹3.75 lakh + 18% GST, or ₹4,42,500 including GST. Your total launch capital will be higher if you need to pay rent, deposit, site work, staff and working capital.
Is GST included in the franchise fee?
No. The current package is ₹3.75 lakh plus 18% GST.
Does Chai Bunk charge monthly royalty?
The current franchise brochure states a monthly royalty of ₹0.
What space is required for a Chai Bunk franchise?
The current brochure specifies a 150–300 sq ft main-road or high-footfall site that passes the brand's viability check.
What costs are outside the franchise package?
Shop rent and deposit, civil and electrical work, staff salaries, ongoing stock after the free opening supply, and GST are outside the base franchise fee.
Are the profit figures guaranteed?
No. The brochure presents projections based on operating outlets and states that actual results vary with location, rent, footfall, operator discipline and market conditions.
The bottom line
For the current Chai Bunk offer, the franchise package is ₹3.75 lakh + 18% GST, or ₹4,42,500 including GST. That figure should be treated as the package cost, not automatically as the complete cost of opening a store at any location.
For a realistic investment decision, add the property-related expenses, manpower requirements and working-capital buffer for your specific location. Then compare the complete package and operating economics rather than comparing franchise fees alone.
Comments