Description

1.What is the size of the shop required for starting a Tea Time Unit Franchise?

The minimum size of the shop should be 100 sq.ft. However, the ideal space would be of 150 sq.ft or more. 

2. What is the Franchise Fee?

 The unit franchise fee is Rs. 425,000/- + GST. It includes the brand fee, marketing fee and the cost of all equipment such as hot snacks case, refrigerator, deep freezer, induction stove, high-pressure gas stove, fruit mixer, tea utensils, tea powder, branded glasses, name board, menu board etc. and initial stock. (Please check Annexure – 1 (page 5) for the complete details of the startup kit) 

3.Is the franchise fee refundable? 

The franchise fee is not refundable.

4.What are the other initial expenses apart from the franchise fee of 4.25lakhs?  

The franchisee (investor) is responsible for the interior work, painting, and furniture etc. (The approximate cost can be anywhere between Rs. 50,000/- to Rs.80,000/-). (Please check Annexure – 4 (page 9) for the details of the interior work to be done by the franchisee (investor)) Shop security deposit (if it is a rented shop) will also be extra.

5.Are the equipment provided (fridge, freezer, etc.) branded? 

Yes. All are branded products (LG, Samsung, Blue Star, etc.) and comes with a warranty. 

6.How long is the franchise agreement? Is it renewable?

 The franchise agreement is valid for 5 years. At the end of the 5th year, you can renew the agreement by paying 10% of the franchise fee. 

7.Will the brand provide stock for preparing everything on the menu when the initial stock is over? 

The Brand will supply all the primary ingredients. However, there are some items which the franchisee has to buy locally. Please check Annexure – 2 (page 7) for the list of items supplied by the Brand and the price. Please check Annexure – 3 (page 8) for the list of items the franchisee has to buy from the local market. 

 8.What are the snack items supplied by the brand? 

The Brand supplies only Osmania Biscuits and Fruit Biscuits. The franchisee can keep the local snack items at the shop with the approval from the brand. The franchisee can either prepare the snacks or get it from good snacks vendors. The quality of the snacks should not be compromised. 

9.Can the franchise add extra drinks other than the snacks to the menu? 

Tea time does not entertain any items other than its menu to be sold from its outlet. However, considering the regional flavour and demands, a few selected drinks can be added with the written approval from the brand. No other tea varieties can be added. 

10.Will the Brand provide staff? 

No. However, the Brand provides training to your selected staff. You need a minimum of 2-3 workers to run the shop. These workers do not need to have any prior experience in the hotel field. The reason is that all the drinks at Tea Time are prepared using formulas. 3 days of training is enough to learn Tea Time preparation methods. 

11.Will the training be charged? 

You have two options for training your staff. Option-1) You can send your staff to any of our selected shops in your nearest location or else to our lab at Hyderabad. The training at these locations will be completely free, but the cost of your staff’s travel, food and accommodation will have to be borne by you. Option-2) Alternatively, we can send one of our chefs to your shop for training for 3-4 days, which will cost you a training fee of 10,000/-. You will also have to bear the expenses of travel, food and accommodation of the trainer. You can decide whether you need the free training at any of our selected locations or paid training by one of our chefs at your shop. 

12.What are the average daily sales at existing stores? 

The daily sale at Tea Time outlets ranges between Rs.8,000 to Rs.35,000. However, on average, you can expect a regular sale of 10,000 or more. The primary factor deciding the daily sale is the location of the shop. 

13.What is the monthly royalty amount payable to the Brand?

You have to pay 3% of your total monthly sales as royalty to the Brand. If the total sale is 1 lakh, the royalty fee will be 3,000. If the sale is 3 lakh, the royalty fee will be 9,000/-. Likewise, the royalty should have been 15,000 for a sale of 5 lakh, but the Brand has put a cap on royalty at 9,000 rupees. So the royalty fee will be Rs. 9,000 even if your sale is 3 lakh and above.  

 14.Does the brand have acentralisedbilling system?  

Yes. However, from the brand side, the POS system is not mandatory for a unit. So it is provided as an optional choice for the franchise owners. In such a case, an additional amount of Rs 25,000/- will be added to the franchise fee. With the POS system, the franchise will cost Rs 4,50,000 + GST.  

15.Foroutlets without a POS system, how will the brand calculate the monthly sales?  

We have different cups for all the products based on the price range. There’s a cup for 10 rupees tea, another for 49 rupees milkshake etc. So at the end of the day when you count the balance cups at your shop, you’ll get the total sale of the day. Also, since we are making all the drinks using a formula, we’ll be able to calculate how many cups of tea is sold using 1 kg tea powder. 

16.Still, an outlet without a POS system can manipulate the sales figure. How will the brand address this issue?

 The unit franchisee will procure all raw materials exclusively from the Franchisor/District Franchisee only. The purchase of raw materials/ products from anywhere else  without the written permission from the brand will be treated as a violation of the agreement, thus making the agreement void. In that case, if the Unit Franchisee is found selling the products and raw materials of other brands to the customer, the unit franchisee shall be liable to pay a fine to the brand. Without prejudice to any other right, recourse and/or remedy that Brand may have under law and/or equity and/or under the agreement will collect an amount equivalent to INR10,00,000/- (INR.Ten Lakh only) as liquidated damages and not as a penalty. Brand representatives will be regularly visiting the outlet without prior notice. The district franchisee will also keep track of all the unit franchises. Our customer care number also will be placed at all outlets to report any complaints about the service. 

17.Will you open a new franchise near my shop? Is there a specified distance between Tea Time shops? 

There is no specified distance. We will not open a shop at a location because of which your business will be affected. For, e.g., 2 shops located on both sides of the highway have different customers. However, if we get an opportunity to give an outlet near an existing one, the current franchisee will be given that opportunity first.

18.What is the process if an investor is interested to start the Tea Time Franchise?

The investor has to pay at least 50% of the Franchise Fee as confirmation. A Letter Of Intent (LOI) will be signed against this amount and a payment confirmation will be given to the investor. The balance amount should be paid within 15 days after signing the LOI. The agreement will be signed at the time of full and final payment. The brand will supply all the items including the startup kit within 10 days after receiving the full and final payment. The franchisee has to inform the brand regarding the opening of the outlet at least 10 days before so that the brand can ensure the availability of the chef for the training. 

19.Is royalty applicable on the snack items? 

Yes. Royalty is calculated based on the total sale which includes snacks. The franchisee has to report the sales of all the items including the snack items. The franchisee should keep in mind that, they use the brand name to sell and promote all these items.

20.Can the franchisee use its own glasses for serving teas and other items? 

No. It is strictly not allowed. The franchisee has to sell all the items in Tea Time glasses only. However, if a customer specifically asks for other drinking glasses, exceptions can be made. The numbers can be hardly one or two in a month.

21.How and when can the franchisee report the sales to the brand? 

The franchisee has to send daily, weekly and monthly sales report to the brand via Whatsapp.