Chennapatnam Filter Coffee Franchise Investment: Fees, Setup Costs and Budget Planning

Starting a coffee franchise requires a clear understanding of the initial investment and the costs involved in setting up an outlet. Before choosing a franchise, it is important to know how much the franchise fee is, what the setup includes and how much money you may need to prepare.

Chennapatnam Filter Coffee (CFC) offers café and kiosk franchise models with different starting investment amounts. Its franchise brochure provides an indicative cost breakdown for both options, helping interested business owners understand the initial expenses.

In this article, we look at the franchise fees, setup costs and budget planning details mentioned in the Chennapatnam Filter Coffee franchise brochure.

Chennapatnam Filter Coffee Franchise Investment

The investment depends on the outlet model you choose. According to the brochure, the café model starts at approximately ₹7 lakh, while the kiosk model starts at approximately ₹9 lakh.

The brochure lists the franchise fee, equipment and initial raw materials, and establishment costs as separate components of the investment.

1. Café Franchise Investment

The café model has a starting investment of approximately ₹7 lakh, according to the brochure.

The listed cost breakdown is as follows.

The franchise fee is listed as ₹4 lakh plus 18% GST. The brochure identifies the brand fee, on-site training and marketing as inclusions in this fee.

The café establishment cost is listed separately from the equipment and initial raw materials. Before proceeding, ask the franchise team for a detailed breakdown of the establishment cost and confirm exactly what is covered.

2. Kiosk Franchise Investment

The brochure lists the kiosk model as starting at approximately ₹9 lakh.

The indicative cost breakdown is as follows.

The kiosk establishment cost is higher than the café establishment amount shown in the brochure. The total investment figures are indicative, so the final amount should be confirmed with the company before making a financial commitment.

A kiosk may suit someone considering a smaller outlet format, but the final decision should depend on the space requirements, proposed location, setup expenses and expected customer demand.

What Is the Chennapatnam Filter Coffee Franchise Fee?

The brochure lists a one-time franchise fee of ₹4 lakh plus 18% GST for the café and kiosk models.

At the stated rate, the GST on ₹4 lakh is ₹72,000, making the fee ₹4.72 lakh including GST.

The brochure lists the following inclusions in the franchise fee.

Brand fee

The franchise fee includes the brand fee, according to the brochure. Ask the company about the applicable agreement terms and the rights provided to the franchise owner.

On-site training

On-site training is listed as an inclusion. Confirm the training duration, subjects covered, staff participation and whether any additional costs apply.

Marketing

Marketing is also listed as part of the franchise fee. Ask the company which marketing activities and materials are included and whether local promotions require a separate budget.

The brochure also mentions raw material supply as part of its franchise offering. Confirm the supply terms, product costs, ordering process and delivery arrangements directly with the franchise team.

Understanding the Difference Between the Franchise Fee and Setup Cost

The franchise fee and the total investment are not the same thing.

The franchise fee is the amount charged for the franchise arrangement. Setup costs cover other items required to establish the outlet, such as equipment, initial raw materials and establishment expenses.

For example, the brochure lists the café model's franchise fee as ₹4 lakh, while the total indicative investment is approximately ₹7 lakh. The remaining amount is allocated to equipment, initial raw materials and café establishment.

For the kiosk model, the brochure lists the same franchise fee but a higher establishment cost. This is why it is important to compare the full cost breakdown instead of looking only at the franchise fee.

How to Plan Your Franchise Budget

Before selecting a CFC franchise model, prepare a budget using the figures provided by the company and the actual costs of your proposed location.

Step 1: Decide which model suits your budget

Compare the indicative starting investment for the café and kiosk models.

The brochure lists the café model at approximately ₹7 lakh and the kiosk model at approximately ₹9 lakh. These figures can serve as an initial reference when deciding which model to discuss with the company.

Step 2: Confirm GST and other charges

The brochure lists the standard franchise fee as ₹4 lakh plus 18% GST.

Ask for a written quotation showing the franchise fee, applicable taxes, establishment expenses and any additional charges. Confirm whether the stated total investment includes all applicable taxes.

Step 3: Check what the establishment cost covers

The brochure gives separate establishment figures for the café and kiosk models. Request an itemised list of what these amounts cover, including any work or equipment that may be charged separately.

This will help you avoid relying on a starting figure without understanding its inclusions.

Step 4: Ask about initial raw materials and supplies

The brochure allocates approximately ₹1.5 lakh to equipment and initial raw materials for both the café and kiosk models.

Confirm the items included in this amount, the quantities supplied and whether further stock purchases are needed before opening.

Also ask how ongoing raw material orders are placed and paid for.

Step 5: Plan for other expenses

The brochure's starting investment figures do not provide a complete itemised list of every possible business expense.

Before finalising your budget, ask the company whether rental deposits, licences, registrations, utility connections, working capital and other location-specific costs are included or need to be budgeted separately.

Do not assume that an expense is covered unless it is clearly stated in the written quotation or agreement.

What About Highway Franchise Investment?

The brochure also lists a separate franchise option for highway outlets. Its franchise fee is shown as ₹6 lakh plus 18% GST, with establishment costs starting at approximately ₹35 lakh.

This is a different outlet model from the café and kiosk options discussed above. If you are considering a highway location, request a separate investment breakdown from the company rather than applying the café or kiosk figures to it.

Why You Should Request a Current Cost Breakdown

The investment amounts in the brochure are approximate and may vary depending on the location. The brochure does not establish that the stated amounts will apply to every new outlet.

Before paying a franchise fee or committing to a property, request written confirmation of:

• The current franchise fee and applicable GST

• The complete establishment cost

• Equipment and initial raw materials included

• Any additional setup charges

• Ongoing supply and payment terms

• The support included in the franchise arrangement

• Any expenses not covered by the stated starting investment

Review the agreement carefully so that you understand the financial commitments before proceeding.

Enquire About a Chennapatnam Filter Coffee Franchise

If you are planning to start a coffee business, the cafe and kiosk models outlined in the Chennapatnam Filter Coffee brochure provide two starting points for discussing investment.

The café model is listed at approximately ₹7 lakh, while the kiosk model starts at approximately ₹9 lakh. The final investment should be confirmed with the company based on your preferred model and proposed location.

Contact Chennapatnam Filter Coffee to request the latest franchise details, an itemised cost estimate and clarification on what is included in the investment.