FICO MODEL (Franchise Invested Company Operated Model) - Investment
Kumbakonam Filter Coffee™ COUNTER: 7.5 lakhs *
(iii) Total Shop Advance: 2.5 lakhs (projected) (refundable) – landowner to provide basic setup
(iv) Working Capital and Incidental Expenses 1 lakh for purchase of products and snacks
This cost is applicable for the region Tamil Nadu only. Rest of Other states within India – investments may vary. International franchisee investments may vary from country to country. The investment structure and fee may vary based on the time of allocation of franchise and other factors affecting forex rates.
Sample Returns: (these are indicative figures on coffee sales, not actual)
Fixed Cost per month
EB Utilities, Maintenance and Other Outlet Expenses (10000)
Avg Product Price 20
Total no. of sales per day = 500 Gross Margin per day = 500 x 9 = 4500 (9 is actual margin – cost / coffee)
Gross Margin per month = 30 x 4500 = 135000
Operator = 15000 (Salary) plus Revenue share = 12000 (Range: 10000 to 15000)
Investor payout = 24000 (Range: 20000 to 30000)
M.G.A or M.R.S whichever is higher payable on a monthly basis.
Revenue Share: Landlord – 4%, Operator – 4%
Investment Returns: 26% to 38% p.a.