FOFO MODEL (Franchise Owned Franchise Operated Model) - Investment
Kumbakonam Filter CoffeeTM KIOSK: 1 lakh + Variable Cost*
Note: This Franchise Model is also for Existing Coffee/Tea Shop
(iii) Total Shop Advance: 1 lakhs (projected) (refundable) – landowner to provide basic setup
(iv) Working capital 0.5 lakh for purchase of coffee and snacks (Cash and Carry model).
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 Royalty & Marketing (10500)
Avg Product Price 20
Total no. of sales per day = 250
Gross Margin per day = 250 x 9 = 2250 (9 is actual margin – cost / coffee)
Gross Margin per month from coffee = 30 x 2250 = 67,500
Net margin – 22000
Return of Investment – 14 months