Breaking Down the Costs of Opening an Ice Cream Franchise

Opening an ice cream franchise in India requires careful planning and financial consideration. The initial franchise fee in India can range from ₹7 lakh to ₹35 lakh, depending on the brand. This fee grants you access to the franchise system and brand name. The next significant cost is the real estate investment. Renting or purchasing a commercial space can vary widely based on location, but it typically ranges from ₹10 lakh to ₹50 lakh, depending on the city and size. Renovating the space to meet franchise standards may add an additional ₹20 lakh to ₹60 lakh. Equipment and furnishings, such as ice cream machines, freezers, and display cases, can cost anywhere from ₹10 lakh to ₹30 lakh. You’ll also need to budget for initial inventory, including raw materials, ice cream ingredients, and packaging, which could cost ₹2 lakh to ₹5 lakh. Marketing costs in India may vary, but initial advertising campaigns and promotions are likely to range from ₹3 lakh to ₹10 lakh, especially in urban areas. Monthly operational costs include rent, salaries, utility bills, and royalty fees, which typically range from 5% to 7% of your monthly revenue. In total, the investment required to open an ice cream franchise in India can range from ₹50 lakh to ₹1.5 crore, depending on the location and scale of operations.