The Indian dairy beverage market is experiencing an unprecedented growth in the year 2025, and with health-conscious consumers looking up more and more into drinking in a hassle-free manner in the form of traditional drinks of Indian fermented provisional milk products like probiotics. One of the new entrants, Chhaswala has developed a niche market of its buttermilk, lassi, and milk-based products. Having taken up more than 100 outlets in Gujarat, Maharashtra, and Madhya Pradesh, this franchise has given a good opportunity to entrepreneurs who want to venture into the organised dairy beverage market.
The knowledge of the Chhaswala franchise cost would be highly essential to prospective investors in the mid-range franchising opportunities. This is a detailed guide on investment requirements, profitability figures, working models and processes of application to facilitate a well-informed decision when it comes to collaborating with this fast-growing brand, in an Indian market with a changing profile of regular and premium healthy drinks.
About Chhaswala: Brand Overview
Brand History
The story of Chhaswala started as a dairy business based on conventional methods when Savitaben Patel began it. It is a strategic transformation of the brand reviewed in and around 2015 by her son, Jatin Patel, who, having positioned this brand as the modern, body-healthy beverage chain. The essence of the philosophy has been to offer healthy soft drinks without carbonated alternatives to sugary products, which are offered by players like Coke and Pepsi.
The brand has strategically spread out from its Gujarat origin to Maharashtra and Madhya Pradesh, and also has big national ambitions. This growth plan shows that Chhaswala has been able to make the traditional dairy beverages standard and preserve their original flavour and food quality.
Product Range | Chhaswala Menu Highlights
Chhaswala provides a wide range of dairy-based beverages and desserts but all of them target the same concept, with a comprehensive focus on health, refreshment, and local authenticity:
- Chaas (Buttermilk): Plain chaas, masala chaas and flavoured one like mint and ginger.
- Lassi: Sweet Lassi, salted Lassi and fruit-flavoured versions such as mango lassi and rose lassi.
- Curd/Dahi: Simple curd, simple set curd.
- Rabdi: Amish rabdi and fine dry fruits rabdi.
- Ice Creams/Frozen Desserts: Selection of traditional kulfi as well flavored ice cream.
- Shrikhand and desserts: The saffron shrikhand and the local specialities.
- Snacks and Accompaniments: Light namkeens and complements at the few outlets.
Market Positioning vs Competitors
Chhaswala also enjoys a niche position within the Indian dairy beverage sector, playing between the taste of the past and the retail of the present. Standardised quality, hygienic presentation, and branded experience are aspects that the brand differentiates, and which are more appreciated by urban consumers.
In comparison with Amul parlors, Chhaswala is more narrowed in its beverages and desserts as opposed to broad selections of dairy portfolios. It has better brand strategies, consistency, and ambiance of an outlet in comparison with its traditional local lassi and chaas shops. The moderate capital is sufficient to access the demand against some of the existing dairy chains besides offering a greater level of scalability than unbranded local businesses.
Through this brand positioning, Chhaswala could compete thoroughly in busy places of interest such as malls, shopping complexes and commercial places where brand presentation and perceived elements such as quality has a high value.
Why It’s Popular in Tier-1 and Tier-2 Cities
Tier-1 Cities: Metropolitan consumers are also demanding more and more health-conscious offers as they are looking for low-sugar and low-calorie beverages, as an alternative to the existing soft drinks. The brand name, hygienic standards in preparing the product, and flavor, all offered by Chhaswala, sink deep into this group. Chain format ensures uniformity and reliability, which is challenging to deny to quality-conscious urban consumers.
Tier-2 Cities: Smaller cities provide good affinity of the traditional dairy beverages with limited competition of organised chains in the same niche. Chhaswala is able to enjoy regional taste, cheap operation cost and first retaliation in most markets. In these emerging markets, there is demand across the age brackets that is generated by the brand that will offer customers authentic recipes but in a modernised way of presentation.
Chhaswala Franchise Models
FOFO (Franchise Operated, Franchise owned)
Under this model, franchisees own and direct their stores and therefore do this business model with total control on the day-to-day running of the store. This alternative demands less capital outlay than the FICO model and also has direct participation. It suits businessmen who require unit operation but manage the business directly. The franchisee does the staffing, stock management, local promotion and also takes care of customer service without wearing a brand out-of-brand routine.
FICO (Franchise Invested, Company Operated / Master / Area Franchise).
Franchisees under FICO do the capital investment with Chhaswala operating or operating under appointed teams. It is an expensive model that requires less operational impact on the investor. It is targeted at multi-unit developers or those who are running the area franchise and need to go extensive fast without day-to-day operational oversight. There are profit-sharing arrangements and a management fee structure which are different to those of FOFO.
Chhaswala Franchise Cost in India (2025)
Potential franchisees must understand the full financial requirements. The Chhaswala franchise cost consists of various elements, whose distribution depends on the selected choice of the model and location parameters.
Franchise Fee
The first franchise fee grants you the rights to an area and the licence of your brand. In the case of the FOFO model, it is usually between ₹2.5 to 5 lakh in various areas and market potentials. According to some sources, it can be as high as ₹10-15 lakh to book these premium territories or larger FICO formats. It is a single payment where you will have access to intellectual property, the systems and threshold training of the brand.
Setup & Interiors
The investment in infrastructure and internal installation is a considerable amount of the total investment. In the case of usual FOFO outlets (200-300 sq ft), the setup expenses would cost around ₹11-13 lakh. This involves civil work, brand, interior, furniture, lighting, signage, as well as outlet fit-out as per the design measures of Chhaswala.
Actually there are some reports which indicate low rates of ₹5-8 lakh on basic infrastructure and advanced systems that include vast cold storing and specialized machinery may cost up to ₹15-20 lakh. The customization requirements and the location rental conditions and the existing infrastructure vary with the location.
Equipment
They are also necessary such as refrigeration units, deep freeze and display counters, cold rooms, POD systems as well as the beverage preparation equipment. The cost of these normally ranges between ₹1-5 lakh based on the size of the outlet and the level of menus. This is a very essential area of investment since the quality equipment guarantees consistency of the product and efficiency in its operations.
Inventory
The first inventory will consist of raw materials (milk, fruits, flavorings, dry fruits), packaging materials, branded cups, straws and serving accessories. Inventory costs about ₹3-5 lakh to procure sufficient quantities in the beginning stages of the business as the launch occurs and early business is taken off. Financial planning should also include working capital of replenishing inventory on a continuing basis.
Marketing / Launch
Initial advertising, local launch activities, signage, and promotional materials invariably come at a cost of ₹50, 000 to 1 lakh though this can be absorbed in setting up costs depending on the package. Chhaswala offers marketing services in the form of centralized marketing such as internet promotion through online campaigns, print media, radio promotion, and BTLs to generate awareness and traffic.
Total Investment Needed
In the case of the FOFO (Franchise Owned, Franchise Operated) type, the entire cost of the Chhaswala franchise involves the following:
- Franchise Fee: ₹2.5 lakh
- Setup & Interiors: ₹11-13 lakh
- Equipment, And Starting Inventory: 3-5 Lakh.
- Working Capital / Miscellaneous: 3-5 lakh of ₹.
- Marketing / Launch: ₹0.5-1 lakh
Total Investment (FOFO): ₹15-16 lakh
In the case of the FICO / Master Franchise model, the total investment would be between ₹70-90 lakh. This increased amount includes increased space demands, increased infrastructure, larger franchise fee (₹10-15 lakh ), and clockwork multi-outlet or area development possibilities.
These numbers are the indicative ranges depending on the information published publicly and might change depending on the city level, the rent prices, the situation in the local market and customization needed.
Franchise Requirements: Space, Location & Setup
Minimum Space Required
Chhaswala outlets are efficient in small set-ups thus fitting different retailing settings. In the case of the normal FOFO model, 200-300 square feet is the minimum area required. Within this foot print preparation spaces, service counters, display spaces, small seats (where they exist), and storage are catered to.
In FICO or master franchise structure, space needs will be 200-500+/square feet, which will permit more operations, widened menus or cover multiple stations. The small size can be deployed in high-rental regions in places where the large spaces would have been economically restrictive.
Ideal Location Types
Site choice is very influential in the performance and profitability of outlets. Chhaswala by nature is a good business when visibility and footfall rates are high:
Prime Locations:
- Shopping centers and shopping pitches.
- Cinema areas and fun areas.
- High traffic shopping streets.
- Close to office villages and company estates.
- Educational organizations and college campuses.
- High pedestrian residential areas.
Strategic Considerations:
- Accessibility on major roads or people walkways.
- The distance to complementary food and beverage establishments.
- Customer convenience parking spots.
- Demographical Congruence with healthy consumer segments.
Semi-urban areas and commercial areas around the Tier-2 and Tier-3 in the cities are also opportunities where the intensity of traditional demand of beverage is high with limited more organised competition.
Profit Margin & ROI Expectations
Average Monthly Revenue & Net Profit Margins
The financial performance is differentiated according to place of operation, efficiency as well as the prevailing market conditions. A normal FOFO outlet is likely to yield 500 heatstroke monthly gross sales as per industry reports. Upon taking out costs of goods sold, operation expenses, rent, utilities and the staffing, the net profit margins fall within the ranges of 10-12 as well.
This is 50000-60000 as a monthly net profit of well performing outlets. According to some sources the margin is as large as 27 gross and net margins are fixed as well as variable operating costs eat up the difference between the gross and net margins.
Revenue and Profit Estimates (FOFO Unit):
- Monthly Gross Sales: ~₹5,00,000
- Operating Costs (COGS, Rent, Staff, Utilities): ~88-90% of sales
- Net Profit Margin: ~10-12%
- Approximate Monthly Net Profit: ₹50,000-60,000
These are only rough benchmarks, the actual performance is reliant on certain aspects of operation.
Payback Period Estimates
The Chhaswala franchise cost recovery period is a critical aspect of the investment choices of the franchise by Chhaswala. Payback ranges between 12-24 months be mostly estimated in the FOFO model. In locations with good strategic placement, areas that are busy with decent operational management, payback can be received within 12-18 months.
In the case of FICO models, there are additional factors that complicate ROI calculations and these include profit-sharing arrangements, greater cost of starting a business and other operational structures. Payback will similarly be further improved but scale benefits will add to overall returns with time.
Factors Affecting Profit
There are several variables that strongly influence outlet profitability:
- Location & Footflow: Excellent locations with regular traffic by the customers attract increased sales, which warrant high rents. The performance is directly related to visibility and accessibility.
- The Terms of Rent and Lease: Rental expenses are a significant type of expense in the form of a big fixed expense, especially in RFs. Bargaining for optimistic lease deals has a great influence on the bottom-line profitability.
- Operational Efficiency: Minimisation of waste, maximisation of staff efficiency, regulating energy expenditure toward refrigeration, and efficient inventory control is are direct ways of generating higher margins.
- Menu Mix/Pricing: speciality desserts, dry fruit versions and premium products as they represent high margins and enhance average transaction value. The combination of competitiveness and profitability is achieved through strategic pricing.
- Brand Marketing and Customer Relationship: Recurring customers, good local advertisements and overall brand recognition positively influence steady sales. The cost of customer retention is lower than that of customer acquisition.
- Competition and Pricing Pressure: Rebates by local unbranded shops or other owning beverage chains may compel any change in the price. The quality and experience can be used in differentiation to sustain premium positioning.
How to Apply for a Chhaswala Franchise | Step-by-Step Application Process
- Visit Chhaswala’s official website.
- Complete the online franchise application form with personal and business details.
- Submit ID proof, address proof, and financial documents.
- Chhaswala reviews your application and eligibility.
- Attend a call or meeting to discuss investment, location, and terms.
- Location gets approved by Chhaswala.
- Complete legal formalities and sign the franchise agreement.
- Receive training and support for setup and operations.
- Open your Chhaswala outlet and start operations.
Documents Required
Although the notion of a documentation requirement is not very exhaustive that as shown at the official site of Chhaswala, a typical franchise application duties usually include:
Personal Documents:
- Identity proof (Aadhaar Card / PAN Card)
- Address proof
- Passport-size photographs
Business Documents:
- Business registration documents or entity proof
- Bank statements and financial credentials
- GST registration details
Location Documents:
- Suggested address of the location and the details.
- Documents of property lease agreement or ownership.
- Site layouts or photographs.
Regulatory Licenses:
- FSSAI (Food safety and standards authority of India) license.
- City health and trade licences.
- Additional territorial specific regulatory approvals.
With such documents at hand, the process of reviewing and approving an application becomes fast.
Official Contact Number, Email & Website
The potential franchise partners could reach Chhaswala by means of the following routes:
Phone: +91 9825807060
Email: info@chhaswala.co
Website / Franchise Page: https://www.chhaswala.co/franchise/
Corporate Address: Patel Dairy Products Pvt Ltd, A-1, Swagat Industrial Estate-2 Opp. Water Tank, Nr. Kuha Bhavda Patiya Kuha, Ta. Daskroi Ahmedabad-382433, Gujarat
Direct communication serves you the correct and up-to-date information to create a franchise in your target access location.
What to Expect After Applying
Onboarding of franchises takes a fluid route:
- First Evaluation: Chhaswala assesses your proposed location, market and financial worthiness as well as that of applicants. This screening verifies that there must be mutual compatibility and a probability of success.
- Franchise Agreement: You will go through the franchise agreement and sign it once you are approved, and it contains terms, time limits, territorial allowances, liability and allowances.
- Franchise Fee Payment: This option involves payment of the franchise fee, which guarantees you your location and also runs the process to be customised.
- Training and Consultation You are going to be provided with thorough operation training, product preparation training, quality standards training, customer service training, and brand guideline training. This usually takes place at corporate centres or branches that are already in existence.
- Site Development: Chhaswala offers design aspects of interiors, equipment sourcing, supply chain installation, and installation of POS/ERP systems. You will be carrying out the buildout based on brand requirements.
- Launch Support: The company helps in initial stocking of inventory, launch marketing and event coordination of the opening in order to have the best first impression.
- Continuous Support: Once launched, you receive all-time support such as support in supply logistics, auditing of operations and quality control, marketing campaigns, and advisory services of business consultants.
Chhaswala Franchise vs Amul Franchise: Cost & Opportunity Comparison
The two brands are in the dairy market but with different franchise propositions that would be compared:
Investment Comparison:
The standard FOFO model costs 15-16 lakh in the Chhaswala franchise. According to several industry estimates, Amul parlour franchises can cost as much as 5-7 lakh, though this greatly differs depending on the region and format used. The difference between the entry point of Amul and other airlines highlights the difference like its business and the existing system of supply.
Brand Strength:
Amul has a decades-old brand equity as the top dairy cooperative in India, which is nationally recognised. Chhaswala is a small, regionally expanding and niche-targeted brand.
Menu & Focus:
Chhaswala will focus on beverages and desserts, and has an enormous variant selection (99 + versions), and they develop specialisation and differentiation. Amul Dairies has more dairy portfolios such as milk, ice cream and general dairy products serving the category diversification without much specialisation in beverages.
Margin Potential:
At the outlets Chhaswala reportedly achieves 10-12% net margins (it may be even higher in the best locations), but focused progress of the business enables management of the margins. Amul has product mix variations in that there are controlled milk prices and the more widespread but potentially less profitable dairy products.
Market Positioning:
Chhaswala focuses on the trendy traditional consumers who want to use modern packaging on conventional beverages. At Amul, the dairy products cater to more general markets, where the products have been well-established and still have little market differentiation in the beverage niche.
Risk Profile:
Amul has a loyal brand that gives it demand stability and recognition benefits. Chhaswala has to establish in the area, but there is more differentiation and margins could be stronger in areas that the company correctly targets.
Selection of these franchises would be based on the ability to invest, geographical location, personal functioning style, and feeling of niche beverage market development or known brand store retailing.
Conclusion: Is Chhaswala the Right Franchise for You?
Reviewing the Chhaswala franchise cost and opportunity entails weighing investment demands over potential in the market over personal capabilities. The cost of entry is also affordable at 15-16 lakh an FOFO outlet to enter the industry of food and beverage entrepreneurship. The brand exploits some of the strong trends such as health awareness, appreciation of traditional drinks, and systematic retail growth.
Chhaswala has a profitable enough operating discipline, location selection and customer-oriented functionality as it serves to deliver fair profitability and brand association benefits. Nevertheless, it does not always come easy, bad site decisions, high rental rates, and inefficiency of operations or competition on the local level may destroy returns.
Before committing, it’s best to thoroughly check through the assumptions, research the existing franchisees and understand your local market dynamics. Chhaswala is a worthy franchise opportunity to any entrepreneur whose interest lies in the dairy beverage industry and has the capital and management skills to make them act upon it.
Similar Food Franchise Options:
FAQs
1. What is the average Chhaswala franchise cost by 2025?
A regular FOFO model would need an approximate total investment of 15-16 lakh, perhaps comprising franchise fee, layout, equipment, inventory and working capital. Forms in FICO/master forms demand 70-90 lakh.
2. Does Chhaswala impose any royalty or commission fee?
The reports are mixed with some reporting royalty may be imposed (approximately 2% on sales that surpass 1 crore yearly) and others have indicated that the FOFO model functions without any extra on ROY payments. Ensure details are confirmed in the talks of a deal.
3. Will it take me long to regain my investment in the Chhaswala franchise?
The average payback takes between 12-24 months. Outlets with good locations and operations might recover faster (12-18 months), whilst difficult locations may not recover until after an extension of 24 months.
4. How many spaces do you need to launch a Chhaswala outlet?
Retail outlets need to have 200-300 feet or more. Bigger FICO or master formats can require 200-500 square feet, based on the areas of the operations and the market positioning.
5. What is the process of applying to a franchise, soChhaswala?
The phone number of Chhaswala is +91 9825807060, the email address is info, the franchise page of Chhaswala is located at //chhaswala.co/franchise/ where the application process will be started and the up-to-date requirements will be provided.
