How Much Profit Can Be Earned From a Bikanervala Franchise Store?

Category: Food and Beverage Franchises

India has a long and rich tradition of sweets “mithais” and snacks such as bhujiyas. No festival or ceremony is completed without distributing sweets and snacks to relatives and friends. These simple edible products will always have a separate place in our hearts. Interestingly, Dungar Singh who was the Maharaja of the princely state of Bikaner back in 1872 was the one who first had “namkeen” and “bhujiya” made for his guests. This clearly proves that the modest bhujia has long been a well-liked food option in India. Fast-forward to eight decades, there established lots of snack food companies and among them was Bikanervala. Providing quality food materials without any compromise on hygiene, Bikanervala grew rapidly. Established in 1952 and within four decades they ventured into the franchising business. Today, according to Wikipedia, Bikanervala has made its presence in 150 different locations both nationally and internationally. In this context, we will provide you with brief details regarding the franchise business option offered by Bikanervala.

Bikanervala Franchise Overview

Bikanervala offers three different types of franchises to interested people. The different types of franchises are the following:-

Kiosk - Bikanervala offers a kiosk model for people who have less capital and is willing to open smaller outlets. These kinds of franchise models can mostly be found and opened in high-traffic areas like malls, airports, or busy streets. They typically offer a limited menu which primarily focuses on popular items.

Restaurant - This is the most famous franchise model of the brand. It includes setting up a full-fledged dining that will serve a wide range of edible products.
Express outlet - It is a mix between a kiosk and restaurant formats. This kind of franchise is designed to provide quick service and convenience to customers who are looking for a fast dining experience.

Benefits of Opening a Bikanervala Franchise

Here are some of the major benefits of opening a franchise from Bikanervala:-

Established brand name - Bikanervala needs no introduction in the sweets and snacks market. It has a very strong presence in the Indian food industry.
Proven business model - Over the years, Bikanervala has constantly improved its business process so that it becomes smoother and more convenient.
Training and Support - Proper and high-class training and support are offered by the corporate team. It includes assistance with site selection, software usage, store setup, marketing strategies, and a few more.
Wide menu - Bikanervala is known for offering a wide range of menu options to customers. The traditional Indian sweets, dishes, snacks, and beverages are the most sold ones. It all depends on the type of franchise you take.
Marketing and advertising - Bikanervala uses rigorous marketing campaigns for more customer attraction.

Bikanervala Franchise Cost Breakdown (Estimated Range)

Franchise Cost	Rs 20-50 lakhs
Total Investment	Rs 2-5 crores

The cost of opening a Bikanervala franchise can vary greatly on the type and place of franchise you are opening. The value of land or space changes from state to state in India. You need to know which business or franchise model you are willing to get and where you are willing to open. One must know that the costs provided in this article are just estimates and actual expenses or costs may differ. Normally, the total investment required to start a Bikanervala franchise is between Rs 2-5 crore. Yes, we are talking about the larger franchise model offered by the company. Here are the breakdown of the cost components of opening a Bikanervala franchise:-

Franchise Fee - Franchise fee is always charged by this company so that one can acquire the rights to operate a Bikanervala franchise. Now, this franchise fee typically ranges from Rs 20 lakhs to Rs 50 lakhs. This fee given to the company grants access to brand name, business model, reputation, and support.
Initial Setup Cost - This includes all the equipment, furniture, interior design, and other necessary infrastructure required for setting up the franchise. Now, the initial setup cost of opening a Bikanervala franchise can fall within Rs 1-3 crore.
Inventory - Franchisees are required to invest quite a large amount in stocking up of inventory such as raw materials, ingredients, packaging materials, finished goods, and many more. The cost of inventory can range between Rs 30-70 lakhs.
Marketing and Training fees - Franchisees are usually required to contribute towards marketing campaigns which are initiated by the franchisor to promote brand awareness and drive traffic. The fees for this usually range between Rs 10-20 lakhs.
Royalty fees - Many huge and reputable companies like Bikanervala charge some royalty fees from franchises per month. Bikanervala may apply the royalty fee ranging between 4-8% of monthly gross sales.

Additional Investment Considerations

Here are some additional considerations that one must make before they are applying for a Bikanervala franchise :- Location impact on costs- The location of a retail store or franchise significantly impacts the overall costs. A prime location where there are lots of shops and people can lead to higher rent prices. Stores located in a less popular area might have lower rents or taxes but, they could struggle with attracting customers. It is essential for franchise-seekers to consider the balance between these two. Store size and investment- The size of the franchise plays a crucial role in determining the investment required for setting up. Larger outlets will surely demand more initial capital as they need more space, machines, display products, fixtures, and many more. Operating costs such as utilities, maintenance, and staffing for the store will be higher. One must assess the budget and business plan carefully to determine the store size and then make an investment. Franchise model- There are three franchise models from Bikanervala. It ranges from kiosks to full-fledged restaurants. Each of them has different investments to be made. Kiosk models tend to have lower investments than restaurant models. Investors should thoroughly review the franchise disclosure documents provided by the franchisor for detailed information and insights.

Financing Your Bikanervala Franchise

When you are considering financing options for your Bikanervala franchise , there are several avenues that you can explore to secure those funds. Here are some of the common options:-

Personal Investment - One of the most common and straightforward ways to finance your franchise is through personal investment. This means you will be using your own savings or assets to fund your business. While this option gives you full control over your business but, it comes with a heavy risk.
Bank loans - The best option available for those who do not have capital is a bank loan. Banks offer various types of loans for franchise businesses such as SBA loans or conventional business loans.
Investors - One may also consider seeking investors to finance your Bikanervala franchise. You need to pitch your business idea to potential business partners to attract them to your business.
Crowdfunding - Many platforms are available like Kickstarter or Indiegogo to raise funds for your franchise. You can easily present your business ideas to a larger audience.

We would highly recommend you consult with a professional financial advisor before making any decisions. A financial advisor can provide you with all the guidance that you will require to start such a big business.

Documents and Licenses Required for Bikanervala Restaurant Store Franchise

Here are the documents and licenses required to start a Bikanervala franchise in India:-

Aadhar card, PAN Card
Bank Passbook
Bank details
Land papers
Agreement papers
GST Certificate and Number
Shop Agreement
Lease Agreement
Local Fire Department permission

How much profit can be earned from a Bikanervala Franchise Store?

Bikanervala Franchise is one of the famous Indian snack brands generates revenue through various channels. Some of them are direct sales from its outlets, franchise fees from franchises, or royalties. Here are some factors which are affecting profitability:-

Management- Effective management is a must for the profitability of a business. There must be strong leadership, strategic decision-making, and efficient cost management.
Marketing efforts- They are very important for attracting customers increasing brand visibility and driving sales.
Competition- This can hugely affect the profitability of the franchise. Bikanervala’s ability to differentiate itself from its competitors can help it earn more.
Economic factors - Economic conditions such as inflation rates, consumer spending patterns, tastes, and preferences can impact profit.

The timeframe of Return on Investment for the Bikanervala franchise ranges between 4-5 years. However, this timeframe is subject to various factors such as market conditions, competition, government policies, and many more.

Conclusion

To open a Bikanervala franchise proper investment must be made because it’s a big and well-reputed company. Make sure to get financial help from advisors if you do not have the capital to open one. If you are stuck and confused with some procedure or process then it’s always better to contact the officials and ask them about your queries. Additionally, make sure you have done your research about the company and its franchise process so that you do not fall into a trap.