FAQ - TEA TIME

1. What is the size of the shop required for starting a Tea Time Unit Franchise?

The minimum size of the shop should be 100 Square Feet However; the ideal space would be of 150
Square Feet or more.

2. What is the Franchise Fee?

The unit franchise fee is Rs. 425,000/- + GST. It includes the brand fee, marketing fee and the cost of
all equipment such as hot snacks case, refrigerator, deep freezer, induction stove, high-pressure gas
stove, fruit mixer, tea utensils, tea powder, branded glasses, name board, menu board etc. and initial
stock. (Please check Annexure - 1 (page 5) for the complete details of the startup kit)

3. Is the franchise fee refundable?

The franchise fee is not refundable. However, the Complete Equipment (Movable & Immovable
items) provided to the franchise by the brand is totally owned by Franchise.

4. What are the other initial expenses apart from the franchise fee of 4.25 lakhs?

The franchisee (investor) is responsible for the interior work, and furniture etc. (The approximate cost
can be anywhere between Rs. 50,000/- to Rs.80,000/-). (Please check Annexure - 4 (page 9) for the
details of the interior work to be done by the franchisee (investor))

Shop security deposit (if it is a rented shop) will also be extra.

5. Are the equipment provided (fridge, freezer, etc.) branded?

Yes. All are branded products (LG, Samsung, Blue Star, Rockwell, Western... etc.) and comes with a
warranty.
6. How long is the franchise agreement? Is it renewable?

The franchise agreement is valid for 5 years. At the end of the 5th year, you can renew the agreement
by paying 10% of the franchise fee.

7. Will the brand provide stock for preparing everything on the menu when the initial stock is
exhausted?

The Brand will supply all the primary ingredients. However, there are some items which the
franchisee has to buy locally.

Sr.
No. ITEM Sr. No. ITEM Sr. No. ITEM
Full cream Milk
1 (Fat Content-6%) 12 Chocolate Ice Cream 21 Brown Sugar
2 Milk Normal 13 Mango Ice Cream 22 Chocolate Syrup (Optional)
3 Sugar 14 Vanilla Ice Cream 23 Packing Cover-Snacks
4 Lemon 15 Strawberry Ice Cream 24 Snacks Plates (Optional)
5 Curd 16 Ice Cream Spoon 25 Parcel Cover (Take Away)
6 Banana 17 Gas Cylinder 26 Waste Bin Cover
7 Watermelon 18 Milkmaid
Syrups/Crush: Rose, Mango,
8 Mint 19 Honey
Green Apple, Strawberry,
9 Sprite Dry Fruits: Pista, Dates, 27 Orange
Blackberry, Cranberry,
10 Ginger 28 Tissue Paper
Sabja, Apricot, Prunes,
11 Oreo Biscuit 20 Kismis 33 Nescafe

Please check Annexure - 2 (page 7) for the list of items supplied by the Brand and the price.

8. What are the snack items supplied by the brand?

The Brand will not supply snacks. The franchisee can keep the local snack items at the shop with the
approval from the brand. The franchisee can either prepare the snacks or get it from good snacks vendors.
The quality of the snacks should not be compromised.

9. Can the franchise add extra drinks other than the snacks to the Menu?

Teatime does not entertain any items other than its menu to be sold from its outlet. However, considering
the regional flavor and demands, a few selected drinks can be added with the written approval from the
brand. No other tea varieties can be added.
10. Will the Brand provide staff?

No. However, the Brand provides training to your selected staff. You need a minimum of 2-3 workers
to run the shop. These workers do not need to have any prior experience in the hotel field. The reason is
that all the drinks at Tea Time are prepared using formulas. 3 days of training is enough to learn Tea
Time preparation methods.

11. Will the training be charged?

Yes, we will send one of our chefs to your shop for training for 3-4 days, which will cost you a training
fee of 10,000/-. You will also have to bear the expenses of travel, food and accommodation of the
trainer.

12. What are the average daily sales at existing stores?

The daily sale at Tea Time outlets ranges between Rs.8,000 to Rs 35,000. However, on average, you can
expect a regular sale of 10,000 or more. The primary factor deciding the daily sale is the location of the
shop.

13. What is the monthly royalty amount payable to the Brand?

Monthly Royalty of Rs2,000/- to be paid by the franchise, No additional hidden charges, No percentage
on sale or No percentage on profit the franchise makes.

14. Does the brand have a centralised billing system?

Yes. However, from the brand side, the POS system is not mandatory for a unit. So it is provided as an
optional choice for the franchise owners. In such a case, an additional amount of Rs.25,000/- will be
added to the franchise fee. With the POS system, the franchise will cost Rs.4,50,000 + GST.

15. For outlets without a POS system, how will the brand calculate the monthly sales?

We have different cups for all the products based on the price range. There's a cup for 10 rupees tea,
another for 49 rupees milkshake etc. So at the end of the day when you count the balance cups at your
shop, you'll get the total sale of the day. Also, since we are making all the drinks using a formula, we'll
be able to calculate how many cups of tea is sold using 1kg tea powder.
16. Misuse of Tea Time Products?

The unit franchisee will procure all raw materials exclusively from the Brand/Brand District
Representative.
In that case, if the Unit Franchisee is found selling the Tea Time product in any other Non-Tea Time
outlet or any Personal Business, the unit franchisee shall be liable to face legal Consequences and to pay
a fine to the brand. Without prejudice to any other right, recourse and/or remedy that Brand may have
under law and/or equity and/or under the agreement will collect an amount equivalent to INR10,00,000/-
(INR.Ten Lakh only) as liquidated damages and not as a penalty.

17. Will you open a new franchise near my shop? Is there a specified distance between Tea Time
shops?

There is no specified distance. We will not open a shop at a location because of which your business
will be affected.
For, e.g., 2 shops located on both sides of the highway have different customers. However, if we get an
opportunity to give an outlet near an existing one, the current franchisee will be given that opportunity
first.

18. Can the franchisee use its own glasses for serving teas and other items?

No. It will be a Long Term loss to the Franchise, It is strictly not allowed. The franchisee has to sell all
the items in Tea Time Brand glasses only.

19. How and when can the franchisee report the sales to the brand?

The franchisee has to send daily, weekly and monthly sales report to the brand via Whatsapp.

20. Can the Franchise Relocate the Outlet?

Yes. Franchise can relocate the Outlet subject to a written approval from the Brand. The new Location
should be approved by the management and it should not disturb the Existing outlet in the Location. It
is strictly not allowed to relocate the Outlet without a prior written approval from the Brand.
 Annexure – 1

ITEMS INCLUDED IN START UP KIT

SL.NO MATERIALS QTY UNIT
ELECTRONIC APPLIANCES
1 DEEP FREEZER (160-200 Ltrs) 1 NOS
2 BRANDED INDUCTION STOVE 1 NOS
3 REFRIGERATOR (Single Door) 1 NOS
4 FRUIT MIXER 1 NOS
5 SNACKS DISPLAY HOT CASE 1 NOS
STEEL ITEMS
6 STAINLESS STEEL VESSELS 2 NOS
7 STAINLESS STEEL MUG 2 NOS
8 STAINLESS STEEL LADER 1 NOS
9 STAINLESS STEEL LADDLE 1 NOS
10 STAINLESS STEEL FILTER ( NO 2,3,4 ) 3 NOS
11 HIGH PRESSURE GAS STOVE 1 NOS
12 AIRTIGHT FLASKS (3.5ltr) 2 NOS
13 SCISSORS 1 NOS
14 TEA PAN 3 NOS
15 ICE CREAM SCOOPER 1 NOS
16 LIME SQUEEZER 1 NOS
17 TEA FILTER 1 NOS
18 LIGHTER 1 NOS
19 GINGER STONE 1 NOS
20 KNIFE 2 NOS
21 Non Stick tea pan INDUCTION BASE 1 NOS
PLASTIC MATERIALS
22 PLASTIC STORAGE CONTAINERS ( Water bottle -6 ,Plastic Container 500g 14 NOS
-6 , Big size container -2 )
23 CHOPPING BOARD 1 NOS
24 MEASURING JAR 2000ML 1 NOS
25 MEASURING JAR 1000ML 1 NOS
26 MEASURING JAR 500ML 1 NOS
27 MEASURING JAR 250ML 1 NOS
28 MEASURING JAR 125ML 1 NOS
29 SPOONS 5 PKT
30 STRAW 5 PKT
31 TEA PARCEL COVER 1 PKT
32 SNACKS COVER 1 PKT
33 ICE CREAM SPOONS 5 PKT
34 WASTE BIN COVER 1 NOS
35 DUST BIN WITH LID 3 NOS
 SYRUPS AND INGREDIENTS
36 ROSE SYRUP 2 BOTTLE
37 STRAWBERRY CRUSH 1 BOTTLE
38 ORANGE SYRUP 1 BOTTLE
39 GREEN APPLE SYRUP 1 BOTTLE
40 MANGO SYRUP 1 BOTTLE
41 MILK MAID 1 PKT
42 COFFEE 12 Dozens 144 PKT
43 HONEY 400gm 1 BOTTLE
44 OREO BISCUIT 4 PKT
45 SABJA 250GM 1 PKT
46 SABJA 250GM 1 PKT
47 DATES 500gm 1 PKT
48 PISTA 250GM 1 PKT
49 PRUNES 1 PKT
50 CRANBERRY 1 PKT
51 APRICOT 1 PKT
REVENUE MATERIALS
52 TEA CUP 5000 NOS
53 49 GLASS 200 NOS
54 99 GLASS 200 NOS
55 TEA POWDER 5 KG
56 KASHMIR CHAI POWDER 1KG 1 PKT
58 BADAM 500 GM
59 KULAD CHAI MASALA 200 GM
60 TEA MASALA 200 GM
61 GREEN TEA 2 PKT
62 TISSUES 10 PKT
63 TAKE AWAY FLASK 10 PKT
64 KULAD CHAI CUP 1 BOX
 Annexure - 2

PROCEDURE TO ORDER STOCK

1. Franchise can order the Stock by Whatsapp, Phone Call, Message & Email.(Contact Info will be Provided)
Sample Order Style
Name: RAGHU RAM KUMAR
Contact Number: 9981--- ---
Address: Tea Time, Shop No 23, SBS Parisar, Vijay Nagar, Indore, Madhya Pradesh. 452010.
Available Transport: VRL, RTC, Orange Cargo.
Requirement: Tea Powder 15KG
Tea Masala: 2 packs
Khulad Masala: 2 packs
Badam Powder: 2 packs
Tea Glass: White-2000, Red-1500, Brown-1000

2. Proforma Invoice will be generated & sent to the Franchise, The Franchise should have to make the
Payment to the given Bank Account Details in the Proforma Invoice & Send us the Acknowledgment of
payment receipt.
3. Soon after the Payment is received the Store will Dispatch the material & provide the Tracking Details.
4. The Franchise should track the Shipment & Collect it from the Transporter Locally.
 Annexure - 3

The list of items to be sourced by the Franchisee from local market

Sr.
No. ITEM Sr. No. ITEM Sr. No. ITEM
Full cream Milk
1 (Fat Content-6%) 12 Chocolate Ice Cream 21 Brown Sugar
2 Milk Normal 13 Mango Ice Cream 22 Chocolate Syrup
(Optional)
3 Sugar 14 Vanilla Ice Cream 23 Packing Cover-Snacks
4 Lemon 15 Strawberry Ice Cream 24 Snacks Plates
(Optional)
5 Curd 16 Ice Cream Spoon 25 Parcel Cover (Take
Away)
6 Banana 17 Gas Cylinder 26 Waste Bin Cover
7 Watermelon 18 Milkmaid
Syrups/Crush: Rose,
8 Mint 19 Honey
Mango, Green Apple,
9 Sprite Dry Fruits: Pista, Dates, 27 Strawberry, Orange
Blackberry, Cranberry,
10 Ginger 28 Tissue Paper
Sabja, Apricot, Prunes,
11 Oreo Biscuit 20 Kismis 33 Nescafe
 Annexure - 4

Details of Interior/Carpentry work to be done by the franchisee (investor)

Inside Kitchen
● Kitchen Partition
● Kitchen Platform for Stove, juicer, tea pots, water can etc.
● Shelves to store the preparation material (Tea Powder, Tea Masalas, Syrups, Glasses… Etc.)
● Overhead cabinets for Stock arrangement and Inventory Management
● Water Inlet and Outlet (Mostly Provided by the Shop Owner)
● Washing Sink in the Kitchen
● Commercial Gas Connection
● Electric sockets for Refrigerator, Deep Freezer, Mixer Etc.
● Extra Lights (if Needed)
● Exhaust fan

Outside Kitchen
● Tea Selling Counter/Cash Counter
● Electric Power Socket for snacks hot case
● Chairs& other furniture (Not Recommended)
● Extra Lighting (If Needed)
● Ceiling Fan

Any other work (Painting, Ceiling Etc.) will have to be done by the franchisee (investor).

After finishing all the above mentioned works, the franchisor (Tea Time) will supply the startup
kit and finish the work in 10-15 working days.

The average cost of interior work can be anywhere between Rs50,000/- to Rs80,000/-. (The average cost
can be lower or higher depends on the size of the shop, cost of materials, cost to workers etc.)