2026-08-03
Zero Royalty vs Royalty Tea Franchises
A 5–10% royalty on monthly sales can erase a thin kiosk margin. Here is how a one-time-fee model compares.
Many tea cafés charge 5–10% of sales every month plus marketing fees. On ₹2 lakh monthly revenue that is ₹10,000–20,000 leaving the counter before rent.
What zero royalty means at Maa Ki Chai
You pay a one-time franchise fee (₹1.7 lakh Diwali offer, regular ₹2 lakh). There is no monthly royalty. You still pay rent, staff, milk, tea and gas — those are operating costs, not brand tax.
Zero royalty is not “free money”. You must still pick a busy site. It does mean a 40–50% product margin is not clipped by a percentage fee.
Are there hidden brand fees?
Ongoing costs are rent, labour and raw material. The franchise fee is one-time. Confirm the signed agreement.
Why do big cafés charge royalty?
They fund national ads and larger stores. A 75+ sq ft kiosk does not need that stack.