Jumbo King vadapav franchise is a popular chain of fast food restaurants in India known for its vada pav, a popular street food dish. The company offers franchise opportunities for individuals interested in starting their own Jumbo King restaurant. The franchise cost and investment details have not been disclosed by the company, but it is likely to vary based on the location and size of the restaurant.
Potential franchisees are required to have a passion for the food industry and strong business acumen in order to be successful in this venture. In addition to providing training and support, Jumbo King also offers a comprehensive marketing and branding package to its franchisees to help them establish their business in the local market. Overall, starting a Jumbo King franchise can be a lucrative and rewarding business opportunity for those looking to enter the fast food industry.
History of Jumbo King Franchise
Jumbo King is a chain of fast-food restaurants in India that was founded in the year 2001. It is known for its vada pav, a popular snack in Maharashtra made with a spicy potato patty and served in a bun. The company was started by Mr. Dheeraj Gupta, who was inspired by the success of McDonald’s and wanted to create a similar concept for the Indian market.
JumboKing franchise has grown to become one of the most popular vada pav chains in India, with over 200 outlets across the country. The company has also diversified into other food items such as sandwiches, chaats, and Frankies. Jumbo King has a strong presence in the western states of India, particularly Maharashtra and Gujarat.
The company offers franchise opportunities for those interested in starting their own Jumbo King outlet. The Jumbo King franchise model is based on a revenue-sharing model, where the franchisee pays a percentage of their sales to the company. JumboKing provides support to its franchisees in terms of training, marketing, and operations. The company also offers ongoing support to ensure that its franchisees are successful in their business ventures.
Jumbo King Franchise Cost in India
The initial investment for a Jumbo King franchise in India is between INR 25,00,000 and INR 30,00,000. The size of the store will affect the cost, with a minimum area requirement of 250 square feet. The franchise fee includes a royalty charge of 10% on sales. The cost breakdown is provided below.
| Expenses | Amount (in rupees) |
|---|---|
| Franchise Fee – 3 lakhs (+18% GST) | 3,54,000 |
| Civil work and Interior | 14,00,000 |
| Furniture & Marketing | 8,00,000 |
| Royalty Deposit | 50,000 |
| Required Licenses | 50,000 |
| Other Expenses | 50,000 |
| Total Investment Cost | 27,04,000 |
Terms & Conditions by the Jumbo King Franchise
- The Franchise Agreement will last for 5 years and can be renewed every 5 years for an additional fee of 10,000 Rupees.
- The franchisor will provide all necessary materials, including raw ingredients, sauces, chutneys, and frozen vegetables, to prepare the beverages offered by Jumboking.
- Royalty payments will be due on a weekly basis on Thursdays, but the franchisor reserves the right to change the payment date in the future.
- If royalty payments are not made on time, the franchisor may charge interest at a rate of 18% per year.
- Initial training will be provided by the franchisor, and the franchisee or their representative must successfully complete the training program before opening the outlet. If the program is not successfully completed on the first attempt, a second attempt will be allowed.
- Full support will be provided by the company to the franchisee.
Jumbo King Franchise Profit Margin in India
In order to determine the profit margin for a Jumbo King franchise, we can use an example to calculate the expenses and compare them to the total gross sales. By subtracting the expenses from the gross sales, we can determine the profit margin for the franchise. We will take three sales scenarios to get a more clear idea of the profit margin of the JumboKing vada pav franchise.
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Monthly Gross Sales | 8,00,000 | 6,00,000 | 4,00,000 |
| Raw Material 40% | -3,20,000 | -2,40,000 | -1,60,000 |
| Royalty 11.8% | -94,400 | -71,000 | -47,000 |
| Shop Rent (Considering Mumbai City) | -1,40,000 | -1,20,000 | -1,00,000 |
| Employee Salary | -60,000 | -50,000 | -45,000 |
| Electricity & Water Bills | -30,000 | -25,000 | -20,000 |
| Online Delivery Portal Commission | -40,000 | -30,000 | -20,000 |
| Other Expenses | -50,000 | -40,000 | -20,000 |
| Monthly Net Profit | 65,600 (8.2% of sales) | 24,000 (4% of sales) | -12,000 (-6.3% of sales) |
The above calculation shows that the average net profit of the Jumbo King Vadapav franchise considering(8.2%, 4%, -6,3%) all 3 scenarios is 2% of total monthly sales which is very very low and is not recommended for any new or non-researched location.
Want to open low-cost vada pav franchise? read here: Chhotu Vadapav Franchise.
How to start a Jumbo King Franchise in India?
Below are the steps to follow to start your own jumbo king vada pav outlet in India.
- Research and learn about the Jumbo King brand and its offerings.
- Contact the Jumbo King franchise team and inquire about available franchise opportunities.
- Review and carefully consider the franchise agreement and any associated costs.
- Prepare a detailed business plan, including a budget and marketing strategy.
- Submit a franchise application to the Jumbo King team, including supporting documentation.
- Participate in the required training program and complete any necessary preparations for opening your franchise location.
- Obtain any necessary licenses and permits for your business.
- Secure a suitable location for your Jumbo King franchise and begin building or renovating the space.
- Order necessary equipment and supplies, and hire and train staff.
- Launch your Jumbo King franchise and begin serving customers.
JumboKing Franchise website: https://www.jumboking.co.in/apply-for-franchise
FAQs
How much does it cost to open a Jumbo King Vadapav franchise?
The cost to open a Jumbo King Vadapav franchise ranges from INR 25,00,000 to INR 30,00,000. The cost may vary depending on the size of the store.
What is the minimum area required for a Jumbo King Vadapav franchise?
The minimum area required for a Jumbo King Vadapav franchise is 250 square feet.
How long is the franchise agreement for Jumbo King Vadapav?
The franchise agreement for Jumbo King Vadapav is for a period of 5 years. It can be renewed after every 5 years for a fee of INR 10,000, which is valid for 20 years.
