A royalty-free franchise model is a business partnership where the franchisee delivers an initial fee to use the brand and system but keeps 100% of their ongoing revenue. Unlike traditional models, there are no recurring percentage-based royalty payments.
The dream of starting an 'apna business' beats strongly in the heart of India. It's a dream of financial independence, of building a legacy, and of being your own boss. For many, franchising seems like the perfect path—a way to own a business with the safety net of a proven brand and a ready-made playbook.
But what if that safety net came with a hidden catch? A catch that penalises your hard work and taxes your success, year after year?
At Yewale Amruttulya, our journey began not in a boardroom, but with a single tea stall in Pune back in 1983. For over 40 years, we've been part of the fabric of communities, serving chai that feels like home. We've grown from one stall to over 550 outlets across the nation, not just by selling tea, but by building relationships.
When we decided to grow our family through franchising, we looked at the standard industry model and saw a fundamental problem. We saw a system that often puts the franchisor's profits ahead of the franchisee's success.
So, we made a conscious, deliberate choice. A choice to walk a different path.
We chose to build our entire franchise opportunity on a royalty-free model. This isn't a marketing gimmick or a limited-time offer. It is the very foundation of our philosophy. It is our promise to every entrepreneur who joins our family: your hard work, your success, and your profits are yours to keep. All of them.
This is the story of why we made that choice, and what it means for you.
The Indian Dream and the Hidden Hurdle of Traditional Franchising
Franchising in India is booming. For an aspiring entrepreneur, the advantages are clear. You get to launch with a recognized brand, a tested business model, and a support system to guide you. It removes much of the guesswork and risk that comes with starting from scratch.
However, most traditional franchise agreements include a clause that can significantly impact your long-term profitability: the royalty fee.
A royalty fee is a percentage of your gross revenue—not your profit—that you must pay to the franchisor every single month. This fee normally ranges from 4% to 12% in the food and beverage industry. It's the price you pay for the ongoing use of the brand name and support.
While it sounds reasonable on the surface, let's think about what it really means for you, the business owner on the ground.
- It's a tax on your revenue, not your profit. Whether you have a great month or a slow one, whether your costs go up or down, the royalty fee is calculated on your total sales. This can be a serious burden, especially in the early days.
- It penalises your growth. The more you sell, the more you pay. Your reward for working harder, for attracting more customers, and for building a successful outlet is a bigger bill from the head office.
- It creates a landlord-tenant dynamic. Instead of a true partnership focused on mutual growth, a royalty-based model can feel like you're simply renting a brand name, with the franchisor collecting their share regardless of your bottom line.
We believe there is a better way to build a business community—a way built on true partnership and shared success.
Our 40-Year Legacy Demanded a Fairer Path
Our story is one of resilience and a deep understanding of the Indian market. We've spent four decades perfecting our recipes, building a dedicated customer base of over 1.6 million people, and understanding what it takes to run a successful tea business in India.
This legacy taught us a crucial lesson: success is built on trust and mutual respect.
When we designed our franchise model, we asked ourselves a simple question: How can we empower our partners to achieve the greatest possible success?
The answer was clear. We had to remove the biggest financial barrier to their long-term profitability. We had to eliminate royalties.
Our royalty-free model is our commitment to this principle. It is a direct reflection of our mission to not just sell franchises, but to "build a nationwide chai business community" where every owner is a valued partner in our growth. We see our franchise network as more than just a business—it's a movement to empower a new generation of Indian entrepreneurs.
Deconstructing the Models: A Clear-Eyed Comparison
To truly understand the Yewale Amruttulya difference, it's important to see how our model stacks up against the competition. In the bustling tea shop franchise in India market, you'll generally find three types of financial structures.
The Traditional Model: A Perpetual "Success Tax"
This is the most common model in the industry. A franchisee pays an initial fee plus an ongoing percentage of their sales.
- Chai Sutta Bar, a popular brand, charges a 4% royalty on monthly sales.
- MBA Chai Wala charges a 6% royalty on overall sales.
- Chai Point charges a royalty fee on top of a much higher initial investment.
For the franchisor, this model provides a steady stream of income. For the franchisee, it means a permanent reduction in their net profit.
The Hybrid Model: A Patch on a Flawed System
Some brands have recognized the burden of unlimited royalties and have created hybrid models. For example, Tea Time Group charges a 3% royalty, but it's capped at a maximum of ₹9,000 per month. Once your sales are high enough, you stop paying more.
This is certainly an improvement, and it shows that the market is waking up to the problem. But our question is, why just cap the problem when you can eliminate it entirely?
The Yewale Amruttulya Model: 100% of Profits Are Yours
Our model is simple and transparent. You pay a one-time franchise fee. After that, you pay zero royalty. 100% of the profit you make from running your outlet is yours to keep.
We make our money by being your trusted supplier. We provide you with our time-tested, proprietary raw materials that ensure the same authentic taste in every cup, across all 550+ locations. This aligns our interests perfectly. We are only successful if you are successful. The more tea you sell, the more raw materials you buy from us. It's a true partnership where we grow together.
The Numbers Don't Lie: A 3-Year Profitability Showdown
Let's put some real numbers to this. Imagine you run a successful tea franchise outlet with average monthly sales of ₹5,75,000—a realistic figure based on industry reports.
Here's how your profitability would look over three years under different royalty models.
| Metric | Yewale Amruttulya (0% Royalty) | Competitor (4% Royalty) | Competitor (6% Royalty) |
| Annual Gross Revenue | ₹69,00,000 | ₹69,00,000 | ₹69,00,000 |
| Annual Net Profit (Before Royalty) | ₹16,38,000 | ₹16,38,000 | ₹16,38,000 |
| Annual Royalty Payment | ₹0 | ₹2,76,000 | ₹4,14,000 |
| Annual Net Profit (After Royalty) | ₹16,38,000 | ₹13,62,000 | ₹12,24,000 |
| Cumulative Net Profit (Year 3) | ₹49,14,000 | ₹40,86,000 | ₹36,72,000 |
Note: Projections are for illustrative purposes, based on the financial structure detailed in publicly available industry data.
Over three years, the Yewale Amruttulya franchisee could earn over ₹12 Lakh more than a franchisee in a 6% royalty system. That's money you can use to expand your business, invest in your family's future, or achieve your financial goals faster. This is the tangible, real-world impact of our royalty-free commitment.
Beyond the Balance Sheet: The True Meaning of Partnership
The financial benefits are clear, but our model is about more than just money. It's about building a supportive and empowering environment for our partners.
"Royalty-Free Doesn't Mean Support-Free": Debunking the Biggest Myth
A common question we get is, "If you don't charge royalties, what's your incentive to support me?" It's a fair question, and the answer lies at the heart of our business model.
Many people mistakenly believe that royalty-free franchises offer little support. At Yewale Amruttulya, the opposite is true. We provide "full business support from setup to operations". This includes:
- Site Selection: Helping you find the right location for maximum footfall.
- Comprehensive Training: We teach you and your staff on our operational procedures to ensure smooth functioning from day one.
- Brand Power: You benefit from our 40-year legacy and the trust we've built with millions of customers.
- Marketing Support: We provide marketing guidance to help you establish a strong presence in your local community.
Our incentive is simple: we succeed only when you succeed. As your supplier, our revenue is directly tied to your sales volume. A well-supported, high-performing franchisee is our best possible customer. This creates a powerful, symbiotic partnership where our goals are perfectly aligned.
The Power of a "Chef-Less" System: Your Key to Simplicity
Another pillar of our empowerment model is our unique "chef-less" operational system. This is a game-changer for entrepreneurs, especially those without prior F&B experience.
The biggest operational challenge in the food business is often hiring and retaining skilled staff to ensure consistent taste. Our model eliminates this problem entirely.
- Guaranteed Consistency: Our pre-mixed, proprietary ingredients ensure that a cup of Yewale chai tastes exactly the same in Pune, Delhi, or Surat. This builds incredible customer trust and loyalty.
- Simplified Operations: You don't need to hire expensive, specialized chefs. Your staff can be easily trained to follow our simple, standardized procedures.
- Lower Overheads: Reduced dependency on skilled labour means lower salary costs and less operational complexity.
The chef-less system, combined with our royalty-free model, makes owning a Yewale Amruttulya franchise one of the most accessible and profitable business opportunities in the market today.
Start Your Royalty-Free Tea Franchise in India with Yewale
We are on a mission to bring the authentic taste of Yewale Chaha to every corner of India. We are actively looking for passionate partners to join our movement.
Finding the Perfect Spot: Tea Franchise in Surat, Delhi, and Beyond
While our roots are in Maharashtra, our branches are spreading across the country. We are seeing incredible demand and opportunity for a tea franchise in Surat, a city with a vibrant food culture, and for a tea franchise in Delhi, the heart of the nation.
Our dedicated team will work with you to analyze demographics, footfall, and local competition to help you find the ideal location for your outlet. Whether you are in a bustling metro or a growing Tier-2 city, the love for authentic, affordable chai is universal.
Your Journey with Us: From Inquiry to Grand Opening
We've designed our onboarding process to be as transparent and supportive as our business model.
- Inquiry: Reach out to us through our website to express your interest.
- Discussion: Our team will connect with you to understand your goals and answer all your questions.
- Location Finalization: We'll assist you in the crucial process of selecting and securing your site.
- Agreement: We sign the franchise agreement, welcoming you officially into the Yewale family.
- Setup & Training: Our team guides you through the entire outlet setup process while you and your staff undergo comprehensive training.
- Launch: We support you with pre-opening marketing and a grand launch to start your journey with a bang.
The Future is a Partnership, Not a Payout
Most experts agree that the franchise model is a powerful tool for business expansion. But we believe the model itself is ready for an evolution—an evolution from a purely transactional relationship to a truly collaborative partnership.
The future of franchising in India isn't about finding new ways to extract fees from partners. It's about finding new ways to empower them. It's about building systems that align the success of the brand with the financial independence of the individual owner.
Our royalty-free path is our answer to this future. It's a model born from a 48-year legacy of trust, designed for the next generation of ambitious Indian entrepreneurs.
Ready to Brew Your Own Success Story?
If you're tired of business models that tax your hard work and limit your potential, it's time to explore a true partnership. Join a movement that celebrates your success and gives you the freedom to keep 100% of what you earn.
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