• The Franchisee can start the business with a freezer truck and walk-in freezer, initially with an investment of Rs.25 Lac only including working capital. Loans & Government subsidies are available up to 90% under Standup India Scheme of GOI.
  • The company is committed to giving a margin of 10% to Franchisee distributors, which is higher than the current industry standard of 8.5%.

Under this model, the payback period is around 12 -18 months.

Under this model, break-even sales are achievable on sales of 6.5 lac per month.

Frozen truck

Walk-in freezer

Sales volumes are expected to grow at 20%, while the prices are kept constant. This will directly increase the revenues by 20%. Majority of the costs, being variable, are also expected to rise by 20% year-on-year. The manpower cost is expected to rise at 10%. The assets are depreciated using straight line method with a useful life of 7 years. The residual value is assumed to be zero. In general, the walk-in freezer and the frozen truck has a useful life of more than 7 years. The base case scenario gives an annual profit of Rs.12 lacs in the first year of operations.

  • Franchisee fee is Rs.300,000 and is converted into soft loan, payable in five years, to be paid after two years of successful operations.
  • Franchisee fee is free for first 100 entrepreneurs.
  • Royalty free for first 100 entrepreneurs.

The investment required is Rs.25 lacs. Out of the total amount, Rs.5 lac will be used for purchasing a walk-in freezer & Rs.10 lac for purchasing a small refrigerated truck. Rs.10 Lac will be used for working capital requirement. The Franchisee is expected to bring in a minimum of 10% and the balance will come as bank loan and eligible incentives. The loan is repayable within 7 years. The repayments are expected as per the bank norms. The Debt Service Coverage Ratio is very comfortable throughout the loan tenure.

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