Total investment
Add franchise fee, setup and interiors, security deposit, opening inventory, licences and working capital. Ask the brand for this as a written breakup.
Monthly profit and payback
Monthly net profit is sales minus product cost, rent, salaries, royalty, utilities and other expenses. Payback period equals total investment divided by monthly net profit. As an illustration only: an investment of ₹20 lakh with ₹50,000 net monthly profit gives a payback of 40 months.
Break-even sales
Break-even sales equal fixed monthly costs divided by the contribution margin (the share of each rupee of sales left after variable costs). Always use conservative sales assumptions.
This guide is general information, not legal or tax advice. Check current rules with a qualified professional.