Xero Degrees is a popular fast food franchise known for its unique and innovative menu items. The franchise offers a range of quick bites and beverages, including sandwiches, burgers, fries, shakes, and more. With over 40 locations across India and Nepal, Xero Degrees has become a popular choice for foodies looking for something different.
If you’re interested in opening a Xero Degrees franchise, one of the first questions you’ll have is: what is the startup cost? In this blog, we’ll explore the startup costs associated with opening a Xero Degrees franchise.
Initial Investment
The initial investment for a Xero Degrees franchise ranges from INR 25 lakhs to INR 30 lakhs. This includes the franchise fee, which is INR 10 lakhs, as well as the cost of equipment, furniture, signage, and other startup expenses. The exact cost will depend on the location and size of your franchise, as well as other factors like leasehold improvements and legal fees.
Franchise Fee
The franchise fee is a one-time payment that you’ll make to Xero Degrees to secure the rights to operate a franchise in a particular territory. The franchise fee for Xero Degrees is INR 10 lakhs which is payable at the time of signing the franchise agreement. This fee covers the cost of training, marketing, and ongoing support from Xero Degrees.
Equipment and Furniture
One of the biggest expenses associated with opening a Xero Degrees franchise is the cost of equipment and furniture. You’ll need to purchase kitchen equipment like ovens, grills, fryers, refrigerators, and freezers, as well as furniture like tables, chairs, and booths. The cost of equipment and furniture can range from INR 10 lakhs to INR 20 lakh depending on the size of your franchise and the type of equipment and furniture you need.
Signage and Decor
Another expense you’ll need to budget for is signage and decor. Xero Degrees has a specific brand image that you’ll need to adhere to, which means you’ll need to purchase signage and decor that meets their standards. This can include things like exterior signage, menu boards, and interior decor. The cost of signage and decor can range from INR 2 lakhs to INR 5 lakhs, depending on the size of your franchise and the complexity of the design.
Working Capital
Working capital refers to the money you’ll need to have on hand to cover the day-to-day expenses of running your franchise. This includes things like rent, utilities, payroll, and inventory. You’ll need to have enough working capital to cover these expenses for at least the first few months of operation, as it may take some time for your franchise to become profitable. The amount of working capital you’ll need will depend on the size of your franchise and the local market conditions.
Leasehold Improvements
Depending on the location you choose for your franchise, you may need to make leasehold improvements to the space you’ll be occupying. This can include things like painting, flooring, plumbing, electrical, and HVAC upgrades. The cost of leasehold improvements can vary widely depending on the condition of the space and the specific improvements you need to make.
Legal and Professional Fees
Finally, you’ll need to budget for legal and professional fees associated with opening a franchise. This can include things like legal fees for reviewing and negotiating the franchise agreement, as well as accounting and consulting fees for setting up your business structure and managing your finances. The cost of legal and professional fees can vary widely depending on the complexity of your situation and the fees charged by the professionals you hire.