Naadbrahma Idli is a QSR (Quick Service Restaurant) franchise outlet that specializes in selling high quality idlis at Rs 10 per piece.
They started out in Gulbarga 10 years ago, but the franchise model found sucess in Pune in late 2021 and since then they have opened up 500 franchise outlets all over Maharashtra.
The franchise fees is 5 lakhs for 5 years last time I asked them.
5 lakhs x 500 outlets = 25 crores.
Now assuming they have amassed a corpus of 25 crore Rupees as franchise fees, and they earn a decent return of 12% p.a. by investing it properly, that’s a 3 crore per year of income.
Additionally, they earn revenue by selling their own mandatory idli batter and sambhar and chutney packets to their own franchise outlets. Let’s assume that they earn an additional 2 crores from the sales of those items.
That makes it a complete 5 crores!
We should not forget that the 25 crores of Franchise fees will not be returned and they will become company’s assets over 5 years, so that is additional over the 5 crores yearly business.