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Mother Dairy Ice Cream Franchise Costs, Profit & Requirements for 2024

by Alice

Mother Dairy, established in 1974, is one of India’s most trusted and well-known dairy brands. It was set up under the National Dairy Development Board (NDDB) to support the operation flood program, which aimed to make India a self-sufficient milk producer. Over the decades, Mother Dairy has expanded its portfolio to include a wide range of dairy products, and its ice cream division has become a beloved part of its offerings.

Mother Dairy Ice Cream stands out for its commitment to quality, innovation, and customer satisfaction. The brand has carved a niche for itself in the competitive ice cream market with its extensive range of flavors and product lines. From traditional favorites like vanilla, chocolate, and strawberry to more unique and regional flavors, Mother Dairy Ice Cream caters to a diverse customer base. The brand also offers premium ice cream, sundaes, ice cream cakes, and frozen desserts, ensuring there is something for everyone.

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Mother Dairy Ice Cream Franchise Cost

Investing in a Mother Dairy Ice Cream franchise requires a clear understanding of the financial commitments involved. These costs are categorized into initial setup costs, ongoing expenses, and other associated fees. Here’s a detailed breakdown:

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Franchise Fee: The initial franchise fee for a Mother Dairy Ice Cream outlet typically ranges from INR 50,000 to INR 1,00,000. This fee grants the franchisee the rights to use the Mother Dairy brand name, access to proprietary products, and ongoing support from the franchisor.

Initial Setup Costs: These costs encompass the expenses related to establishing the franchise outlet, including the purchase of equipment, store build-out, initial inventory, and working capital. The estimated initial investment required to set up a Mother Dairy Ice Cream franchise ranges from INR 5 lakhs to INR 10 lakhs. This includes:

Equipment and Fixtures: INR 1,50,000 – INR 2,50,000

Store Build-Out and Renovations: INR 2,00,000 – INR 4,00,000

Initial Inventory: INR 1,00,000 – INR 2,00,000

Working Capital: INR 50,000 – INR 1,50,000

Ongoing Expenses: Franchisees need to budget for ongoing expenses, including royalty fees, marketing contributions, utilities, staff salaries, and other operational costs. Royalty fees are typically a percentage of the monthly gross sales, ranging from 5% to 8%. Marketing contributions may also be required to support national and regional advertising campaigns.

Miscellaneous Costs: These may include expenses for permits and licenses, insurance, and other administrative costs associated with running the franchise.

Mother Dairy Ice Cream Franchise Conditions

To maintain the high standards associated with the Mother Dairy brand, prospective franchisees must meet specific conditions. These conditions are designed to ensure that franchisees are well-equipped to manage and operate their outlets successfully.

Financial Requirements: Prospective franchisees must demonstrate sufficient financial resources to cover the initial investment and sustain operations until the business becomes profitable. This includes having a minimum net worth and liquid assets as specified by the franchisor.

Location Criteria: The franchisee must secure a suitable location for the ice cream outlet. Ideal locations are typically in high-traffic areas such as shopping malls, busy streets, residential neighborhoods, or near educational institutions. The location should provide ample space for displaying and serving the ice cream products and accommodate customer seating if applicable.

Operational Commitment: Franchisees are expected to be actively involved in the day-to-day operations of their outlet. This hands-on approach ensures that the franchise maintains the high standards of service and quality that Mother Dairy Ice Cream is known for.

Adherence to Brand Standards: Franchisees must adhere to the operational guidelines and standards set forth by Mother Dairy. This includes using approved suppliers, following prescribed product handling and preparation methods, and maintaining the cleanliness and aesthetics of the outlet.

Training Participation: Franchisees and their staff must complete the mandatory training program provided by Mother Dairy. This training covers all aspects of running a Mother Dairy Ice Cream franchise, from product knowledge and customer service to business management and marketing.

See Also: Mother Dairy Ice Cream Franchise Costs: Everything You Need To Know

Mother Dairy Ice Cream Franchise Process

The process of becoming a Mother Dairy Ice Cream franchisee involves several key steps. Each step is designed to ensure that the franchisee is well-prepared to operate a successful and profitable outlet.

Initial Inquiry: The process begins with an initial inquiry, where the prospective franchisee expresses their interest in opening a Mother Dairy Ice Cream franchise. This can be done through the Mother Dairy website or by contacting the franchisor directly.

Application Submission: Interested candidates are required to complete and submit a franchise application form. This form collects essential information about the candidate’s background, financial status, and business experience.

Review and Interview: The franchisor reviews the application and, if the candidate meets the initial criteria, schedules an interview. This interview allows the franchisor to assess the candidate’s suitability and discuss their goals and expectations.

Disclosure Document: If the candidate passes the interview, they are provided with the Franchise Disclosure Document (FDD). This document contains detailed information about the franchise, including the financial obligations, legal considerations, and the franchisor’s responsibilities.

FDD Review Period: The candidate is given a review period, typically 14 days, to thoroughly read and understand the FDD. During this time, they may seek legal or financial advice to ensure they fully comprehend the terms and conditions.

Franchise Agreement: Once the review period is complete and the candidate decides to proceed, they sign the franchise agreement. This legally binding document formalizes the relationship between the franchisee and the franchisor.

Site Selection and Approval: The franchisee works with the franchisor to select and secure a suitable location for the outlet. The franchisor typically provides guidelines and approval for the chosen site to ensure it meets the brand’s standards.

Training Program: The franchisee and their staff undergo a comprehensive training program provided by Mother Dairy. This training covers all aspects of operating the franchise, including product handling, customer service, business management, and marketing.

Store Setup and Opening: With the training complete and the location secured, the franchisee sets up the outlet with the necessary equipment and furnishings. The franchisor provides support during this phase to ensure everything is in place for a successful opening.

Grand Opening: Once the outlet is fully equipped and the staff is trained, the franchise officially opens for business. The franchisor often assists with initial marketing efforts to attract customers and generate buzz.

Advantages of Mother Dairy Ice Cream Franchise

There are several compelling advantages to owning a Mother Dairy Ice Cream franchise, making it an attractive option for entrepreneurs in the food and beverage industry:

Established Brand: Mother Dairy is a trusted and recognizable brand in India’s dairy and ice cream market. Franchisees benefit from the brand’s strong reputation, customer loyalty, and extensive market presence.

Proven Business Model: The franchise operates on a proven business model that has been refined through the success of existing outlets. This reduces the risks associated with starting a new business and provides a roadmap for profitability.

Comprehensive Training and Support: Mother Dairy provides extensive training and ongoing support to its franchisees. This includes initial training, marketing support, operational guidance, and regular updates to ensure the franchise remains competitive.

Quality Products: Mother Dairy Ice Cream is known for its high-quality products made with the finest ingredients. The brand’s commitment to quality ensures customer satisfaction and repeat business.

Strong Supply Chain: Mother Dairy’s robust supply chain and distribution network ensure a consistent and reliable supply of products to franchise outlets. This minimizes operational disruptions and helps maintain product quality.

Marketing and Brand Recognition: Franchisees benefit from the marketing efforts and brand recognition established by Mother Dairy. The franchisor typically handles national and regional marketing campaigns, while also providing resources for local marketing initiatives.

Community Engagement: Mother Dairy encourages its franchisees to engage with their local communities through events, promotions, and partnerships. This can build customer loyalty and establish the franchise as a valued member of the community.

Innovation and Adaptability: The ice cream industry is dynamic, and Mother Dairy is committed to staying ahead of trends and customer preferences. Franchisees have access to new product developments and menu innovations that keep the offerings fresh and exciting.

Supportive Franchise Network: Being part of the Mother Dairy franchise network means joining a community of like-minded entrepreneurs who share best practices, insights, and support. This network can be invaluable for new franchisees as they navigate the challenges of running a business.

Conclusion

Investing in a Mother Dairy Ice Cream franchise offers an exciting opportunity to enter the lucrative ice cream and dairy market. With a strong brand, a proven business model, and comprehensive support, franchisees can confidently build a successful business that delights customers and stands out in the competitive food and beverage landscape. By adhering to the franchise conditions and leveraging the advantages provided, Mother Dairy Ice Cream franchisees are well-positioned to achieve their entrepreneurial goals and contribute to the ongoing success of the Mother Dairy brand.

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