So you want to buy aFranchise
In June 2026, Delhi police arrested three directors of a café “franchise” after 1,069 people put in ₹4.17 crore for guaranteed monthly returns. The same night J's phone offers him a franchise. He builds a ₹21 lakh chai outlet on paper and follows ₹100 of sales to the last rupee: GST he can't claim back, the royalty floor, the delivery app, rent, staff and the EMI. Plus what the big chains' own filings say, fake franchise websites, and J's ten-point checklist.
A share of sales every month
Give us a few lakh, and we pay you a share of the sales every month. Famous name, ready menu, “you just invest, we run it.”
The flaw
Everyone is paid before the owner: the tax office, the brand, the app, the landlord, the staff and the bank. Of every ₹100 sold, J keeps ₹8.52. The brand takes ₹6.74, good month or bad.
Run J's numbers
The defaults are the exact worked example from the episode. Move any slider to your own quote.
26 out of 70
Seven questions, ten points each — higher is better on every one. The red tick is the season average so far.
Two years, run two ways
The good version
The street is right and the brand is strong: ₹6 lakh of sales a month from month four, about ₹90,000 a month after the EMI, the ₹21 lakh back in about 19 months.
The realistic version
Sales settle at ₹4 lakh: a few thousand short every month after the EMI. At month 18 J wants out and gets back the ₹3.6 lakh deposit and a few lakh for the fittings.
J's checklist
- Search the brand on IP India's free trademark search: the brand should own the name it sells.
- Never pay a franchise fee to a website link or a personal account. Big chains like Domino's, McDonald's and KFC don't sell single outlets to individuals.
- A guaranteed monthly return is a reason to walk away, or to get a lawyer to read it first.
- Talk to five existing owners you find yourself, not the three the brand suggests, and ask what they sell in a day.
- Read the royalty clause for “whichever is higher”, and list what you must buy only from the brand, at what price.
- Get territory and exit terms in writing: how close the next outlet can open, and what is refunded if you leave.
- Work out your own break-even sales per day with your rent, staff and EMI, then check it still works if sales are a third lower.
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Franchise — Calculator
Editable spreadsheet with the episode's numbers already in. Change any yellow cell.
DownloadFranchise — Playbook PDF
The real bill, the scorecard, two years run two ways, a checklist and every source.
DownloadJ's Wall poster
The season leaderboard so far, A4. Pin it up and play along.
DownloadScore any business /70
J's seven questions as a blank scorecard. Score your own idea before you spend.
DownloadWhere the numbers come from
Every number in the episode, and where it came from. Claims in posts and videos are their authors' claims.
The case and the rules
• The Tribune, 30 Jun 2026: Delhi police arrest 3 directors in ₹4.17 crore FunTasteTic Cafe case (BUDS Act s.21) https://www.tribuneindia.com/news/delhi/delhi-police-arrest-3-directors-in-rs-4-17-crore-funtastetic-cafe-mlm-ponzi-fraud/
• PRS India: The Banning of Unregulated Deposit Schemes Bill, 2019 https://prsindia.org/billtrack/the-banning-of-unregulated-deposit-schemes-bill-2019
• SEBI order quoting section 11AA(2) (collective investment schemes) https://www.sebi.gov.in/sebi_data/attachdocs/1394195748705.pdf
• Khaitan & Co, Legal 500 Franchise & Licensing guide (India), Oct 2026 https://www.khaitanco.com/sites/default/files/2026-10/Legal%20500%20-%20Franchise%20&%20Licensing.pdf
• NCDRC, Varun Ahuja v M3M, 23 Sep 2024 (LiveLaw) https://www.livelaw.in/amp/consumer-cases/buyers-purchasing-units-to-earn-rental-profit-not-consumers-ncdrc-dismisses-complaint-m3m-india-martial-buildcon-m-worth-services-273147
• Trilegal: Supreme Court on arbitrability of disputes https://trilegal.com/knowledge_repository/supreme-court-on-arbitrability-of-disputes/
• Bar & Bench: determinable contracts and specific performance https://www.barandbench.com/law-firms/view-point/not-every-terminable-contract-is-determinable-to-resist-specific-performance-supreme-court-clarifies
Tax
• Gujarat AAR GUJ/GAAR/R/35/2020 (Tea Post), 3 Jul 2020: 18% GST on franchise fees and royalty https://gstcouncil.gov.in/sites/default/files/AAR/guj_aar_35_2020_tppl_03.07.2020.pdf
• Gujarat AAR No. 51/2022 (Ridhi Enterprise), 30 Dec 2022: 5% restaurant GST without input credit https://gstcouncil.gov.in/sites/default/files/AAR/gujarat_aar_order_no.51-2022_ridhi_enterprise.pdf
• RSM India: TDS and TCS changes from 1 Apr 2025 https://www.rsm.global/india/sites/default/files/media/publications/2025/RSM%20India%20Newsflash%20-%20Overview%20of%20Changes%20in%20TDS%20and%20TCS%20provisions%20w.e.f.%201st%20April%202025.pdf
Company filings and results
• Sapphire Foods investor presentation, 11 Aug 2026 https://nsearchives.nseindia.com/corporate/SAPPHIRE_11082026125147_SapphireFoodsCorporatePresentation11082026.pdf
• Jubilant FoodWorks Q4 FY26 business update, 6 Apr 2026 https://nsearchives.nseindia.com/corporate/JUBLFOOD_06042026193547_Q4FY26_Business_Update.pdf
• Jubilant FoodWorks: Domino's master franchise agreement, 1 Apr 2026 https://nsearchives.nseindia.com/corporate/JUBLFOOD_01042026084707_SEDominosMFAApril12026.pdf
• Restaurant Brands Asia filing, 3 Aug 2026 https://nsearchives.nseindia.com/corporate/RBA_03082026162713_Finalupload.pdf
• Westlife Foodworld Q4 FY26 earnings presentation https://www.westlife.co.in/wp-content/uploads/2026/05/Q4FY26-WFL-Earnings-Presentation.pdf
• Storyboard18, 21 Feb 2026: Devyani suspends Pizza Hut expansion, shuts loss-making stores https://storyboard18.com/brand-marketing/devyani-international-suspends-pizza-hut-expansion-shuts-loss-making-stores-90292.htm
• Entrackr: Chaayos FY25 results https://entrackr.com/fintrackr/chaayos-crosses-rs-300-cr-revenue-in-fy25-ebitda-jumps-65x-11088950
• Finshots, 31 Oct 2025: the Lenskart IPO explained https://finshots.in/archive/the-lenskart-solutions-ipo-explained/
• The Ken, 2 Apr 2025: Lenskart franchisees (paywalled)
Owners, brands and complaints (shown as claims)
• Business Today, 23 Jul 2018: how Amul grants franchises with no royalty https://businesstoday.in/current/economy-politics/how-amul-grants-franchise-to-retailers-with-no-royalty-revenue-share/story/280584.html
• Amul: franchise business opportunity page https://amul.com/m/amul-franchise-business-opportunity
• Indian Food Times, 23 Apr 2023: MBA Chai Wala franchise complaints https://indianfoodtimes.com/mba-chai-wala-faces-allegations-of-fraud-from-franchise-owners
• Gulf News, 21 Aug 2017: McDonald's ends partnership with Vikram Bakshi's company https://gulfnews.com/business/sectors/retail/mcdonald-s-to-shut-169-outlets-in-india-1.2077906
• StartupTalky: Burger Singh franchise model https://startuptalky.com/kabir-jeet-singh-burger-singh-brand-franchise-insights/
• Deccan Chronicle, 24 Mar 2023: 32 fake KFC franchise websites, Hyderabad
• The Tribune, 6 Sep 2021: fake Amul, Patanjali and Haldiram franchise sites
• Videos and posts (claims by their authors): HimanshuG, "Franchise FRAUD Sting OPERATION: What's Wrong With India's Franchise Business!"; Ravi Kirana Business, "Big Scam In Franchise | Franchise Mat Lena…"; viewer comments under these videos; an Instagram franchise account's post, 9 Aug 2026
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Made by Jayanth M B, entrepreneur · https://www.linkedin.com/in/jayanthmb/
J is a made-up character. Every price, rule, quote and post shown is real. Worked examples and the two-year scenarios are illustrations built from the numbers in the video. Education only — not financial, legal or tax advice. Rules and fees change; check the current terms before you act.