Chandikala unveils franchise plans, with investment starting at INR 17.3 million

Ahmedabad-based silver jewellery brand Chandikala has outlined plans to expand through franchising. With an initial focus on Gujarat and Maharashtra, the brand has presented three partnership formats requiring proposed investment of between INR 17.3 million and around INR 40 million. For prospective franchise partners in India, the key distinction between these options is how responsibility for store ownership, operations and recruiting further partners is divided.

Preparing to expand beyond two stores

According to a FranchiseTv report dated 6 November 2026, founder Kalpesh Soni shared the brand’s expansion plans and investment proposals during a webinar. He said Chandikala’s first store opened in Shivranjani, Ahmedabad, on 12 December 2022, and that the brand currently operates two stores.

A third, larger, company-owned store is planned for Nikol after Diwali. Two more company-owned stores are proposed for Ahmedabad, while three additional stores are also in the pipeline. These are future plans and should not be counted as part of the current operating network.

The company’s franchise expansion is focused on Gujarat and Maharashtra. However, the geographical scope differs by format. The company-operated partnership is limited to these two states, while the partner-operated format is described as available across India.

Partner-operated stores: proposed investment of INR 17.3 million

The franchise-owned, franchise-operated format proposes a 400 sq ft shop. The company prefers locations just off the main commercial street in tier-two cities. Under this arrangement, the partner is responsible for both investment and day-to-day operations.

The company’s proposal allocates INR 2 million to shop fit-out, INR 300,000 to the franchise fee and INR 15 million to a stock deposit. This brings the total proposed investment to INR 17.3 million. The stock deposit accounts for the largest share of the cost, rather than fit-out or franchise fees.

Based on an assumed structure for jewellery-making charges, the company quotes a gross margin of approximately 25%. For a seven-year agreement, it projects a 37-month payback period and an internal rate of return of 36%. These are company projections, not verified results from an existing franchise store. Gross margin should not be confused with net profit after all operating expenses.

Company-operated option requires a larger store and more capital

The franchise-owned, company-operated format proposes a 900 sq ft store on a main commercial street. The partner provides the capital, while the company runs the shop. This option is described as available only in Gujarat and Maharashtra.

For this format, fit-out costs are INR 4.5 million, the franchise fee is INR 300,000 and the stock deposit is INR 35 million. Total investment is quoted at around INR 40 million. Alongside a share of revenue, the company’s proposal includes a minimum guaranteed annual return of 10% on investment.

The company projects a 50-month payback period and an internal rate of return of 25% for this option. Rather than treating the minimum guarantee as unconditional assured income, prospective partners should examine its contractual basis, payment schedule and applicable conditions. Even with the company running the store, the investor’s rights and oversight arrangements need to be clearly set out in the written agreement.

A third format with responsibility for regional expansion

Under the area development partner option, the entrepreneur must open a 400 sq ft partner-operated store and develop a sub-franchise network. The area development fee is quoted at INR 1.5 million, with investment in the partner’s own store at around INR 17 million. Total proposed investment is approximately INR 18.5 million.

Under this arrangement, the partner would receive 50% of the franchise fees they generate and 2% of the cost of stock purchased by sub-franchise partners. The company has presented a 12-unit expansion plan and a projected payback period of 36 months. Here, the role extends beyond running a single shop to building a network.

Practical takeaway: Before choosing any format, obtain written details on stock deposit refunds, operating expenses, territorial rights and termination terms. Test the company’s return projections against demand and costs in your chosen location; an expansion target does not guarantee the success of an individual store.