House of Candy Franchise: Low Investment, High Returns & Sweet Profits

In recent years, the confectionery industry has grown rapidly due to the demand for variety and quality candy.

Among the many brands bringing about a change in this sphere, House of Candy franchise stands tall for its extensive product range and innovative franchise model. The brand became an instant hit with today’s consumers by marrying contemporary appeal with nostalgic flavors. 

Looking at the initial investment vis-a-vis return ratios, the House of Candy franchise offers an attractive opportunity for many budding entrepreneurs to enter the seemingly cashing confectionery industry.

About the Brand House of Candy

House of Candy was co-founded by Sameer Bhatia and Kanu Priya Sharma to provide an exciting range of candies to consumers in India. The brand has successfully adopted the shop-in-shop (SIS) model, partnering with over 300 retailers, including prestigious names such as Hamleys.

CRUCIAL MILESTONES:

– Expansion to 183 outlets across India.

– Partnerships with other renowned retailers through the SIS model.

– Introducing various product ranges: from lollipops to novelty items.

This brand also produces super-premium candies, chocolates, lollipops, and other novelty items geared toward a vast consumer base. Its ever-increasing fame proves that House of Candy franchise is indeed a relevant and profitable choice to invest in. 

Also read: The Bangalore Cafe Franchise: High-Profit Potential, Investment Costs & Growth Opportunities

Key Details of the House of Candy Franchise

Brand Name: House of Candy

Industry: Confectionery

Investment Range: Starting from ₹80,000

Franchise Fee: None

Royalty Fee: ₹10,000 per month

Manpower Requirements: 3 personnel per outlet

Setup Area: 4.5 sq. ft.

USPs:

– Diverse Product Line: 50+ novelty items and 16 types of candies.

– Customizable Options: Regular and vegetarian options.

– Pan-India Delivery: Free on orders above ₹500.

– Sustainable Initiatives: Working toward an expanded range of halal and allergen-free products. 

-House of Candy thus marries the international candy trends smartly with local sensibilities, making a statement for itself in a competitive market.

House of Candy Franchise Models

Two major franchise options are available with House of Candy franchise:

Kiosk Model:

Area: 4.5 sq. ft.

Side Features: Compact setup for malls and high-footfall areas.

Investment: Less investment is needed for the initial setup.

Who Should Buy: Entrepreneurs who want to run a comparatively small and manageable enterprise.

Shop-In-Shop Model (SIS):

Features: Integrated into an existing store.

Benefits: Shared operational expenditures and an inbuilt customer base.

Who Should Buy: Retailers looking to build on their offerings.

Both models have strong ROI opportunities; thus, dependent on the market scenario, franchisees can choose when to invest.

House of Candy franchise Cost Breakdown

A candy franchise takes time, and establishing an investment plan must be done with thorough consideration.

1. Infrastructure Investment

Setup Area: Minimum 4.5 sq. ft.; best suited to very small kiosks or shop-in-shop formats.

Equipment Costs: Ranges from ₹50,000 to ₹52,000, comprising:

First initial stocks of candies and confectionery items.

Display units, shelves, or racks for product arrangement.

Basic signage and branding elements for visibility.

2. Franchise Costs

Franchise Fee: ₹0 (no upfront fee) – thus affordable to get in.

Royalty Fees: ₹10,000 per month as the franchisor’s share for the usage of the brand, operational support, and marketing.

3. Operational Costs

Manpower: Salaries for 3 employees may vary, depending on the kind of work being done regarding sales and inventory control and customer service.

Miscellaneous Expenses: ₹5,000 – ₹10,000 пeг month.

4. Total Initial Investment

Calculation suggested that all-the-way total initial investments would range somewhere between ₹80,000 to ₹1,00,000, including setups and operational.

House of Candy franchise Profit Margin and ROI

House of Candy franchise presents a lucrative proposition, entailing profit margins ranging most often from 30 to 50% based on a host of factors, including location, efficiency in operations, and sales numbers. Other factors which gain significance concerning the return on investments (ROI) include the following:

• Footfall: Stores located in high-traffic locations such as malls and shopping centres would be selling more for quicker ROIs.
• Product Mix: A well-curated mix of premium and novelty candy would be quite favorable in improving profit margins.

Franchisees now have a chance to take back their investments in 12 to 18 months, so good management of an operation would be a great opportunity for a good payback. 

Space Requirements

The franchise is designed well with the idea of compactness and efficient running.

Kiosk model– a mere 4.5 sq. ft. is required.

• Shop layouts– catching sight of customers and maintaining an accessible movement for customers.
• Considerations for locations: Malls, supermarkets, and high-street areas where steady footfall is expected. 

Benefits of Investing in a House of Candy Franchise

1. Established Branding and Customer Acceptance

House of Candy is a well-recognized brand in the confectionery market that has gained its name because of its premium quality and variety. Being a part of this franchise gives you established branding that the consumer accepts, hence decreasing the hurdles to brand awareness-building from scratch.

2. Low Initial Investment

With an investment starting as low as ₹80,000, coupled with other demanding minimal space of 4.5 sq. ft. House of Candy stands as one of the cheapest franchises in the market. This low entry allows new entrepreneurs to start their business without the burden of serious risks upfront.

3. Wide Product Range

House of Candy sells a variety of candies: vegetarian, non-vegetarian, gluten-free, and vegan. This makes the product appealing to the widest audience with many dietary preferences.

4. Operational Support Provided by the Brand

Support by the House of Candy covers employees’ training and stocks at an operational level on a day-to-day basis, thereby ensuring smooth operation and less time for new franchise owners to learn.

5. Recurring Customer Base

Candy is a form of luxury that House of Candy offers in premium quality and varieties enough to make the customers come back frequently. This ensures steady walk-ins and repeat business and consequently enhances long-term profitability.

6. A Straightforward and Easy Business Model

Uniquely, House of Candy does not need major manpower, is easy to maintain, and has low inventory. A perfect pick for any first-time entrepreneur seeking an easy business.

7. Strategic Location Advantage

House of Candy locations engineer supermarkets, commercial malls, airports, and amusement parks, attracting high pedestrian traffic. The franchise further assists in site selection for optimal visibility and customer engagement.

Confectionery Market Trends

The Growth of Premium and Novelty Candies: The candy market has grown to include many premium and novelty products to fill the gap for the increasing demand for unique and high-quality tidbits. Consumers are not satisfied with traditional confections; they now seek exotic flavours, organic options, and personalized products.

Health-Conscious Choices: With health being a prime consideration, demand is soaring for sugar-free, gluten-free, and vegan-allergen-friendly candies. Brands such as House of Candy are tapping into this trend with the introduction of healthier candy offerings that include a variety of choices.

Sustainability Trends: Consumers are well aware of the impact their purchase has on the environment. Most candy companies now adopt sustainable packaging, minimizing waste, and keeping production eco-friendly. The halal and allergen-free extension of House of Candy is an embodiment of these trends.

Digital Transformation: E-commerce is taking centre stage with online sales increasing by the day and thus creating a new avenue for reaching customers with candy brands.

Environmental and Social Responsibility

Eco-Friendly Packaging: With sustainability efforts at the forefront, House of Candy franchise is beginning to make the transition to environmentally friendly packaging to reduce the carbon footprint. The switch to recyclable materials and biodegradable wrappers gives the brand an edge in attracting environment-friendly consumers.

Supporting Local Communities: House of Candy focuses on giving to the communities in which it operates. The brand supports various local initiatives in collaboration with schools and charitable organizations to help uplift social living conditions and promote candy as a treat that spreads enjoyment for all.

Sustainable Sourcing: The brand guarantees that the ingredients used in any product produced are carefully harvested while considering sustainable agricultural practices. By keeping the supply chain transparent, House of Candy franchise empowers consumers to make right decisions concerning the ingredients.

Halal and Allergen-Free Products: A wider range of halal and allergen-free products planned for the future by House of Candy franchise has a clear implication of inclusivity and social responsibility to different kinds and sensitive consumer segments.

Documents Required

Legal Register:

• Business registration certificate, i.e., sole proprietorship, partnership, private limited company.
• GST registration certificate for tax compliance.

Identity Proof:

• PAN card for taxation purposes.
• Aadhaar card as government-issued identity proof.

Financial Proof:

• Current bank statements to prove financial capability and stability.
• Income tax returns, if applicable, to show financial history.

Compliance Certificates:

• All local trade licenses will be as per jurisdiction and industry regulations.

How to Apply for the House of Candy Franchise

Submit Inquiry: It is possible to communicate interest in the trademark by visiting its official website or sending an email to marketing@samkan.in.

Prepare Documents: The preparation of documents needs to be done for all legal and financial matters so that the application process can go on smoothly.

Approval Procedure:

• First Screening: The trademark will examine the application for eligibility.
• Discussion: This involves a detailed discussion with the management team of the trademark so that expectations are aligned and terms clarified.
• Launch Support: Upon approval, it shall impart training to you regarding marketing strategies, operational setup, and inventory management for the successful launch of the brand. 

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Frequently Asked Questions

1. Are the products halal?

Our products are not currently halal-certified, yet we understand how much customers value halal-certified options. We expect to provide halal-certified products shortly.

2. What is the shelf life of the products?

The shelf life of our products is different for each type of item. Most of our candies and snacks should stay good for around 12 to 18 months if stored in a cool and dry environment. We recommend you check the packaging for the exact expiry date and storage instructions.

3. Do you have vegan and/or gluten-free gifts?

Yes, we have a selection of candies that are vegan and gluten-free. They are suitable for dietary restriction or preference because they are produced without any animal-derived ingredients or gluten-containing grains. Product packaging and our website offer specific information.

4. What is the time frame for delivery?

Generally, the search will be completed within 1 to 2 working days, and the delivery would normally take between 5 to 7 working days depending on the area. A little extra time can be taken in remote areas. You will receive the tracking once the order is shipped.

5. Is cash on delivery available?

Yes, we encourage cash on delivery (COD) for customer convenience. To encourage prepaid orders, we, therefore, are entitled to a 5% discount on all prepaid orders via online payment methods.

6. Will shipping charges be levied on products?

Shipping is free on orders above ₹500. For orders below ₹500, a nominal amount of ₹50 will be charged. This helps us maintain high standards for packaging and delivery service.

7. What are the requirements to open a House of Candy franchise?

To start a House of Candy franchise, you need a retail space of at least 100-200 sq. ft., an initial investment covering franchise fees, inventory, and store setup, and a passion for the confectionery business.

8. How much investment is required for a House of Candy franchise?

The investment varies based on the location and store size. Typically, the initial investment ranges from ₹10-₹15 lakhs, which includes inventory, branding, and operational costs.

9. What support does House of Candy provide to franchisees?

Franchisees receive comprehensive support, including store setup guidance, staff training, marketing assistance, and ongoing operational support to ensure smooth business operations.

10. How long does it take to set up a franchise?

Once approved, it takes approximately 4-6 weeks to set up and launch a House of Candy franchise, depending on location readiness and store setup.

11. What is the profit margin for a House of Candy franchise?

House of Candy franchises offers high profit margins, typically ranging from 35-50%, depending on product categories and location footfall.

Conclusion

The confectionery business is a fairly lucrative industry to branch off into, and House of Candy franchise, besides being an affordable investment, offers good returns and bright prospects. 

With a recognized brand name and an ever-increasing clientele, operating this franchise becomes much easier. Mentoring for business success is available for existing or first-time owners alike through the House of Candy franchise. 

Follow the above-mentioned steps and get in on this thriving business to reap the rewards of being associated with an adored and trusted brand!