MBA ChaiWala Scam - Is MBA Chai Wala Franchise A Fraud Or Not?

Table Of Contents

1. Who is MBA Chaiwala?
2. MBA Chaiwala Franchise Scam
3. MBA Chaiwala Exposed?
4. Success Story Of MBA Chaiwala
5. Is MBA Chaiwala Worth It?
6. MBA Chaiwala Total Net Worth
7. Is MBA Chaiwala Franchise Profitable or Not?
8. 5 Tips To Protect Yourself From Franchise Scam
9. MBA Chaiwala Downfall - Reasons
10. FAQs

Who Is MBA Chaiwala?

The CEO and founder of MBA Chaiwala is Prafull Billore. In Ahmedabad, he opened his tea shop with Rs. 8,000 and as of 2023 his net worth is over 24 crore.

 

MBA Chai Wala is a captivating entrepreneur who has gained international recognition for his unique and inspiring journey. Born and raised in a small village in India, he started his career as a humble tea vendor, commonly known as a chai wala. Leveraging his business acumen, he successfully transformed his humble tea stall into a thriving business empire, becoming a symbol of resilience and entrepreneurship. With his innovative ideas, entrepreneurial spirit, and unyielding drive, MBA Chai Wala has become an inspiration to aspiring entrepreneurs around the world.

Since 2019 MBA Chaiwala become the most famous outlet in India, they have 200+ franchise in 100+ cities in India. He started this business in Ahmedabad with a road tea stall and he didn't completed his MBA.

In 2023, the director of MBA Chaiwala named Prafull Billore was involved in a franchise scam. In this article, we will provide you the information about this scam, Is MBA Chaiwala Franchise is Fraud or Not? , But we do not have any support or admiration for him or any other individuals or organizations involved in this scam.

MBA Chaiwala Franchise Scam

Nowadays, we all are hearing some news about the MBA Chaiwala Franchise Fraud or scam. MBA Chaiwala, who rose to fame for his entrepreneurial success story, was accused of cheating by a group of youths who claim that the founder Prafull Billore took lakhs of rupees from them for franchise but failed to deliver on his promises. This group has lodged a complaint with the Lasudia police station, and an inquiry was ordered by DCP Suraj Verma.

The group of youth did complaints, and said that MBA Chaiwala's director Prafull Billore took Rs. 10 lakh each from them for franchise and promised to set up the business and ensure a daily income of at least Rs. 10,000. However, they claim that none of this promise has materialized, and they are now struggling with debt due to the loans they took to open the store.

All the allegations were denied by Billore's lawyer, who says that everything was done according to the contract.

MBA Chaiwala Exposed? 

Prafull is not believed to have committed fraud because his business model involves selling his franchise for between 10 and 30 lakhs, depending on the location. In contrast, franchises for outlets like Domino's, McDonalds, and Starbucks cost between 10 and 15 crores and are carefully analyzed to ensure that people in the area can afford a 500 rupee cup of coffee and that there will be sufficient profit margin. 

Prafull's offer of a 10 to 30 lakh franchise has taken people's curiosity, especially given his reputation as the "MBA Chaiwala" in India. While Prafull the director of MBA Chaiwala claims that franchisees can expect daily sales of up to 15k and will be refunded for any losses, he has been accused of lying and has been served with a legal notice of Rs. 1 Crore.

Success Story Of MBA Chaiwala

MBA Chaiwala knows the importance of social media and digital marketing in promoting and expanding small businesses. With the help of social media like YouTube, Twitter, Facebook etc. MBA Chaiwala has become a successful business in very short time. He creates an strong online presence with the help of motivation to youth. One of the important and key benefit of social media and digital marketing is that they are relatively inexpensive and easy to access through social media, "MBA Chaiwala" was able to create an widely audience that support his passion and dedication.

Is MBA Chaiwala worth it?

MBA Chaiwala achieved phenomenal success shortly, not all business ventures are successful like MBA Chaiwala. The company appreciates the people who supported it when it was struggling. MBA Chaiwala's net worth from December 2022 was 3.4 crore. By the end of 2023, his net worth is expected to be doubled. The Director of MBA Chaiwala knows that selling tea does not make him a millionaire so he starts to selling his franchise.

MBA Chaiwala Total Net Worth

Prafull Billore's daily earning is approximately 1.5 lakh and the entire month's earning is approx. 45 lakh rupees and the total net worth is around 30 million. MBA Chaiwala's profit margin is 10 to 25 %.

Is MBA Chaiwala Franchise Profitable Or Not?

Opening a franchise of MBA Chaiwala is profitable or not, it varies depending upon the location you plan to open the franchise, the competition in that area, and also your own skills, qualification and experience. In general, opening a franchise can be profitable if you do your proper research and plan it carefully.

5 Tips To Protect Yourself From Franchise Scams

1. Before starting new business, investing or buying something do your own research.
2. Get some expert advice like a lawyer, accountant or franchise consultant who can review the franchise disclosure documents.
3. Be wary of franchisors who promise high returns on investment and guarantee success.
4. Take time and do research and study about the business model of that particular franchise and then take any decision.
5. Try to connect or contact other people who have already invested in the same franchise and ask them about their experience working with the company.

MBA Chaiwala Downfall- Reasons

• The main reason for the downfall of his business is Margin and competitive pricing. 
• MBA Chaiwala's strategy also have some problems. Unlike his competitor Chai Sutta Bar who has the perfect strategy for their business, MBA cahiwala did not have a good strategy to run his business. Their chai and other food items are not so affordale.
• Moreover, his franchise are not making money and trapping common people. In the end, it has been cleared by the company that no franchise fee will be returned to any franchise owner who has lost their amount or money as there is no clear agreement between them regarding  this.

FAQs

Q.1. Is MBA Chaiwala in profit or loss?

Ans. As of 2023, MBA Chaiwala is in solid and stable financial condition.

Q.2. What is the cost of MBA chaiwala franchise?

Ans. MBA Chai Wala franchise cost in India –

Investment	Rs. 8-10 lakhs (including Equipment)
Franchise Fee	Rs. 3 lakhs
Model	Kiosk
COMMISSION/REVENUE SHARING	40-50%
AGREEMENT TENURE	3 YEARS