MBA Chai Wala Franchise

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

Table Of Contents

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

Who Is MBA Chai Wala?

The CEO and founder of MBA Chai Wala 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 Chai Wala 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 Chai Wala named Prafull Billore was involved in a franchise scam. In this article, we will provide you the information about this scam, Is MBA Chai Wala 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 Chai Wala Franchise Scam


Nowadays, we all are hearing some news about the MBA Chai Wala Franchise Fraud or scam. MBA Chai Wala, 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 Chai Wala’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 Chai Wala 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 Chai Wala” in India. While Prafull the director of MBA Chai Wala 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 Chai Wala

MBA Chai Wala 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 Chai Wala 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 Chai Wala” was able to create an widely audience that support his passion and dedication.

Is MBA Chai Wala worth it?

MBA Chai Wala achieved phenomenal success shortly, not all business ventures are successful like MBA Chai Wala. The company appreciates the people who supported it when it was struggling. MBA Chai Wala’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 Chai Wala knows that selling tea does not make him a millionaire so he starts to selling his franchise.

MBA Chai Wala 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 Chai Wala’s profit margin is 10 to 25 %.


MBA Chai Wala Franchise A Fraud Or Not

Opening a franchise of MBA Chai Wala 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 Chai Wala Downfall- Reasons

  • The main reason for the downfall of his business is Margin and competitive pricing. 
  • MBA Chai Wala’s strategy also have some problems. Unlike his competitor Chai Sutta Bar who has the perfect strategy for their business, MBA chai Wala did not have a good strategy to run his business. Their chai and other food items are not so affordable.
  • 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.


Q.1. Is MBA Chai Wala in profit or loss?
Ans. As of 2023, MBA Chai Wala is in solid and stable financial condition.
Q.2. What is the cost of MBA chai Wala franchise?
Ans. MBA Chai Wala franchise cost in India –
Investment Rs. 8-10 lakhs (including Equipment)
Franchise Fee Rs. 3 lakhs
Model Kiosk

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