Written By: Shruti Agrawal

Having a House of Candy is like living one of your childhood dreams. So, to participate in a world filled with candies, filling the lives of many with sweetness, fulfilling the wishes of many and participating in celebrations, by providing the candies at their doorstep, entrepreneurs can invest in a House Of Candy franchise.

About the House Of Candy Franchise

House of Candy is a candy business that was established in Mumbai in 2014 and sells a large assortment of candies from all over the world. It is a well-known brand that dominates the candies market. Its assortment of candy is vast and includes sour candies, lollipops, chocolates, gummies, and more. There's always something for everyone, with both traditional and novel varieties available.

In addition, the firm provides distinctive packaging alternatives including gift boxes and candy jars, which are ideal for giving on any occasion. Additionally, they provide sweets banquets for occasions like birthdays and weddings.

The Pick 'n' Mix idea has emerged as the primary driver behind House of Candy's success. Additionally, it makes money from its corporate gifting offerings.

The company is proud to use premium ingredients in their candies. To ensure that everyone can enjoy their sweets, they also provide a variety of vegan and gluten-free options. The brand has its presence in both the arena i.e. as the physical retail stores as well as the online store.

Franchise Details For House Of Candy

House of Candy has over 183 outlets across the country and competes with major brands like Parle, Candico India, Nestle India, and Cadbury’s. Over the next five years, the business intends to open over 1,000 outlets in India, concentrating on Tier II growth.

• Investment: The initial investment required ranges from INR 8 lakhs to INR 20 lakhs, depending on the format offered.

• Franchisee's Role: Franchisees should invest in stocks and facilities, supervise the operations, and abide by the terms of service of the brand.
• Franchise Tenure: The franchise agreement is for a lifetime.
• Royalty: No royalty is charged. The stock would be supplied at a discount, which could be as high as 49% depending on the product.
• Preferred Locations: Malls, high footfall areas, main markets, and areas near colleges, corporations, or places where young people love to have candies.
• Franchisee Qualifications: Franchisees should have the required investment, invest in facilities and stocks, and abide by the brand's terms of service. There is no specific age limit or any academic qualification to start the franchise.

Steps To Follow To Start A House of Candy Franchise

Research: Research and familiarize yourself with the House of Candy brand, its concept, values, and target market. This will allow you to match the overarching goals of the franchise with your vision.

• Contact: Contact House of Candy representatives through their website or other franchise portals like FranchiseBAZAR to express your interest in owning a franchise.
• Investment: The initial investment required ranges from INR 8 lakhs to INR 20 lakhs, depending on the format offered. The franchise fee is approximately INR 3 lakhs + GST.
• Location: Choose a suitable location for your candy store. Preferred locations include malls, high footfall areas, main markets, and areas near colleges, corporations, or places where young people love to have candies.
• Minimum Area Requirement: The minimum area requirement for a kiosk is 50-75 sq ft, and for a store, it is 100-150 sq ft.
• Setup Cost: The setup cost for a kiosk is INR 4 lakhs, and for a store, it is INR 5 lakhs.
• Merchandise: Stock up on inventory, which includes imported candies, chocolates, goodies, soft toys, corporate gifting, and retail outlets. The stock investment required is INR 2 lakhs.
• Franchise Agreement: Sign the franchise agreement, which is for a lifetime.
• Training: Receive in-depth instruction from House of Candy. You will leave this programme with the know-how and abilities needed to run your franchise successfully.
• Marketing and Support: House of Candy provides branding, marketing, and ongoing support, including access to a network of fellow franchisees.
• Launch and Grand Opening: Plan a grand opening event to generate excitement and draw attention to the new House of Candy franchise. Offer special promotions, discounts, or free samples to encourage attendance and stimulate sales.
• Regular Store Operations: Managing inventory, hiring employees, and interacting with customers are all part of your operational responsibilities as a franchisee..
• Ongoing Support: Monitor key performance metrics such as sales, inventory turnover, and customer feedback to identify areas for improvement and optimize profitability.

Benefits of Investing In A House of Candy Franchise

• Established brand reputation with a proven track record.
• Access to a vast array of high-quality candies from around the globe.
• Diverse customer base appealing to various tastes and preferences.
• High turnover rates due to impulse purchases.
• Strong focus on quality control and product safety standards.
• Emphasis on sustainability and eco-friendly practices.
• Innovative concepts like "Pick 'n' Mix" encourage repeat visits.
• Customizable packaging solutions for corporate gifting.
• Continuous development of new products and flavours.
• Collaboration opportunities with influencers and celebrities.
• Competitive advantage against independent candy shops.
• Strategic partnerships with suppliers and distributors.
• Ongoing research and development initiatives.
• Focus on health and dietary needs with vegan and gluten-free options.
• Commitment to environmental responsibility and waste reduction efforts.

Market Trends Of Confectionery Franchise Business In India

The Indian confectionery market is growing steadily, with a compound annual growth rate of 15.40% and a market value of USD 1643.64 million in FY2020. The India Candy/Chocolate Market size is estimated at USD 2.21 billion in 2024, and it is expected to reach USD 3.05 billion by 2029, growing at a CAGR of 6.64% during the forecast period.

The Indian Sweets & Chocolate eCommerce market is predicted to reach USD 268.4 million by 2023 and accounts for 17% growth. India's market for sugar confections is expanding steadily because of the country's strong cultural love for chocolates, candies, toffees, and other traditional sweets.

There is a trend of consumer shift toward healthier options such as sugar-free and low-calorie candies.

The majority of sugar confectionery goods are given as gifts, particularly during the holidays and other special occasions, which fuels industry expansion. Manufacturers now have the chance to offer these varieties and make significant profit margins.

Growth Prospects of Candy/Chocolate Business In India

Fast Growth in Chocolate Consumption: From 2008 to 2011, India's chocolate sales increased from USD 418 million to USD 857 million, nearly doubling the country's total chocolate consumption. The volume increased significantly, from 50,000 tonnes in 2008 to 88 thousand tonnes in 2011.

• Fastest Growing Market Globally: India is the fastest growing market globally for chocolate, posting the largest increase in volume sales with 21% growth between 2008 and 2011.
• Premiumization and Seasonal Launches: New product launches in India have seen a 100% growth in premiumization claims over the last three years. Seasonal launches have also increased dynamically, with a 300% increase between 2008 and 2011.
• Health-Conscious Consumer Preferences: There is a trend of consumer shift toward healthy chocolates in India, with a preference for bite-sized chocolates that fit with the "clean eating" trend. This includes the popularity of premium and healthy options such as sugar-free, organic, and vegan chocolates.
• Growth in Modern Retail Outlets: The sugar confectionery market in India is being driven by the opening of more modern retail locations, such as supermarkets, hypermarkets, and convenience stores, which provide a variety of sugar confectionery products.
• Low Entry Barriers and Rising Disposable Income: The disposable income growth of consumers in India is expected to be one of the fastest in the world, with predictions for a 10% CAGR over the forecast period. This is expected to drive the exploration of premium chocolate confectionery by local consumers.

So, By intertwining the rich heritage of Indian sweets with the global allure of chocolates, entrepreneurs have the opportunity to create a confectionery haven that transcends cultural boundaries and sparks joy in every bite.

With innovation as your compass and passion as your fuel, starting a candies/chocolate franchise business in India isn't just about building a brand; it's about crafting a legacy that sweetens the lives of generations to come.

If you are planning to enter into a candies/chocolate franchise business, you must contact the FranchiseBAZAR.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.