What is franchising?
A way of doing business – a business model.
A business relationship whereby the owner of a business assigns to independent people/companies the right to market and distribute the owner’s goods and services and use the business name for a fixed period of time in a fixed territory.
The Franchisor (business owner) provides a licensed privilege to do business plus offers assistance in organized training, merchandising and management, in return for fees from the contracting agent (franchisee).
THE LEVEL OF INVESTMENT & ROI
The investment varies with the area you are covering for your centre. From our experience of over a decade at Health Zone we have developed some highly successful business models. These business models are especially successful in tier II & Tier III towns where the aspirations are big but market is price sensitive.
|Area (Sq Ft)||Business Model Type||Capital Investment||Return on Investment Projected ROI|
|300 to 500||Xpress||12-15 Lakh||Approx 70% to 100% recovery Within 8-1 Years of Operations Depending upon Management & Market Conditions.|
|800 to 1200||Exotica||20-23 Lakh||Approx 60% to 100% recovery Within 1-2 Years of Operations Depending upon Management & Market Conditions.|
|1500 to 2000||Luxurious||27 to 30 Lakh||Approx 45% to 100% recovery Within 1.2-2.5 Years of Operations Depending upon Management & Market Conditions.|
|2500 to 3500||Royale||Around 40 -50 Lakh||Approx 45% to 100% recovery Within 1.2-2.5 Years of Operations Depending upon Management & Market Conditions.|
DECIDING ON LOCATION
- A good location for this business is a high traffic road with public transport in or close to a good residential area. Preferably a ground floor main road property with good frontage. However, outright commercial location should be avoided.
- Comfortable parking facility should be considered important.
MARKETING THE BUSINESS
- Trained & MOTIVATED manpower.
- Smooth systems & Standardized procedures.
- Efficient use of space
- In 1st Year – Smart mass media Advertising gets you awareness & 90% walk-ins. Surprisingly, testimonials still are the best bet.
- In 2nd year – Response through Advertising dips by at least 50%. Member gets member or referral schemes & cross promotions get the best response.
- In 3rd year & beyond – Most startups close down by this time if they are unable to deliver good results & customer service. Introducing new products & innovative packaging will keep you going strong.
CHOOSING GOOD EMPLOYEES
- Flair for Customer Service, Patience
- Multi-tasking abilities
- Good sense of hygiene
- Pleasing personality
- Should love socializing.
What do we expect?
- Absolute Integrity
- Passion towards the Beauty / Styling Industry
- Willingness to be a Owner cum Manager
- Ability to lead the team
- Good PR skills and Customer Orientation
- Ability to Invest on requirements
- No Knowledge of Beauty Industry