Franchising Overview

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

This business is not about big setup, fancy equipment’s & big Ad budget only. Then what’s the MANTRA; Good results & customer care which comes through:-

  • 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