How to Start Pantaloons Franchise Store?
How to Open Pantaloons Franchise
Pantaloons Franchise Store – If you are looking for an assured income business I would suggest staring a franchise of a reputed company. Starting a Pantaloons Franchise will be a best option if it’s not available in your city. It is so because it is a world-class brand and deal with many popular brands in the fashion industry. By opening the franchise you will be able to sell wide range of brands.
No doubt, the business would offer you lucrative returns every month without much risk. You should no doubt that within six months you will have your own established business.
Many people don’t know that Pantaloons is a division of Aditya Birla Fashion and Retail Ltd which is a reputed brand in the fashion industry and listed on Indian stock market. The network of Pantaloons stores is present all over the country. It has got over 370+ stores in different part of the country.
Big Brand and Trending Business
Aditya Birla group is big name in Indian market and industry. This group is doing business in 14 industry sectors and they have achieved global and national leadership with several businesses like nitrogen gas plant.
The leading fashion brand has created a unique brand identity by offering trendy merchandise. The store has created a great ambience for customers with unique design and quality service. The leading fashion brand personifies qualities such as expressiveness, energy and freedom.
The brand is able to speak to the millennial population. This generation is very fond of trendy clothes. However, the stores also ensures that the youngsters experience excitement and friendliness. And, the clothes make them look cool and trendy.
Pantaloons showrooms houses brands for women, men, and kids. In this article, I will discuss the entire process for getting Pantaloons franchise store including investment, commission, application process and the required documents.
Brief introduction about my expertise, I completed my MBA (retail) from a leading management institute. I got campus placement at one of the leading oxygen gas plant manufacturing companies. At this company I learned the basics of branding, marketing, and retailing.
After 5 years, I joined one of the top 10 retail companies where I attained expertise in fashion and FMGC products. After 20 years, I left to start my work as a consultant advising entrepreneurs setting up their business.
Why to Choose Pantaloons Franchise Business Opportunities?
There are number of reasons for choosing Pantaloons franchise. Firstly, it offers an opportunity to work with them through a franchise model. Secondly, the most important reason is that it is backed by Aditya Birla Group, one of the most solid businesses in India.
Entrepreneurs with an existing business have great chance of earning additional monthly income. It is also a great business for individuals with experience in retail and capacity to invest. The company offers excellent support for operational and sales support to the franchisee owners.
Eligibility Criteria for the Pantaloons Franchise
Aditya Birla Group has set up an eligibility criteria for awarding the franchise to the individuals fulfilling the following qualifications.
- Must have 10,000 sq. ft. – 15000 sq. ft. space in a prime commercial area
- Experience of working in retail industry
- Excellent financial background
- Good business skills
Documents & License
The application process needs you to submit genuine self-attested documents and licenses which are given below:
- ID Proof: Aadhaar & Voter ID Card, Pan Card
- Address proof: Ration card, electricity bill
- Photograph, Phone number, Email ID
- GST Registration certificate
- NOC of unit/shop
- Unit/shop address proof
- Franchise agreement
- Trade Certificate
- Trade License
- EPF & ESIC Registration
After you have become a Pantaloons franchise owner you have to fulfill certain responsibilities assigned by the company. Following are the most important responsibilities:
- Capital expenditure
- Store rent
Space Requirements for the Pantaloons Franchise
There are definite space requirements for getting the franchise. Then, it is also imperative that you open the store in a commercial area such as a mall or a high-footfall area. It is to ensure that store is in a highly accessible zone.
Pantaloons Franchise Investment
Investment in the franchise needs you to have sufficient capital or you must have adequate assets that are easily convertible into cash. For starting the franchise fashion showroom, you must have the ability to invest a minimum of INR 3 crore around.
Breakdown of Investment
- INR 2 crore for developing 10,000 sq. ft. (Company charges INR 1800 per sq. ft. which includes interiors, software, setup, etc).
- One time Franchise Fee= Rs 25 Lac (10-year franchise agreement)
- Security Deposit for Inventory (Refundable) =Rs 1 crore – Rs 1.25 Crore
- Refundable Security Deposit (If Space Area is Rented) = Rs 40 Lakh (flexible)
- Total Investment = 3 Crore – 3.5 Crore (as per Actual)
Note: The actual investment might differ as per the location and the city.
The company ensures that its franchise owners earn decent profits month after month. However, it is certainly possible for you to make more profits by generating extra sales. Revenue sharing breakdown is given below:
- Company will provide 18% – 20% on Net Sales
- If Average sales per day is = 1 Lakh
- If we consider monthly sales is 30 Lakh
- Revenue Share is 18% – 20%, then 30 Lakh X 20%
- Franchise Income per month = 6 Lakh
- Annually, Franchise income is = 6 lakh x 12 (months) =72 Lakh
- Electricity Bill = 100000 monthly
- Annually electricity bill= 12 Lakh
- Franchise Income= 60 Lakh
- ROI 1st year
- Year against Investment
- Franchise Investment is 3.5 Crore
- Franchise 1st year Income= 60 Lakh i.e., ROI 1st Year is 18% (Average)
It is certain that the company provides all types of support for the smooth functioning of your store. The company ensures every franchise is able to work at their best level and strives to achieve high revenue targets.
- Marketing material and expenses borne by company.
- Training and hiring managed by company
- Company provides store management
- Daily operations managed by company
- Product knowledge
- Period training for updating on the product portfolio