Industry OverviewThe hair and beauty salon industry in India has been estimated at6,900 Crore up from 1,500 crore in 2005. It is expected to reach29,800 Crore in 2015 and surge to 98,500 crore by 2020. 77% 23%
Beauty Salon Opportunity Emerging Industry Grooming –a necessity Cash & carry High margin High Loyalty - Repetitive BusinessHair keeps growing and so does your Business!
Why Franchising? You‟re buying into an idea that‟s already proven to be successful The management of the business has already been formulated The support network is already in place Your chances at receiving business financing are greatly improved Your company has a “Brand Name”Franchised businesses have a 90% success rate within 5 years of openingwhile Non-franchised businesses have only a 23% success rate within theirfirst 5 years
Why WTF ?Fastest growing salon chain in IndiaEstablished brand imageAccumulated knowledge on businessCorporate image and supportUnisex ModelAffordable PricingTraining, Re-training and continuous HR managementSmart promotions and brand building exerciseLesser Risk – Security for InvestmentContinuous operational support and guidance
What do we expect?Absolute IntegrityPassion towards the Beauty / Styling IndustryWillingness to be a Owner cum ManagerAbility to lead the teamGood PR skills and Customer OrientationAbility to Invest on requirementsNo Knowledge of Beauty Industry
Supports ProvidedSite selectionArchitect and layout finalizingProject HandholdingStaff RecruitmentFranchisee Induction & TrainingBest deals from approved vendorsPre launch promotionsOn going staff trainingStaff Assessment & appraisal processPromotions & Brand buildingIntroduction of new services and products
Illustration - Investment Summary Total Investment 35-50 lacs Salon Size (sq ft) 200 - 2000 Breakup: Franchise Fee 3L Main Signage and POS software 1L All the mentioned Staff Recruitment & Training facilitation 1L figures are indicative and Launch Marketing Expense 1L can vary Architect Fee 0.65 L* Rental Advance on Actual Investment in Interiors Rs. 1250 per sft. Air Conditioners 3L Investment in Equipment 3L Investment in Products 2L Gadgets 1L Towels & Uniforms 1L Computer , Music 1L Generator 3L Others 1L*Architect site visit expenses on actual
Royalty18% Royalty collected on Service Revenue net of Taxes1% Royalty collected on Product SaleFirst 3 months Service Royalty calculated at 8%Month 4 to 6 Service Royalty Calculated at 13%18% Royalty comes into effect from Month 7 onwardsRoyalty calculated and collected on a Daily BasisRoyalty consolidation – Month EndRoyalty collected through Auto Debit System – Axis BankFranchisee to open Current A/c with Axis Bank