Are you thinking of starting a business that is always profitable and never fails Industry the garment sector? , Seeking top clothing brands to invest in? Look no further. Arvind Menswear brought all brands together and is a well-known and top brand in men’s clothing, offering franchise opportunities for people who want to kick-start their businesses. Arvind Store Franchise Cost, Profit, & How to Open? In 2024 we will discuss Arvind Brand, What is the investment? What is the profit margin? What are the requirements? How to get a franchise for the Arvind store? and Arvind store franchise pros and cons.
Table of Contents
About Arvind Store
Arvind Ltd. was established by Lalbahi Group, headquartered in Ahmedabad, Gujarat. It is known as the Indian largest denim manufacturer and the second-largest denim producer and exporter.
Arvind manufactures a wide range of lifestyle products in cotton shirting, knits, and bottom-weight (khakis) fabrics. Along with Arvind brands, we license other international brands such as Arrow, US Polo Association, and Tommy Hilfiger through our nationwide retail network. It also runs a value retail chain, Megamart, which sells various popular brands.
Currently, Arvind Store has 13,000 standalone stores and 5,000 multi-brand departmental stores in 192 cities in India. You can be the next Arvind’s store franchise owner if you follow the information we are providing.
Key Details of Arvind Store Franchise
- Brand Name: Arvind Store
- Industry: Textile manufacturer
- Number of Outlets: 130+ franchise outlets
- Franchise cost: 1 crore
- Profit Margin: 40%
- Space required: 700 to 1500 sq ft
- Franchise Agreement: 5 years
- Official Website: https://www.thearvindstore.com/
How Much Does It Cost to Open an Arvind Store Franchise?
Total Investment: To open an Arvind Store franchise costs 1 crore, including the franchise fee, initial inventory, store setup cost, miscellaneous costs, working capital, and others.
Franchise Fee: The applicant needs to pay the franchise fee of 5 to 20 lakhs to the brand to acquire the rights to open franchise outlets with a brand name and operate franchise outlets under brand support.
Estimated store setup cost: Set up an Arvind store franchise outlet, requires 20 to 25 lakh, including interior and exterior design.
Initial Inventory: The franchisee needs to purchase the first stock to run the franchise outlet. It costs around 30 to 40 lakh. You may need to purchase 2 to 3 months of stock as initial inventory.
Royalty Fee: The franchisee needs to pay 3% to 5% of the total revenue per month as royalty fees for branding, marketing, advertising fees, and ongoing support.
Miscellaneous cost: The franchisee needs to allocate 5 to 10 lakh as miscellaneous costs, including employee salaries and others.
Working Capital: You need to have 25 to 30 lakh as working capital for day-to-day operations until franchise outlets start making a profit.
Franchise Agreement: Once you sign the franchise agreement, you will be operating franchise outlets under brand support for up to 5 years. This agreement is renewable.
| Franchise Fee | 5 to 20 lakh |
| Estimated Store setup cost | 20 to 25 lakh |
| Initial Inventory | 30 to 40 lakh |
| Royalty Fee | 3% to 5% |
| Miscellaneous cost | 5 to 10 lakh |
| Working Capital | 25 to 30 lakh |
| Franchise Agreement | 5 years |
| Total Investment | 1 Crore |
Is Investing in an Arvind Store Franchise Profitable?
Revenue per month: Aravind store brands ensure each franchise outlet can easily make 15 to 20 lakhs of rupees in revenue per month.
Gross Profit Margin: A franchisee of Arvind Store can expect a gross profit margin of 40% on each sale.
Return on Investment Period: Arvind Store assures With a 40% gross profit margin, the franchisee can recover the initial investment within 3 years.
Investing in an Arvind Store franchise is considered a profitable choice for entrepreneurs with a 40% gross profit margin and a 3-year return on investment period.
| Revenue per month | 15 to 20 lakhs |
| Gross Profit Margin | 40% |
| Return on Investment Period | 3 years |
Requirements to Open Arvind Store Franchise
Investment: To be a franchisee of Arvind Store, you need to be financially strong because the initial investment to start an Arvind franchise requires a 1 crore investment.
Business Experience: If you have 2 to 3 years of prior experience in the retail industry, then only the franchise team will consider your request. This franchise opportunity is for people who are financially strong and have prior experience in the retail sector.
Required Space: To setup a franchise outlet in Arvind, it requires a minimum of 700 sq ft and a maximum of 1500 sq ft. A minimum of 18 sq ft front space is necessary.
Location: The franchisee needs to consider high-foot traffic locations like fashion malls and commercial areas, which can earn 15 lakh to 20 lakh in revenue per month.
Required Staff: To operate a franchise outlet, it requires 8 to 12 employees. These employees are hired and trained by the brand.
Required Documents
Franchise Application Form: The franchisee needs to sign a detailed application form provided by Arvind that is filled with personal and financial information.
Personal Identification: The applicant needs to submit copies of their passport, driver’s license, or other government-issued ID for identification purposes.
Business Plan: You need to submit a detailed business plan outlining your strategy for running the franchise, including marketing plans, financial projections, and operational strategies.
GST Registration: Whichever business you may start in India, you need to do GST registration.
Trade License: The franchisee should bring the trade license from the local municipal corporation that permits you to start a business in the chosen store location.
How to get a franchise for the Arvind store?
Visit the official website: Visit the official Arvind Store. Research the details regarding brand history and brand support.
Locate the franchise Enquery: Look for the Franchise Enquery section on the menu bar of the official website. Click on it.
Fill out the Enquiry form: Fill out the inquiry form with your personnel and detailed location information. If possible, mention your work experience.
Submit the form: After filling out the out the form, recheck it for accuracy and submit it.
Wait for the response: If your pre-chosen location and prior experience make it suitable to open an Arvind franchise outlet, The franchise team will contact you within a few days or a few weeks. Be patient until you get a response from the brand.
Is Owning an Arvind Store Franchise Right for You? Pros and Cons Explained!
Pros
Established Brand: Arvind Store is a well-known brand for men’swear. with 130+ franchise outlets and 50,000+ multi-brand outlets, has a presence in 192+ cities in India.
Potential customer base: With the presence of 192+ cities in India, it has a loyal customer base. In whichever city you open a franchise outlet, its brand reputation easily drives high foot traffic to the store.
Support and Training: The Arvind Store provides support in areas like inventory planning, product pricing, interior design, employee training, and ongoing support.
Royalty Fees: The Arvind store brand charges royalty fees of between 3 and 5% of the total revenue. It is considered a comparatively low royalty fee.
Profit Margin: The brand assures franchisees that they can expect a 40% gross profit margin on each sale. This figure may vary based on festival offers.
Cons
High Investment: To open a franchise of Arvind Store, franchisees need to have a minimum investment of Rs. 60 lakh. You may need another 10 to 20 lakh of working capital to run the store.
Previous Experience: If the applicant doesn’t have prior experience in retail or another sector, He or she may not be eligible to get a franchise opportunity.
Specified Location: To open a franchise outlet according to Arvinds guidelines, the location should be in a high-traffic area like a shopping mall or market area.
Required Area: Getting 700 to 1500 sq ft of area in malls or markets is crucial, with a minimum 18 feet of front space.
Owning an Arvind Store franchise is a profitable business for people who can afford 1 crore and have previous experience in business. This business is not meant for people who aspire to start their first business.
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Conclusion
In Conclusion, Arvind Store Franchise Cost, Profit, and How to Open? In 2024, Arvind Store will be the finest franchise opportunity with an established brand, benefit from revenue sharing, and receive support and training, a royalty fee, and a profit margin. But you also need to consider competition for a clothing business in your chosen location, a high initial investment, and the applicant’s prior retail experience.
FAQ
How much does the Arvind store franchise cost?
To open an Arvind store franchise requires a 1 crore investment, including the franchise fee, initial inventory, working capital, setup cost, and others.
What is the profit margin of the Arvind Stores franchise?
Franchisees of Arvind Stores can expect a gross profit margin of 40% on each sale.
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