Are you looking for one of the branded clothing businesses to start your business with a medium investment? Look no further Fabindia is offering franchise opportunities for aspiring, financially strong entrepreneurs. Fabindia Franchise Cost, Profit, and How to Get a Franchise in 2024. In this, we will discuss complete details about Brand Fabindia, including how much investment is needed, what is the profit margin, what are the requirements, and how to get a franchise of FabIndia and Fabindia franchise pros and cons.
Table of Contents
About FabIndia
Fabindia is an Indian retail chain business in garments. Established in 1960 by John Bissell. It manufactures products in garments, home decor, furnishings, fabrics, and other products handmade by craftspeople across rural India.
Fabindia is India’s biggest manufacturing brand, its products are made from traditional techniques, skills, and hand-based processes. It links more than 55,000 rural and modern producers. Fabindia ensures its products are natural, craft-based, contemporary, and affordable for customers.
Fabindia offers a wide range of products in clothing, accessories, home furnishing, beauty products, and organic foods. Along with stores, it also sells products through online shopping on its own sites, where customers can explore and purchase the products.
Currently, Fabindia has established more than 400 stores in 127+ cities in India and 13+ international outlets in 7 countries.
Key Details of Fabindia Franchise
- Brand Name: Fabindia
- Industry: Textiles, home furnishings, handloom apparel, jewelry
- Number of Outlets: 400+
- Franchise cost: 80 lakh to 1 crore
- Profit Margin: 25 to 30%
- Space required: 1000 to 1500 sq ft
- Franchise Agreement: 3 to 5 years
- Official Website: https://www.fabindia.com/
How Much Does It Cost to Open a Fabindia Franchise?
Franchise Fee: To acquire the rights to open Fabindia stores and operate stores under brand support, the franchisee needs to pay a non-refundable 3 lakh franchise fee.
Estimated setup cost: The brand charges Rs 2000 for each sq ft for exterior and interior design for a 1000 to 1500 sq ft area, which requires a 20 to 25 lakh investment.
Stock investment: The franchisee needs to buy four months of stock as the initial inventory requires 25 to 50 lakh as an initial stock investment.
Royalty Fee: Fabindia does not charge a royalty fee for branding, marketing, advertising, or ongoing support for the franchisee.
Working Capital: The franchisee needs to allocate 25 to 30 lakhs as working capital for day-to-day expenses, employee salaries, and other expenses.
Franchise Agreement: Once you sign the franchise agreement, you will be working under brand support for up to 3 to 5 years. A renewable option is available.
Total Investment: The total Fabindia franchise cost is between 80 lakh and 1 crore, including the franchise fee, initial stock, setup costs, working capital, and others. This cost varies based on the location and area you choose.
| Franchise Fee | 3 lakh |
| Estimated setup cost | 20 to 25 lakh |
| Stock investment | 25 to 50 lakh |
| Royalty Fee | Zero |
| Working Capital | 25 to 30 lakh |
| Franchise Agreement | 3 or 5 years |
| Total Investment | 80 lakh to 1 crore |
Is a Fabindia Franchise a Profitable Investment?
Sales per month: Each franchise outlet Fabindia store earns a minimum of 10 lakhs in revenue per month. On festival days, the revenue may reach Rs 5 lakh per day. The revenue depends on the operational efficiency and location of the outlet.
Profit Margin: Fabindia ensures franchisees of the outlet can expect a profit margin of 25 to 30% on net sales.
Return on Investment: Within three years, the franchisee can recover the initial investment. This time period varies depending on the store’s operational efficiency.
| Sales per month | min 10 lakh |
| Profit Margin | 25 to 30% |
| Return on Investment | 3 years |
Requirements to Open Franchise
Age: To be a business partner of Fabindia, applicants must be at least 24 years old.
Qualification: To apply for the franchise of Fabindia, a minimum graduation qualification is required.
Investment: The applicant must be financially strong and ready to invest a minimum of 80 lakh.
Business Experience: The franchisee needs to have 2–3 years of experience in the retail sector or others. Fabindia doesn’t provide franchises for non-experienced people.
Required Space: To set up a franchise outlet of Fabindia, it requires an area between 1000 sq ft and 1500 sq ft.
Location: To open a Fabindia franchise, you must have commercial areas or shopping malls, these areas drive high foot traffic. Fabindia offered franchises where other premium brands had a presence. To get a franchise, you need to have space in other premium brands that exist. The space may be leased or owned.
Required Staff: To operate a franchise store, it requires 5 to 6 employees. Employees need to be trained under Fabindia.
Documents and License: To get a franchise, you need to gather personnel documents like identification proof, address proof, and others. Licenses like a trade license, GST registration, shop and establishment, and fire and safety.
How to Get a Franchise of Fabindia?
Visit the official website: Visit the official website of Fabindia to gather the required details about the brand.
Locate the Franchise Enquiry Form section: Look for the Franchise Inquiry Form section on the official website’s footer bar.
Fill out the application form: Click on the franchise inquiry form section. It leads you to the application form. Fill it out with your personnel details, experience, qualifications, location details, and other premium brand’s presence at the location you have chosen.
Submit the form: After filling out the form, double-check the information you provided. Because the brand prefers a minimum qualification of graduation and previous 2 to 3 years of retail experience, submit it
Wait For the response: The Fabindia franchise team will review your franchise application, and if you are eligible, the franchise team will contact you within a few days or a few weeks.
Is Fabindia the Best Franchise for You? Discover the Pros and Cons
Pros
Strong Brand Recognition: FabIndia is highly recognized and has 400+ stores in 127 cities in India and 13 international outlets in 13 countries. Already having a worldwide presence, gaining customer trust, delivering products online, and a loyal customer base, franchises can benefit from this.
Proven Business Model: As a franchisee of Fabindia, you will be having access to the proven business franchise model that has already operated more than 400 outlets successfully.
Variety of Products: FabIndia offers products in all categories like clothing, accessories, home furnishing, beauty products, and organic foods. These many varieties attract all ages customers. So franchisees can easily make 10 to 15 lakhs of rupees per month.
Training and ongoing support: If the franchise outlet fails to reach the predicted target of revenue, the Fabindia team will train the employees, help the franchisee make stores profitable, and provide ongoing support. Fabindia claims not a single outlet closed because it failed to make a business.
No Royalty Fee: Fabindia doesn’t charge any royalty fee for branding, marketing, or ongoing support.
Profit margin: The franchisee can recover the initial investment within 3 years with a profit margin of 25 to 30% on net sales.
Cons
High initial investment: To open a franchise of Fabindia, it requires an investment between 80 lakhs and 1 crore. Everyone can’t afford this investment. But if you invest in this franchise, the success rate is 100%.
Location-Based: This business is profitable in metro cities. Only fashion malls and commercial areas are suitable.
Hard to get a franchise: Fabindia stores have a presence in almost all cities in India, with around 400+ stores. Also, to get the franchise, you need to have graduated and have previous experience in the retail sector.
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Conclusion
In conclusion, Fabindia Franchise Cost, Profit, and How to Get a Franchise in 2024: Fabindia is a 100% successful franchise opportunity for people who are financially strong, can afford a Rs 1 crore investment, have previous business experience, and have the qualification of graduation. With Fabindia’s zero royalty fees, comprehensive training, a blueprint for a franchise outlet, a 25–30% profit margin on net sales, and ongoing support, this makes it the perfect business choice to invest in. But it also has a few drawbacks. Finding a suitable location with low competition and high footfall is crucial.
FAQ
What does the Fabindia franchise cost?
Opening a Fabindia franchise costs between 80 lakhs and 1 crore. It includes franchisee fees, setup costs, working capital, and others.
What is the profit margin of the Fabindia franchise?
As a franchisee of Fabindia, you can expect a profit margin of between 25 and 30% on net sales.
How much area is required to set up a Fabindia franchise?
To set up a Fabindia franchise, it requires space ranging from 1000 to 1500 square feet.
