Are you looking to start an ever-green, profitable business? The garment sector and food sector businesses are considered evergreen businesses. Here we will discuss one of the trending brands in the garment industry, Raymond, which provides franchise opportunities for businessmen dreaming of being part of top brands. How profitable is a Raymond franchise business? In 2024, we will discuss complete details from About Raymond. What is the investment to get a franchise? What is the profit margin, what are the requirements, and how do I apply for a franchise? and Raymond franchise pros and cons.
Table of Contents
About Raymond
Raymond is the fastest-growing fashion fabric brand, established as Woolen Mill in 1925 near Thane Creek. Gautam Vijaypat Singhania is the chairman and managing director of Raymond. Its manufacturing products are suits, formal blazers, jackets, formal trousers, pieces of denim, shirts, and others.
Raymond exports to 55+ countries and has stores in different locations. It established 1500+ stores in 600+ cities. It has already grown; the biggest brand has reached almost every city in India. With a franchise model, the brand aims to establish more stores in every city. You can be the next business partner of Raymond by following the given details.
Key Details of Raymond Franchise
- Brand Name: Raymond
- Industry: Textile
- Number of Outlets: 1500+
- Franchise cost: 50 lakhs
- Gross Profit Margin: 80%
- Space required: 600 to 1500 sq ft
- Franchise Agreement: 5 years
- Official Website: https://www.raymond.in/
How Much Does It Cost to Open a Raymond Franchise?
Franchise Fee: Raymond charges franchise fees between 6 lakh and 10 lakh plus GST to the franchisee. For the right to open a franchise outlet with a brand name and operate a store with brand support.
Estimated setup cost: To set up a franchise outlet, it requires an investment of between 10 and 15 lahks. This cost varies based on the size of the outlet.
Initial stock: The franchisee needs to purchase the initial stock from the brand; this is a 4-month advance stock that requires an investment between Rs 25 and Rs 30 lakh.
Royalty Fee: Raymond charges a royalty fee for the franchisee. This franchise fee varies from 15 to 20% of the monthly sales. This fee is for branding, marketing, advertising, and ongoing support.
Working Capital: The franchisee needs to allocate a minimum of 10 lakhs in investment to cover day-to-day operations and employee salaries.
Franchise Agreement: Initially, the Raymond franchise agreement period is for 5 years, based on the performance of the franchise outlet, it may increase the time period.
Total Investment: To open a Raymond franchise costs approximately 50 lakhs. It varies based on the location and size of the outlet. This cost includes the franchise fee, working capital, setup cost, initial stock, and others.
| Franchise Fee | 6 to 10 plus GST |
| Estimated setup cost | 10 to 15 lakh |
| Initial Inventory | 25 to 30 lakh |
| Royalty Fee | 15 to 20% |
| Working Capital | 10 lakh |
| Franchise Agreement | 5 years |
| Total Investment | 50 lakh |
How Profitable is a Raymond Franchise Business?
Let’s discuss how profitable a Raymond franchise business is.
Revenue Per Month: Each store of Raymonds can make revenue between 5 and 10 lakhs per month with its brand reputation on normal days. This revenue may increase up to five times during the festive weeks.
Gross Profit Margin: The brand charges a maximum 20% royalty on revenue. 80% of the revenue will be your gross profit margin. It includes store rent, employee salary, current bill, etc. The net profit margin will be based on the franchise store’s operational efficiency.
Return on Investment Period: According to brand Raymond, franchisees require between 2 and 4 years to recover the initial investment.
| Revenue Per Month | 5 lakh to 10 lakh |
| Gross Profit Margin | 80% |
| Return on Investment Period | 2 to 4 years |
Requirements to Open Raymond Franchise
Age and Qualification: To be a franchisee of Raymond, you need to be at least 23 years old, and a PUC or degree qualification is necessary.
Financial Stability: The franchisee needs to be financially strong and ready to invest between 50 lakhs and 60 lakhs.
Business Experience: The applicant must have 2 to 3 years of previous experience in the retail sector and good knowledge of the retail market.
Required Area: To open a franchise of Raymond, it requires at least 600 square feet and a front space of 20 square feet. Maximum between 1000 and 1500 sq ft.
Location: You can open Raymond franchises in high-foot-traffic areas with metropolises or commercial locations. The brand prefers shopping malls and commercial areas.
Required Staff: To run a Raymond franchise, it requires 4 to 10 employees.
License: To open a franchise, you need a trade license, shop and establishment registration, GST registration, and fire and safety.
How do you apply for the Raymond franchise?
Visit the official website: Visit the official website of Raymond to gather details related to franchises and brand history.
Locate Partner With Us section: Look for the Partner with Us section on the menu bar click on it leads you to the franchise details and the franchise query form.
Fill the Franchise application form: Fill the franchise application form with your personnel details and Franchise query.
Submit the form: Double-check the application form for the correct details and submit it.
Wait for the response: The franchise team will review the application and it will contact you in few days.
Raymond Franchise Pros and Cons
Pros
Brand Reputation: The fastest-growing fabric brand exports to 55+ countries. With decades of experience in the textile industry, we manufacture and retail attractive clothes based on people’s interests. It gained a hugely loyal customer base. Franchisees will benefit from the customer base.
Wide Variety: It manufactures and exports a wide variety of clothes like suits, formal blazers, jackets, formal trousers, pieces of denim, shirts, and others.
Training and ongoing support: Raymond provides training to the employees and also provides support while selecting a location for the franchise, the blueprint of the store, and ongoing support for 5 years.
Gross profit margin: The franchisee doesn’t charge any share of the revenue, except for royalty fees. So franchisees can expect an 80% profit margin on the total sales.
Cons
High initial investment: The franchisee needs to invest a minimum of 50 lakhs as an initial investment, with a franchise fee of 6 to 10 lakhs plus GST.
Royalty Fees: It charges around a 15–20% royalty fee, which is huge compared to other brands.
The difficulty of getting a franchise: Raymond has a presence in almost every city in India. Also, to get a franchise brand, there are many conditions.
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Conclusion
In conclusion, How profitable is a Raymond franchise business? In 2024, the Raymond franchise will be a profitable opportunity with an 80% gross profit margin and a 2–4 year return on investment period. Raymond provides complete training to employees and ongoing support. But this franchise opportunity is for people who are financially strong and have 2 to 3 years of experience in the retail sector.
FAQ
How much does the Raymond franchise cost?
To start a Raymond franchise requires 50 lakhs. It includes franchise fees, setup costs, initial stock, working capital, and others.
What is the gross profit margin of the Raymond franchise?
As a franchisee of Raymond, you can expect a gross profit margin of 80% on the total revenue.
