The global market of serum has expanded primarily because people are getting more conscious when it comes to skincare and beauty products. The business opportunity of investing in a serum franchise in the year 2024 is good for business. In this article, the reader will find all the necessary information about the costs, profitability, and other characteristics of the serum franchise.
Table of Contents
About the Serum Franchise
Serum brands aim to offer effective skincare products such as anti-aging serums, Vitamin C serums, hydrating serums, and many others. These products come with highly developed formulations to be in line with the modern requirements for skin treatments. The greater part of serum franchises is associated with significant brands, which are actively engaged in the research and development of efficient skincare products.
Key Details of Serum Franchise
- Industry: Beauty and Care
- Number of Outlets: Differently for each brand and type, ranging from 50 to 100+
- Franchise cost:15– 25 lakhs Indian Rupees
- Profit Margin: 25%-35%
- Space required: 200-400 square feet
- Franchise Agreement: 5 years
Serum Franchise: Real Facts About Franchise Ownership
Unique Product Offerings
In serum franchises, people are able to find a wide range of anti-aging solutions for different skin types. These are the antiage serums, hydra serums, lightening serums, and many other serums for the various clients out there.
Raw Material Supply
The franchisors can guarantee that the outlets use high-quality raw materials in the production of the products to enhance the effectiveness of the products on the market as well as their safety. This model of the supply chain also aids in maintaining brand integrity in the market.
Employee Training
Franchisors do offer a lot of support when it comes to staff training for the franchisees. Training includes product content, customer relations, and sales approaches in order to provide effective services.
Cost-Effective Model
Serum franchises are generally capable of having compact business procedures accompanied by minimal need for paperwork or complex organization, which lowers costs.
No Royalty Fees
Most serum franchises have very few requirements for royalty fees therefore the franchisees can keep all the profits without frequent subtractions.
Can You Afford a Franchise of Serum?
Here’s a detailed breakdown of the initial costs involved in starting a serum franchise: Here’s a detailed breakdown of the initial costs involved in starting a serum franchise:
Franchise Fee
The franchise fee is normally decided between ₹5 lakhs to ₹10 lakhs for the brand name, training, and initial business assistance.
Fixed Cost
Furniture, Interior designing, and others are setting up costs that may vary from ₹5 lakhs to ₹8 lakhs.
Initial Stock
Capital used in putting up stock initially like serums and other products ranges from ₹2 lakhs to ₹4 lakhs.
Shop Deposit
An amount of ₹2 lakhs to ₹3 lakhs must be paid as a security deposit depending on the location of the shop and the size of the shop.
Marketing Fee
The marketing fee is generally about ₹1 lakh which goes further for advertising and promotion exercises.
Working Capital
The minimum capital needed to establish the business and spend on daily necessities is between ₹1 lakh to ₹2 lakhs.
Summary of Costs
| Expense | Cost |
| Franchise Fee | ₹5 lakhs + GST |
| Setup Cost | ₹5 to ₹8 lakhs |
| Initial Stock | ₹2 to ₹4 lakhs |
| Shop Deposit | ₹2 to ₹3 lakhs |
| Marketing Fee | ₹1 lakh |
| Working Capital | ₹1 to ₹2 lakhs |
| Total Investment | ₹15 to ₹25 lakhs |
How Profitable Is the Serum Franchise?
Monthly Revenue
A serum franchise can easily earn ₹6 to ₹10 lakhs per month depending on the location of the outlet and customer traffic.
Gross Profit Margin
The gross profit margin in relation to serums and other skin care products is roughly 50%.
Net Profit Margin
The operating margin considering all the operating expenses such as rent, lighting, wages, etc. would be approximately 25%-30% of the net profit margin.
Monthly Earnings
A serum franchise can generate a profit of between ₹1. 5 lakhs to ₹3 lakhs depending on its net profit margin of 25%-30%.
Return on Investment
The set amount of time for return on investment is between 12 and 18 months, a good light for investment.
Summary of Revenue and Profit
| Metric | Amount |
| Revenue Per Month | ₹6 to ₹10 lakhs |
| Gross Profit Margin | 50% |
| Net Profit Margin | 25% to 30% |
| Profit per Month | ₹1.5 to ₹3 lakhs |
| Return on Investment | 12 to 18 months |
Requirements to Open a Franchise
Age and Education
• Age: The applicant should have a minimum age of 21 years.
• Education: Applicant should possess basic educational qualifications.
Financial Stability
• Capital: Capability to spend ₹15 to ₹25 lakhs for initial and business operating expenses.
Business Experience
• No past business experience is necessary as there is an in-depth training program given.
Required Space
• Space: About 200-400 square for the outlet, with a display area and space for storage.
Location
• Areas such as malls, high streets, near beauty salons, and other business hubs.
Required Staff
• 2 to 3 employees given initial product knowledge and sales training by the franchisor.
Required Documents
To apply for a serum franchise, you need to submit the following documents
- Franchise Application Form
- Business Plan
- Identification Proof
- Address Proof
- Legal Documentation
- Franchise Agreement
- GST Registration
- Shop Act and Trade Licence
How do I get a franchise of Serum?
Steps to Apply
1. Visit the official website: GlowSerum Official Websitehttps://www.greatbrand.com/domain/glowserum.com
2. To apply for a franchise, download the Franchise Application Form and complete it with your information.
3. Submit the required documents.
4. If there are any questions, feel free to contact the franchise team.
Once your application has been processed, the team will get in touch with you within the next few days.
Serum Franchise: Pros and Cons
Pros
- Established Brand: They are specialized in the production of good quality skincare products.
- Variety: A large variety of serums is present for problematic skin.
- Consistency: This creates high standards of quality and efficacy in the provision of services as well as in the products themselves.
- No Royalty Fees: In a franchise, your profits are fully yours since there is no interference of the franchisor company in operations.
- Training and Support: Training programs relating to franchisees and all the workers of the organization.
Cons
- Competition: In today’s world, the market for skincare is very much vast and aggressive as well.
- Initial Investment: In order to facilitate such a system, a considerable amount of capital is usually needed at the start.
- Location Dependent: Success is very sensitive to the outlet location.
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Conclusion
Purchasing a serum franchise is a good prospect for beginning businessmen as the necessity of skin care products is present in high demand. Thus, with a reputable brand, a range of efficient products, and a significant amount of support, a serum franchise holds much room for development. Despite the rather high cost of investment at the initial stages, it is one that guarantees profitability and support hence being a rather sound business venture.
FAQ
What capital is required to start a serum franchise?
Franchise costs, initial investments, initial inventory, shop deposit, marketing charges, and preliminary working capital amount to ₹ 15 to ₹ 25 lakhs.
Is the serum franchise business earning a profit?
Yes, it is a highly profitable business with an estimated monthly earnings of ₹ 6 lacs to ₹ 10 lacs & net profit margin of 25% to 30%. The return on investment is within the time frame of one year to one and a half years.
