Business franchising is one of the best ways you can venture into business ownership since it comes with fewer risks. This means that one gets the opportunity to own a business while at the same time enjoying the backing of a well-established brand. 

Vishal Mega Mart is one of the leading retail companies in the Indian market, and it has a promising franchise model. From this article, you will learn about the Vishal Mega Mart franchise model, how much it costs, how much profit it can give, what is required to start it, and the advantages and disadvantages of investing in the Vishal Mega Mart franchise.

Vishal Mega Mart Franchise Model

Vishal Mega Mart follows a supermarket franchise business model. This means you will own and be operating a supermarket under the tested and proven brand of Vishal Mega Mart. Originally established by Ram Chandra Agarwal in 1986, Vishal Mega Mart has become one of the leading retail brands in India, offering relatively low prices and many products.

Key Details of Vishal Mega Mart Franchise

• Brand Name: Vishal Mega Mart
• Founded: 1986 by Ram Chandra Agarwal
• Line of Business: Supermarket
• Number of Outlets: 110 franchise outlets across India
• Setup Time: 2 to 3 months
• Franchise cost: 50 lakhs
• ROI Period: 1 to 2 years
• Space required: 1000 to 3000 sq ft
• Official Website: https://www.vishalmegamart.com/

The franchise model is formulated in such a way that the franchisees are provided with all the necessary support. This comprises inventory management services such as inventory planning, pricing of products, and customer acquisition that help in managing the store and getting customers.

How Much Does a Vishal Mega Mart Franchise Cost?

The cost of establishing a Vishal Mega Mart franchise is high but is inclusive of all essentials that may be required to commence and conduct the store.

Cost Breakdown:

The infrastructure investment includes necessary initial costs like equipment, furniture fixtures, and marketing expenses. The minimum size of a store is 1000 square feet, while the maximum space allowed is 3000 square feet to accommodate a large stock of products.

What You Get?

If you choose to invest in the Vishal Mega Mart franchise, you are provided with a detailed support package with which to establish and operate your store.

Equipment

1. Point of Sale (POS) Systems: Modern cash registers and payment processing systems to ensure smooth and efficient transactions.
2. Refrigeration Units: Particularly relevant for preserving food products, including dairy, meat, and frozen foods.
3. Shelving Units: Shelves that can expand or contract widely to showcase a range of products conveniently.
4. Security Systems: Such measures include installing close-circuit television cameras and security alarms to protect the store and goods.
5. Computers and Networking: Office computers for accounting systems, other clerical uses, and internet access for efficient day-to-day operations.
6. Cleaning Equipment: Small equipment and appliances for cleaning and washing the store and its interior parts.

Furniture and Fixtures

1. Display Racks: Firm and stylish stands where the products can be arranged tidily and conveniently placed to the clients’ reach.
2. Checkout Counters: Clean and properly designed counters for cash registers, POS machines, and packing areas.
3. Lighting Fixtures: Proper lighting for customers to get a better shopping experience and to bring attention to the products.
4. Signage: Directional signs and other signs for the customers with a brand name for brand positioning.
5. Office Furniture: Filled with desks, chairs, and other office furniture to secure the administrative office inside the store.
6. Customer Seating: Seating for customers waiting for a turn or simply resting.

Marketing

1. Brand Signage: Well-designed signage in order to safely capture the attention of the customers and create brand awareness, which is the Vishal Mega Mart logo.
2. Grand Opening Promotion: To create awareness of the store opening and attract the initial clientele, it is crucial to make the initial promotions in the form of flyers, banners, and advertisements in the local media.
3. Social Media Promotion: Advertising on social media to create an online community and advertising the restaurant’s services on the major social media.
4. In-Store Promotions: Specific marketing tools include: · Wall newspapers, subway posters, banners, and shelf talkers, which alert customers to special offers and promotions within the store.
5. Loyalty Programs: Equipment and items to offer clients incentives, rewards, and freebies to make return visits to the business.

How Profitable Is a Vishal Mega Mart Franchise?

Perhaps the most enticing feature of partnering with the Vishal Mega Mart franchise is the profitability of the business. Of all the models of legal structures, revenue sharing is deemed most suitable for franchisees.

Revenue Sharing:

• Franchisee: 90%
• Franchisor: 10%

This means that, indeed, being a franchisee, you stand to benefit from 90 % of the total income earned by your store which is relatively higher compared to many other franchising arrangements.

Return on Investment (ROI):

• Timeframe: 1 – 2 Years
• Ratings: 4.40 out of 5 for ROI

Most executives reported that they could make back their initial investment in 1 to 2 years, depending on how well the store is handled and how much the owner complies with the brand’s guidelines. Because of this, it returns investment in a short time and hence is a good option for investors.

Requirements to Get a Franchise

Before opening a Vishal Mega Mart franchise, you must meet several requirements. These requirements ensure that the franchisee is prepared to operate the business successfully.

Space and Infrastructure

• Shop Area: 1000-3000 Sq.ft
• Employee Headcount: 15 to 20
• Facilities: Parking, billing counters, product display areas, air conditioning, CCTV setup, and computer/internet connectivity are compulsory.

Documentation Needed

• Franchise Agreement
• Proprietor Photo
• Proprietor Aadhaar Copy
• Business TAN Copy
• Proprietor/Business PAN Copy
• Proprietor/Business Address Proof
• GST Registration Certificate
• NOC of Unit/Shop
• Unit/Shop Address Proof

These requirements ensure you have the necessary space, infrastructure, and legal documentation to operate the franchise smoothly.

How to Get a Franchise?

Getting a franchise is not difficult, and the following steps highlight how it can be done:

Steps to Apply

The procedure for applying for a Vishal Mega Mart franchise is as smooth as possible because Vishal Mega Mart wants prospective franchisees to feel comfortable and start franchising as soon as possible.

1. Visit the Website: Visit the Vishal Mega Mart website or speak to the franchisor.
2. Fill Out the Application: Fill in the form with your name, address, business information, etc.
3. Submit Documents: Ensure that you submit all the necessary documents mentioned above.
4. Review and Approval: Your application will be evaluated by the franchise team, and you will be informed of it further.
5. Training and Setup: After submitting your application, you will get instructions on opening the store and the company’s support.

The training and support offered by the company are, beyond any doubt, guaranteeing that you are fully equipped for efficient business.

Is Owning a Vishal Mega Mart Franchise Right for You?

Like any other business deal, the  Vishal Mega Mart franchise has strengths and weaknesses. To achieve this, we will review the Vishal Mega Mart franchise model and provide the business’s strengths and weaknesses.

Pros

• Established Brand: Vishal Mega Mart is a familiar and reliable brand in India and can attract many customers.
• High Revenue Share: 90% of the resultant revenue belongs to the franchisee to guarantee profitability.
• Comprehensive Support: The company assists greatly in managing the inventory, setting product prices, and marketing products to the market.
• Quick ROI: The money can be earned back within one to two years, thus making it financially viable.
• Diverse Product Range: The store sells almost everything, such as food, clothes, electronics, and even fitness centers, and thus, it can capture the market from all classes.

Cons

• Initial Investment: The suggested investment of 30 lakhs to 50 lakhs could be considered too expensive for some potential franchises.
• Operational Requirements: Operating a store measuring 1000-3000 Sq. ft, and managing 15 to 20 employees can be tiresome.
• Partial Marketing Support: The current marketing support is moderate, though digital and television advertisements are available only sometimes, which makes the franchisee carry the local marketing buck.

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Final Words

In Conclusion, Is Owning a Vishal Mega Mart Franchise Right for You in 2024? The Vishal Mega Mart franchise is viable if one can invest a substantial amount of capital and is willing to undertake the operations required for a franchisee.  With its strong brand presence, high revenue-sharing model, and comprehensive support, the potential for profitability is significant. However, it’s essential to consider the initial investment and the requirements needed to run the store effectively.

Overall, Vishal Mega Mart offers a promising franchise opportunity for those looking to enter the retail sector and achieve quick returns on their investment. If you meet the requirements and are willing to put in the effort, a Vishal Mega Mart franchise could be a profitable and rewarding business venture.

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