What is Allen Solly Franchise Cost in India?

Allen Solly is one of India’s most popular western-wear brands (part part of the Aditya Birla group’s fashion portfolio). Entrepreneurs who wish to venture into retailing of branded clothing and want to expand their business, it is possible to apply for an Allen Solly franchise or retail partnership could be appealing due to the brand’s strong reputation, its organized supply chains, and mall/high-street assistance from ABFRL. Below, I’ll break down most common models for franchises, the practical cost ranges, ROI goals as well as eligibility requirements and an easy-to-follow application processas well as a planning table that you can use when planning your budget. If I can, I’ve utilized the official ABFRL guidelines and various directories for franchises to give accurate estimates; the final cost estimates are heavily influenced by street, mall or city store size and layout selections.

Why would you want to consider a Allen Solly franchise?

Allen Solly has strong visibility in women’s, men’s and kids’ clothingan effective driver of foot traffic in shopping malls as well as busy high-streets. Allen Solly is a beneficiary of ABFRL’s nationwide purchasing, merchandising, and seasonal marketing assistance that make promotion, stocking and new-collection launches more accessible to franchisees than the independent brands. If you have a quality website and effectively manage your inventory/operations the brand can provide predictable seasonal spikes as well as stable repeat business.

Common franchise or partnership models

1. Unique Single Brand Store (Franchise/Leased Outlet) -Complete Allen Solly store carrying the brand’s complete line of products.
2. Shop-in-Shop/Concessions within the Department Store or Mall with a smaller footprint within the larger retail location.
3. Franchisee and Distributor Multi-Unit (Area Developer) — rights to open multiple stores within an area; more investments, more responsibility.
4. Outlet/Clearance Store Sometimes offered in particular formats for lines that are closing or clearing out (depends on the policy of the brand).

ABFRL could operate various models based on location and city Some franchise portals provide information ABFRL prefers partners with experience in retail and solid web site (mall/high-street) qualifications.

Indicative cost — planning table

The amount of money invested varies depending on the format and city. Below is a consolidated plan table derived from ABFRL’s estimates and directories for multiple franchisestake the following as indicative intervals only.

The ABFRL’s website for leasing and partner services says “investment in the store begins at around. 50 Rs Lakh for an area of 1,000 sq.ft. store” This is an estimate for a brand and the actual figures will differ based on the size and the location. Always request a commercial form from ABFRL for the location you want to locate.

Size of the store and location direction

Franchise directories usually list 800-1500 sq.ft. as the most desirable size for a complete Allen Solly store; mall spots and high-street flags need great accessibility and frontage. Smaller shop-in shops can operate between 300 and 800 sq.ft. however, they will only carry a small range of. If you’re looking for tier-1 malls, plan for higher fit-out and more working capital.

Revenue, margins & ROI expectations

• revenue drivers are: average ticket size (brand premium as opposed to value lines) and footfall (mall over high-street in a number of cities) as well as the season (festive months) and effective promotions.
• Margins: branded apparel gross margins are usually moderate following the brand’s management of pricing. Franchise directories typically indicate retention of franchisees (after the remittances and supply) within the 65-76 percentage range however, models can vary. Verify margins on an commercial paper.
• payback time: directories cite 12 to 36 months in accordance with area and size (metro malls typically require longer to break even due to the higher cost of rent however they can also deliver greater overall turnover). Consider conservative estimates for footfalls in calculating.

Common requirements for eligibility

While ABFRL will provide specifics for each opportunity, the most common requirements for franchises are:

• Evidence of investment capability and ability to supply working capital.
• Retail premises that are suitable (lease at a time or a confirmation of landlord’s willingness) with the dimensions and visibility requirements.
• Experience in retail or as a managing partner with expertise in retail (preferred).
• Normal KYC and business documents (PAN GST, PAN, bank information).
• The ability to commit to the brand’s merchandising strategy, SOPs, and staffing.

Step-by-step instructions on how you can use (practical)

1. Shortlist format and place of residence — select shop-in-shop or full-store; ensure that you have the best possible site or lease information.
2. Contact ABFRL and Allen Solly partnership team team ABFRL has a partner or franchise inquiry Contact form (use their partner/franchise email, or their contact form). Contact them for the most current commercial sheet/lease and partner eligibility criteria.
3. Submit documents and site information including photographs, lease agreement as well as bank references, and a brief business plan.
4. Site inspection and commercial offers -ABFRL will inspect the site and commercial offer – ABFRL will inspect the site, suggest layout and provide commercial terms (fittings and inventory supply, or any advance).
5. Agreement and payments Sign the lease/franchise agreement following legal review; obtain precise timelines for the fit-out of stores as well as inventory supplies.
6. Training and merchandise Brands typically provide staff training, merchandising plansograms and the initial allocation of merchandise.
7. Launch and track KPIs Track sales per sq.ft as well as stock turn-overs and margins by SKU as well as adjust assortments according to local demand.

Practical tips and warnings

• Contact ABFRL for estimated unit costs (sales for each sq.ft. for similar stores) and references to nearby franchisees.
• Check if ABFRL determines the pricing of inventory and the mandatory PO/supply terms, and if any royalty or marketing charges are in place.
• It is essential to have an written outline of fitting-out guidelines (who is responsible for joining, who is the person who approves final fixtures) to prevent surprises.
• The red flags are: huge “verbal” solicitations for unidentified deposits, vague buy-back terms for stock that is not sold in the season or the absence of a clear return or service policy.

The final word

A Allen Solly franchise is a excellent option for entrepreneurs with experience in retail (or an associate in retail) and the ability to access prime property and working capital needed to take on seasonal. A typical investment for a single store typically ranges between Rs40 lakh and Rs1.2 croreor more, depending on the type of store and locationABFRL’s standard starts at 50 lakh for a 1,000 sq.ft. store. But, make sure you have the exact commercial document for your site prior to making a decision to invest.