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Franchisee in Mall

By Prayag Potnis on 6 Comments / 1777 views

Hi Guys,

So i am aware may be this is not the place to ask a general business question but rather more of a forum for entrepreneurial questions. But still i ..  poochoge nahi tou jhingala kaise hoga ..right?

So i am looking to get a franchisee of a clothing brand and start the shop same in a mall. I need inputs on success rate, reasons for failure, sustainability, what kind of research needs to be done etc. All inputs are welcome.

Regards,

Prayag

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6 Comments

  1. Even I would be interested in this info.

     

  2. Footfalls: The first factor for success for opening a shop in a mall. Even if all other aspects (like rent of shop, location, size of store) are great but if the mall does not have good footfalls, all your efforts are only wasted

    Location in the mall: the second important criteria for success. Who are your neighbors, are you located near to the entrance or in some extreme corner, is your shop near food court or play area.

    Rent: Most of the time what you earn only goes in paying rent. This is fine for the first year or so, but later you need to ensure of making money from it.

    There are many other factors to go with, but this 3 to me are the most crucial from mall perspective to determine your success or failure. 

  3. This is good advice. Thanks a lot.

    Would be great if you can tell us the most common mistakes that franchisees commit while setting up a franchise stores.

    I am really very interested in retailing, specifically apparel retailing and would like to start something of my own in future.

    Thanks.

  4. Hi Abhishek,

    Thanks for the detailed inputs, it surely shows your past experience. Can’t tell you how happy i am to get some genuine advice.

    As you have provided such an in-depth information would like to trouble you a bit more 🙂 , just a few more questions,

    1. I have heard of the Malls asking for MG/Revenue share as part of rent now days but do Brands give MG to franchisee?

    2. The brand tells me it has X number of franchisee already in my city and each of it does Min Y business annually. So still i shall use in the 50% formula you suggested?

    3. Is it almost always true that shops in a mall takes around a year to pick up business?

    4. Any pointer on what should be the percent i spend on rent of my net profit after taxes?

    5. What is the average profit margin in clothing franchisees? Here i just wanna compare that my Brand is giving me a good offer.

    6. Do Brands negotiate on the profit percentage or it is same for all Franchisees?

    Best Regards,

    Prayag Potnis

  5. Hi Hozefa,

    Really appreciate your inputs and efforts.

    Regards,

    Prayag

  6. Hey Abhishek,

    Once again thanks a lot for your crucial inputs, really appreciate it.

    Regards,

    Prayag

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