The initial set up cost for the store would be around `15-35 Lac including the cost of setting up the facility with the working capital requirement for the initial period of business operations. The exact investment would vary from store to store depending on various factors such as store size, rental/self owned etc
How long does it take to open a ADK Franchise?
After signing the formal agreement it normally takes 1-2 months to set up and tart entire operations.
When will I break even?
The break-even point varies from centre to centre as it depends on a variety of factors such as sales, overheads, operating cost and business performance. However, the USP of this business is its fast pay-back period and the quick break-even point.
Where are you selling franchises?
Although we have a pan India presence, we are currently emphasizing on tier-II and other modest locations where there’s untapped potential.
Do I need to be from an apparel background to be accepted as a franchisee?
Prior experience in the retail/apparel industry would be desirable, but not mandatory. Our franchise program is designed in such a manner that it assists a new franchisee in all areas of operations.
Do I need to have my own Real Estate?
Having your own real estate would be advantageous; however you can also set up the store at long lease rental projects. If not, we can also help you find a suitable location for your exclusive showroom.
How does the company deal with left over stock?
The issue of left over stock rarely arises. We advise all our franchises to not keep stock beyond 3-4 months of projected business. Moreover, we supply only our best sellers and core articles.
What are the risk factors?
Risk is only in the selection of an ideal location, therefore we advise our prospective franchises to be cautious while deciding the same. Like any retail business, the location plays a major factor in determining the successful running of an organization and keeping the business profitable.
Will the company share rental expenses?
The franchise has to be very careful in selecting an optimal location which will keep rentals low. The company does not share the rental cost as such but the margins provided by the company are good enough to cover rental expenses.
Does the company give any credit limit to support and run the business?
Instead of offering a credit limit, we encourage a cash discount of 5% for a more profi¬table business. Wherever credit limit is a major concern, we follow the standard trade practice. Not on the ¬rest purchase, but on subsequent purchases, the company can support you up to 10% of your projected business.
What is the term of the franchise agreement?
The initial agreement is for 5 years with an option of renewing it further. Renewal of the agreement is subject to mutual agreement of both the parties.
Do you provide any business aids?
Yes, we do. We will help you with designing of the outlet, ¬t outs, equipment sourcing at the best possible price, production, staff recruitment (if required), extensive training programs by the ADK management and various marketing programs to help you with day to day business operations.
How will advertising be handled?
The marketing program is devised such that the company will do the National level marketing activities focusing on brand awareness and development. However, local advertisements and promotions shall be carried out by the franchisee with support and inputs from the management.