How To Start Zudio Franchise in India – Complete Guide – Earn Money From Zudio

Zudio, a prominent fashion store, is part of the prestigious Tata group and has carved out a unique identity in the Indian market through its online shopping website and physical stores. With its headquarters in Mumbai, Maharashtra. Zudio Fashion Store, introduced by the Tata group in 2015, quickly won the hearts of people for almost every age group especially for kids, teens, grownups and adults.

The store caters to the needs of both children and adults, offering a diverse range of products, including clothing, footwear, Makeup, and various fashion accessories. Despite facing inflation challenges, Zudio remains committed to providing its products at highly reasonable prices, making it a preferred shopping destination for most of the buyers.

Introduction About Zudio Franchise

In 2017, Zudio launched its franchise distribution program, following the trend of major companies expanding their reach. This initiative has led to the establishment of over 1500 outlets across the country, making venturing into business with Zudio an undoubtedly profitable prospect.

Investment Requirements for Zudio Franchise

    Investment Range: The initial investment to start a Zudio franchise falls within the range of Rs. 2-3 crores. The actual amount within this range depends on factors like the chosen location and type of property for the store. The Franchise fees is Rs. 10 lakh, Space Required is between 6000 to 8000 sq ft equipped with a billing counter, product display area, and trial room (in some cases, Zudio may allow less space Franchise also). Providing parking facilities to customers can also be a beneficial addition to the setup. Franchise Model is FOCO(Franchise Owned Company Operated). Security deposit is 6 month rental which is around 30 lakhs. Other costs include Stamp Duty, registration and brokerage. Total expenditure is around 2-3 crores.

·         Leasing Option: Entrepreneurs who wish to reduce their upfront investment can opt to lease the property for the Zudio franchise instead of purchasing it outright. It offers more financial flexibility and is a suitable option for those with limited funds or who want to test the market before committing to a property purchase.

·         Additional Infrastructure Costs: In addition to the initial franchise fee and property-related expenses, there are other infrastructure costs to consider, such as setting up computer systems, ensuring internet connectivity, installing air conditioning, and implementing CCTV surveillance.

·         Employee Salaries and Training: The franchise investment should also account for the costs of hiring and training a team of 5 to 10 employees to manage the day-to-day operations of the Zudio store. Well-trained staff can enhance customer satisfaction and contribute to the overall success of the franchise along with brand reputation.

Application and Documentation: Zudio Franchise Application Documents Requirement

To initiate the process of applying for a Zudio Fashion Franchise, certain documents must be provided. Although business experience or educational qualifications are not mandatory, some personal and property-related documents are required.

1.    Personal Documents:

·         Identification Proof: Applicants must submit copies of their Aadhar Card, PAN Card, and Voter ID Card as proof of identity.

·         Address Proof: To verify their residential address, applicants need to provide copies of their Electricity Bill and Ration Card.

·         Other Documents: Passport-size photographs, an active Email ID, and a Phone Number are essential for communication purposes. Additionally, any relevant educational qualification-related documents should be submitted.

2.    Property Documents:

·         Business PAN Card: Applicants need to furnish the PAN Card associated with their business or franchise venture.

·         Franchise Agreement: The franchise agreement, a legal document outlining the terms and conditions between the franchisor and the franchisee, must be signed and submitted.

·         Business TAN Copy: The Tax Deduction and Collection Account Number (TAN) associated with the business must be provided.

·         Business Address Proof: To confirm the business address, suitable documents must be submitted.

·         Shop Address Proof: Proof of the shop’s address, where the Zudio franchise will be established, is necessary.

·         All Required NOCs (No Objection Certificates): Any relevant No Objection Certificates from local authorities or landlords should be provided to ensure the smooth operation of the franchise.

·         GST Registration Certificate: A copy of the Goods and Services Tax (GST) registration certificate must be included in the application.

·         Lease Agreement (if applicable): If the property is being leased, a valid lease agreement needs to be submitted as proof.

How To Apply for Zudio Store Franchise Application

To apply for a Zudio Franchise, interested individuals can follow these steps:

·         Visit the official Zudio website.

·         Click on the “Contact Us” option.

·         Fill out the franchise application form with all the required information.

·         Submit the completed application form.

If the Zudio company selects the application, they will initiate contact with the applicant for further proceedings regarding the franchise opportunity.

Profitability and Revenue Sharing in Zudio Franchise

The Zudio franchise operates on a FOCO model, providing a consistent revenue share of approximately 16% and a promising internal rate of return ranging from 12% to 15% on the initial investment. However, the overall profitability of a Zudio apparel franchise is subject to various factors, including the location of the store, its size, average customer footfall, and other relevant considerations.

Product MRP	100%
Total Gross Margin	38%
Franchisee Margin (FOCO)	16%
Franchisor Margin	22%

Support and Benefits of Investing in a Zudio Franchise

Comprehensive Support from Tata Group:  Throughout the franchise journey, franchisees receive valuable guidance and assistance in various aspects of the business. This is one of the major advantage

1.    Client Acquisition Support: Acquiring and retaining customers is essential for any business. Zudio franchisees benefit from support and strategies to attract and build a loyal customer base.

2.    Effective Marketing Strategies: The Tata group provides marketing support, helping franchisees promote their Zudio Fashion Store effectively. This assistance can range from digital marketing initiatives to traditional advertising methods.

Benefits :

1.Reputed brand and recognition

2. Fixed Revenue Share :  At Zudio Franchise, the FOCO model is followed, ensuring a fixed revenue share of approximately ~16% from the total revenue. Along with that, franchisees can look forward to a projected Internal Rate of Return (IRR) ranging from 12% to 15%. This translates to a stable and consistent revenue share, offering franchisees the potential for attractive returns on their investment as the business grows over time.

3. Focusing on Outlet Scalability.

4. High Growth & Expansion potential.

5. Affordable and wide Variety of Product Range

Per store Revenue Details for Zudio franchise

        Capital Required and Other Details:

·         Capex Required: Rs. 2 – 3 Crores

·         Franchisee Fee: Rs. 10 lakh

·         Return on Investment: 2.5-3 years

·         ROCE (Return on Capital Employed): 60% at Store level

·         IRR(Internal Rate of Return): 12-15%

·         License Period: 7 Years

·         Key Product Offering:

·         Fashion & Apparel for Men, Women, & Kids

·         Space Required:

·         Minimum 3000 – 6000 sq. ft. (or 6000-8000 sq. ft.)

·         Franchise Model:

·         FOCO (Franchise Owned Company Operated)

·         Year and City of Establishment:

·         2016 in Bengaluru, India

·         Number of Franchise Outlets and Cities:

·         Over 352 outlets in 119 cities

·         Revenue Sharing:

·         ~16% of total revenue

Conclusion About Zudio Franchise

In conclusion, starting a Zudio franchise is a great opportunity to enter the fashion market. With a wide range of products and support from the company, it offers a promising business venture with the potential for good returns on investment. But the downside is that, you need a huge amount of upfront capital to Invest in Zudio Franchise.