Shoes are a promising product for sale, unlike the same clothes. You can live without another dress, but not without a new pair to replace the spoiled one. But the problem is that it is very difficult for newcomers in the field of shoe sales to navigate brands, create a product matrix, and find reliable suppliers.
All these (and more) problems can be solved by buying a franchise. And if you consider that most brands have abandoned lump-sum contributions and royalties, you can also reduce the already not small costs of starting a business. Well, of course, risk reduction is also a plus.
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In order not to make a mistake, when choosing a franchise, you should consider:
Let's take an example.Dano is a small city with a population of up to 300,000 people with a single large enterprise and a low average salary. Opening a store with expensive Italian shoes here is not an option.
Even if the franchisor "allows" to dilute the range of the trademark with other budget brands. And, on the contrary, an inexpensive shoe store in the center of the capital is unlikely to be in demand.
Therefore, the first thing to do is to determine the optimal price segment. To do this, you can simply walk around the shoe stores and see the prices. And only after that make a decision about buying a franchise.
This information can be checked online, according to the details of the company (the service is paid, it costs from 300 to 600 rubles). It can be used to assess the real state of affairs and understand whether the company is expanding or simply trying to solve financial problems at the expense of the franchisee, or rather lump-sum contributions and royalties (this is 3-5% of the turnover per month).
The more a brand invests in promotion, the more popular it is. And the more recognizable the brand, the higher the sales - buyers are willing to overpay for the logo. Therefore, when choosing a franchise, this point is very important - what is the point of paying for the use (which, in essence, a franchise is) of an unknown company.
Before filling out an application, see how many stores the brand has. And that is, cases when a small individual entrepreneur, who managed to open only two points in 4-5 years of work (a boutique or even one IM), actively sells a successful franchise (there is a lump-sum fee and royalties, of course, otherwise they will earn money). It is clear that there is no question of any support, transfer of valuable knowledge, as well as bringing the franchisee to profit.
Assess the market.For example, if you are going to open a children's shoe store (hundredth in the city), then think in advance how you can attract potential buyers. Maybe it will be unusual models, a cool loyalty program or big seasonal discounts. If all this is not in the franchisor's agreement, then the likelihood that the store will close after six months of operation is very high.
It is also worth paying attention to whether the brand owner offers an exclusive for the city (that is, there is no risk that in a couple of months the exact same store will open in a neighboring shopping center with a similar product range) or not.
Discounts on goods, the possibility of exchanging unsold shoes, methods, terms for returning defects. Will the franchisor help in compiling an assortment matrix for a specific region (this is important, since shoes are a seasonal product).
Is it permissible to include products of other brands in the assortment - shoes or the same accessories, such as socks, tights, skin care products, textiles.
It is worth clarifying the terms of the contract, the possibility of prolongation. By the way, an indefinite contract is not an advantage at all. By law, the trademark owner may refuse to cooperate at any time if he considers that the new partner does not comply with the recommended service rules or adversely affects the company's reputation.
If the franchisor manages to prove the fact of violations, the franchisee loses the right to use the trademark. Accordingly, it loses the money invested - a lump-sum fee, paid royalties, money for the repair of the premises, wages of sellers.
Separately, about the requirements for the premises. Some brands stipulate that the future store should be located in a shopping center that already has shoe stores. Here you need to assess the risks, compare prices.If, for example, the cost of conditional women's shoes of good quality from competitors is an order of magnitude less, then there is a high probability that the new outlet will not pay off at all.
You should not look at approximate calculations on the franchisor's website - these are conditional figures, usually having nothing to do with reality. The timing of the profit will be affected by the location of the store, and seasonality, and customer demand.
On average, brands take a period of 24 to 30 months. But in fact, it is more - someone goes to zero only after three years, not to mention profit. Someone is less lucky, and the payback period stretches up to 4 or even 5 years.
To find out more accurate information, it is better to look at reviews or contact existing franchisees - conscientious companies will calmly provide contacts. If not, then you should consider whether to buy such a franchise.
Here, probably, the most important thing is to carefully study the terms of the contract. By the way, conscientious franchisors send the draft agreement in advance so that the future potential partner can consult with a lawyer.
In the document itself, it is a good idea to study what is included in the franchise package. Major brands offer:
Newcomers to the business should not buy a franchise with remote support, since the process from finding a place to the first delivery of goods will turn into endless telephone conversations and correspondence in instant messengers. Solving issues (of which there will be a lot) with this method of interaction will be very difficult.
In fact, only 2 franchise brands are included in the rating. There is, though still KENKA - a joint Finnish-Spanish production. The site is working, there is information about the franchise, but no specifics about the amount of investment, terms of cooperation (perhaps due to difficulties with supplies).
A company with 85 years of history producing children's and teenage shoes. A full production cycle, from design development to a finished pair, quality control and a recognizable logo.
Terms:
There are no special requirements for the franchisee himself, except perhaps experience in retail trade and a willingness to comply with company standards. As for the payback period, then in the most successful scenario, it will be possible to make a profit in a couple of years.
More details can be found at https://franchise.kotofey.ru/
Brand of clothes, shoes, accessories for children, operating since 2009. Products are sewn from high-quality raw materials in factories in Turkey, China, Italy, and comply with the requirements of GOST. The line is updated every year (on average, 500 models), so there should be no problems with implementation.
They cooperate both with wholesalers, without drawing up a commercial concession agreement, and on a franchise basis on the principle of a mono-brand store. That is, it will not be possible to add positions of other brands to the product matrix.
Basic conditions:
As for the payback indicators, the franchisee honestly indicates a period of 36 months, with the proviso that in each case this indicator changes.
There is no information about the terms of the contract on the official website - standard advertising about stable demand, product quality, general phrases about helping to open a new outlet.
There are no reviews on the franchise, but on products - only positive ones. Prices are also quite democratic. Users note the quality of tailoring, the materials themselves and, of course, the convenience for the child.
More information about products, terms of cooperation can be found at https://kapika.ru/sotrudnichestvo/
A brand of shoes and accessories for women (the company refused to develop a men's collection). The network consists of 160 salons, 37 of which are open under a commercial concession agreement. When buying a franchise, the franchisee receives:
The requirements for future salons are quite strict. The area is 100 m2 or more, the ceiling height is at least 3 m. The franchisor approves the manufacturer of commercial equipment, that is, even if a potential franchisee is engaged, for example, in the production of furniture, he will still have to buy racks in a specific company recommended by the brand.
The terms of cooperation (judging by the brief description on the official website) are strictly regulated - no initiative, only strict adherence to instructions. Reporting - in the form of brand owners. The company will check the quality control of service periodically, with the involvement of mystery shoppers. With the selection, training, certification of employees - the same thing.
In addition, when considering the application, the company will take into account the financial condition of the future partner and his "personal qualities" (quote from the conditions from the official website). The payback period and the amount of the initial investment are not specified.
All details on https://ekonika.ru/franchise
Italian brand with twenty years of history. The line includes men's and women's shoes made of genuine leather, accessories - from bags, purses, wallets, business card holders, to umbrellas and shoe care products.
The franchise is designed for large cities with more than half a million people. Presented in three formats:
The minimum investment amount is 8 million (mini), 12 million (store). The initial inventory balance is included in the price. The time from the moment of signing the contract to the opening of the outlet is no more than 60 days.
Of the advantages of the franchise - the owner of the brand takes upon himself the search for premises, the development of a design project, and the repair of the premises. Promises to pick up unsold leftovers and marriage, both pre-sale and the one that buyers have already returned. There are no problems with the return of unsold goods either - the company itself organizes the export, pays the transportation costs.
Employees and the franchisees themselves are trained in person, in the Moscow office - no telephone consultations or Skype negotiations. Subsequent periodic training is carried out by the assigned manager, on site. And most importantly, it is possible to provide an exclusive for the city (by agreement).
Of the minuses - the owners of the brand themselves approve contractors for repairs, furniture, commercial equipment are ordered from partner suppliers. On the one hand, it is really easier, on the other hand, there is no chance to save on repairs.In fairness, they still promise a corporate discount of 15% on everything.
The site promises a payback period of 12 months, with a monthly profit of 450 thousand rubles. The figures are not completely unrealistic, but the fact that not every store will be able to make a turnover of 1.5 million (the amount includes the purchase of goods, remuneration of employees, utility, tax, rent payments) per month is a fact.
You can fill out an application, download the presentation at https://milana-shoes.ru/partners/franchising/
Wholesale international company supplying clothes, shoes, accessories for men and women. The brand has a wide range, reasonable prices. Franchise buyers are guaranteed full business support, from the selection of premises to staff training and the introduction of automatic accounting and analytics systems.
Now for the numbers:
Three franchise options are available - opening a new shoe store, refurbishing an existing salon, or opening a point with bags and accessories.
Of the advantages - the possibility of exchanging slow-moving positions during the season, timely delivery of goods, education and training conducted by company managers.Plus discounts on goods, purchase of equipment for the store (suppliers and contractors are approved by the company itself). It is possible to cooperate without concluding a commercial concession agreement - the same bulk purchases.
More details at https://vitacci.ru/franchising/salony_zhenskoj_i_muzhskoj_obuvi/
Before you get involved in an adventure with buying a franchise, you should assess the risks (after all, the amount of investments is decent), analyze the market in your region (from purchasing power to competitors' prices). And most importantly, remember that advertising that promises half a million profits a month does not guarantee absolutely nothing. The figures, of course, are not taken from the ceiling - these are most likely data on the most successful franchisees. And not the fact that the new partner will be among them.