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HomeApparel FranchiseDoes Zudio Franchise Cost justify its investment? - A Complete Analysis

Does Zudio Franchise Cost justify its investment? – A Complete Analysis

You may have been searching or planning to become a franchise retailer of Zudio. No doubt that Zudio is one of the leading apparel chain in India, but does its investment cost justify the entry point?

If you are in a dilemma about whether Zudio franchise is the best option for you in the apparel and fashion sector, then you should consider reading this informative piece on this franchise.

FranchiseGoal India was the first leading digital platform to cover every details on its franchise. All the relevant data and sources were garnered after enormous research and analysis. And you all showered you love on us.

Now after receiving multiple queries on Zudio franchise cost and its analysis, we are going to cover every aspects on it. If you want to learn, how can you become a Zudio franchise in your area, considering checking this piece.

In this article, we’ll be focusing more the below topics. Feel free to share your thought in the comment section.

  1. How much would you really need to open a Zudio outlet?
  2. What’s the basic requirement and responsibility of a franchisee and franchisor?
  3. How much margin should you expect from a Zudio franchise operation?
  4. What’s the current and future growth prospect for the franchise?
  5. What’s the legitimate process to get the franchise?
  6. Most importantly, Why you aren’t getting any response from the franchise?
  7. Conclusion – What factors supporting its investment cost?

These topics will surely benefit all the interested prospects to understand the Zudio’s business and learn everything about it.

According to its Investor presentation of November 2023, the overall store count for Zudio has grown at a CAGR of 64%. Isn’t simply awesome?

How much truly does a Zudio franchise cost?

How much Zudio Franchise Truly costs

Opening a retail fashion stores requires numerous investments, which ideally goes into inventory, store decoration, employee and store management, capex, and deposits.

On a usual basis, an average Zudio outlet has a store space of nearly 4,000 square feet. However, in last financial year, the franchise has inaugurated more than 125 stores, which were of nearly 8,000 square feet each.

According to the Trent’s Annual Report, the initial capital require to launch a fully-functional customer-ready Zudio store costs approximately ₹2 crore to ₹3 crore. However, it may vary depending on the location, store size, and the market demand.

This total investment includes the required onetime deposits, inventory, capex, and more. If someone calculates the investment per square feet, then it results around ₹2500 – ₹3750 square feet.

Key InformationInvestment required and its details
Operational segmentA wide range of premium and affordable
fashion and apparel chain
Space requiredMin. 3000–6000 sq. ft.
Year and City of Establishment2016 in Bengaluru (India)
Number of franchise outlet and CityOver 411 outlets in 130 cities
(As on Sep 2023)
Capex Required₹2 crore – ₹3 crore
Franchisee Fee~ ₹10 lakh
Security Deposit (6-month rental)₹29 lakh
Stamp Duty and Registration₹20 lakh
Consultancy/Brokerage₹2 lakh
License Period7 Years

What’s the requirement to open a full-fledged Zudio store?

Though the franchise hasn’t disclosed the franchise requirements publicly, but here are some key takeaways from our analysis.

  1. The franchise or its partners should at least have a retail space of approximately 3,000 square feet on a high foot traffic area.
    • Including this, you need to make sure that the storefront should be at least of 40 feet.
  2. One should be capable enough to bear the initial capex and passionate about the clothing and fashion industry.
    • It’s worthy to mention that the franchise prospects should have prior experience in operating a big-size chain. Along with this, you should have leadership skills to lead and grow with team.

You may be looking for:

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Basic responsibilities under the Zudio franchise

Every franchise business require a franchise or partners and the franchisor (company itself). But, in case with Zudio, Franchisee does the investment part and franchisor takes care of the general expenditure.

As a franchisee, you’ll be liable to pay the expenses for rent and electricity bill.

However, the franchisor(Zudio team) handles the day-to-day operation of the store and they also manage the employee salary, security, inventory management, housekeeping and everything related to business operations.


How much profit margin should one expect from the Zudio franchise?

As Zudio runs the complete store operation on its own, it doesn’t mean that the franchise doesn’t get anything. According to the verified sources, the franchisee receives a fixed revenue share of nearly ~16% and approximately 12-15% internal rate of return on the lump sum invested.

Obviously, the Zudio is one of the leading fashion and apparel retailer in India, and their overall store presence and revenue is growing at a healthy pace.

Therefore, the demand for the affordable yet premium clothing is booming and franchise like Zudio is set to grab the untapped market share.

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What’s the current and future growth prospect for the Zudio franchise?

Zudio franchise growth prospects
Source: Trent’s Investor Presentation

Zudio was launched in 2016 and in just 7 years, it has grabbed the attention of youth customers with its variety in apparel and fashion range and competitive pricing.

In 2023, the franchise entered into more than 28 cities in India, and grew their total store count to 352 stores by March 2023. They further expanded their presence in the country by targeting numerous micro-markets.

As of the latest data available till November 2023, Zudio has a presence in nearly 130 cities with over 411 stores.

Along with this, ZUDIO is heavily targeting their store expansion in the micro-markets, which is still untapped in India.

Trent Limited, A parent company of ZUDIO, operates multiple brands including, Westside, Star, SAMOH, MISBU, and many more. However, if you analyze their growth pattern, Trent has clear focus on ZUDIO.

As of June quarter 2023, where Trent launched 47 fashion stores across 35 cities, the majority of them were contributed by Zudio, opening nearly 40 stores.


What’s the legitimate process to get the Zudio franchise?

To apply for the Zudio franchise, here are the legitimate process you can go through,

1. There is one and only official website, and you shouldn’t fill the personal details anywhere else.

Official website – Apply for Zudio

You need to fill in the franchise form correctly. Make sure you fill in all the necessary information, such as Name, Email ID, Phone Number, City, State, and other relevant details on the franchise application form.

However, filling out those forms doesn’t necessarily assure getting their franchises, as acceptances depend on availability.


Why aren’t you receiving any response from Zudio after submitting the application form?

As mentioned earlier, the Zudio has already expanded their presence in the tier 1 and tier2 cities in India. According to its annual report, the franchise is planning to grow their presence in the micro markets.

As a result, you may witness several Zudio outlets popping out in the tier3 and tier4 markets in India. The chain might have been receiving numerous queries for its franchises, and replying to everyone of them in a given timeline is certainly difficult.

There could be possibly few reasons for it;

  1. The application form which you’ve filed isn’t from the official website.
  2. Your business/work experience doesn’t qualify to become their franchise.
    • We believe for owning a Zudio outlet, you should have some prior experience in operating any kind of franchises.
  3. The store front and size doesn’t meet the company’s requirement.
  4. Someone else application might have been selected for the proposed locations.
  5. Or, perhaps the chain doesn’t have any plans or growth estimates for their outlet in the applied location.
  6. Last but not the least, the franchise may have been overloaded with enormous franchise queries, and sometimes it may take at least 15-24 days to get a response from them.

For more information on your application, you can send out an email to them at the following address.

Also, you should understand that ZUDIO/Trent holds all necessary rights to sell its franchise. They haven’t authorized any third party vendors to do so.


Wrapping Up – What factors supporting the Zudio’s investment cost?

ZUDIO with nearly eight years of experience in the fashion and apparel brand has positioned itself as a leading player in the segment.

While we observe growing competition in the segment, there are a few factors that can always provide an edge to both existing and future Zudio outlet owners:

  1. ZUDIO is a part of Trent group, and they have been growing at a healthy pace.
  2. It target customers are youth, and it is certainly growing in numbers. Zudio has been also focusing on broadening their presence in the micro markets.
  3. For almost last few quarters, Trent has inaugurated nearly 30-35 stores per quarter.
  4. The competitive pricing for their items are also offering edge over its competition.

Interesting facts on Zudio outlet:

  1. 40 T-shirts, 10 Denim, and 7 Deos sold every minute.
  2. Integrated supply chain
  3. Fashion and lifestyle at irresistible prices
  4. Scalable growth potential

Wanted to check out other opportunities

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FAQ

Does ZUDIO give franchises?

Absolutely, ZUDIO offers its franchises to the interested candidates. However, the available quantity is limited and competition for opening its franchise is huge.

Who are the main competitor of the Zudio?

There are few brands that basically deals in the same segment like ZUDIO, such as Yousta, Max Fashion, and Peter England.

FranchiseGoal India
FranchiseGoal Indiahttps://in.franchisegoal.com
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