How to Start a Relaxo Franchise – Cost, Fee, & Profit
Are you Interested and looking for exciting opportunities in the Footwear Industry? What about starting your own business by grabbing an exclusive store franchise from a renowned brand? You can do so by becoming a Relaxo Franchise.
In this guide, we’ll go in-depth on the Relaxo franchise, covering its financial requirements, fees, profits, and step-by-step instructions for obtaining this franchise, as well as responding to some frequently asked questions regarding the company.
- Franchise Fee or Deposit to company: Rs. 2 lacs
- Space requirements: Min. 700 sq. ft.
- Initial Inventory: Rs. 5-10 lacs
- Interior Decor(Includes Furniture, Lighting, and other items): Rs. 3-5 lacs
- Branding and Advertising: Rs. 50000 – 1lacs
- Other Expenses(3months additional exp.): Rs. 1 lacs
- Total Initial Investment: Rs. 20-30 lacs
Overview of Relaxo Franchise
Established in 1984, Relaxo is one of India’s most popular and largest footwear manufacturers. The chain has been manufacturing affordable and fashionable slippers, sandals, and sports & casual shoes for men, women, and kids for a long-time. With more than four decades of expertise, quality products, and affordable prices, Relaxo has established itself as a reliable brand and has ranked among the top 500 Most Valuable Companies.
The franchise has a strong presence on the e-commerce platform and more than 350 retail outlets across multiple cities, which makes it a most organized and established brand. The rapid expansion of this franchise is due to continuous changes in footwear design, affordable prices, omnichannel presence, and a robust distribution network of more than 800 distributors across the country.
Based on target consumer, product offerings and demand, Relaxo has sub-brand such as Sparx, Flite & Bahama and they all are leader in this segment.
Please continue reading if you are passionate about Footwear franchises & this little snippet about the Relaxo franchise excites you.
We will offer comprehensive and well-researched information regarding the Relaxo chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.
What are the brands that Relaxo own?
Relaxo has more than six popular brand, targeting a specific set of consumer. below is the details;
- Mary Jane
- Kid’s Fun
Why to Own a Relaxo Franchise
There could be several reasons to start a footwear franchise – Especially a Relaxo brand, and that could be your passion and expertise in the industry. Below are the key points supporting the Relaxo chain ownership.
- Interested applicants may benefit from the expertise and experience of brands like Relaxo, which has more than four decades of industry experience.
- The chain offers a wide range of footwear under multiple brands, which targets a particular set of audiences that helps them to understand the market needs.
- Relaxo provides a proven business model that requires a little investment and offers impressive profit margins.
- The chain has established itself as one of the top footwear brands, which may lead to a devoted customer base.
- The brand has a strong distributor network, which would benefit interested unit holders by getting the new launch products and stock at the earliest.
- Considering Relaxo’s brand recognition and future growth potential, the company doesn’t need an introduction.
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Relaxo Franchise Cost
To start a Relaxo Shoes franchise, one might require a investment of Rs. 20 lacs -30 lacs. Given its investment requirement, Relaxo does offer an impressive gross profit margin on its entire segments.
The chain expects its unit holders to open a exclusive outlets in specific areas such as densely populated market, shopping mall, and etc.
Relaxo Shoes franchise fee
The chain does charge a franchise fee of Rs. 2 lacs to open a Relaxo Shoes franchise and anticipates its unit holder to invest at least Rs. 20 lacs to Rs. 30 lacs. The initial investment cost may vary depending on showroom floor area and initial stocking capacity.
Other Cost Breakup for Relaxo Outlet
|Type of Investment||Cost and Its description|
|Franchise Fee||Rs. 2 lacs|
|Space requirements||Min. 700 sq. ft.|
|Initial Inventory||Rs. 5-10 lacs|
|Interior Decor(Includes Furniture, Lighting, and other items)||Rs. 3-5 lacs|
|Branding and Advertising||Rs. 50000 – 1lacs|
|Other Expenses(3months additional exp.)||Rs. 1 lacs|
|Total Initial Investment||Rs. 20-30 lacs|
The franchisee owner may be liable to pay other recurring expenses such as staff salary, electricity bills, travel expenses, rent(if not owned).
Relaxo Shoes franchise Profit Margin
Owning a Relaxo shoe franchise, which offers a gross profit margin of 25-30% on all segments, could be advantageous for its unit holders. Furthermore, A unit holder may also get a few extra discounts on advance payment.
We will try to elaborate more on its profit margin with a simple case study. Assuming a unit holder opens an outlet on rent and achieves an average monthly sales of Rs. 2.5 lacs(It might vary depending on your location), then below could be the expense breakup;
|Types of Expenses||Cost and its description|
|Average monthly sales||Rs. 2.5 lacs|
|Gross Profit Margin||25-30%|
|Staff Salary(for two staff)||Rs. 16000|
|Electricity Bill||Rs. 4000|
|Travel + Misc. Expenses||Rs. 10000|
|Net Profit||Rs. 30000(12%) with gross profit margin of 30%|
It might look less net profit margin to you but one need to understand that, it has been calculated with some assumptions like Sale : Rs. 2.5 lacs and outlet is rented. Furthermore, If you do more sales then profit margin may significantly increase.
Relaxo Shoe Franchise ROI
With an estimated net profit margin, one can anticipate a payback period of 36-48 months. Furthermore, To increase their sales, the unitholder may also sell their products on the e-commerce website.
Documents required to own a Relaxo franchise
- Rent agreement(if shop is rented)
- Pan/ Aadhar Card photocopy
- Shop pinned location
- GST Certificate for shop
- Trade License
- Bank Statement
- Advance Cheque(If required)
How to Get a Relaxo Franchise?
Applying for the Relaxo franchised outlet is quite simple, one need to follow certain steps and wait for their response.
- Visit the Relaxo official website.
- Navigate to the footer area and click on the Become a franchise link.
- Fill in the details like Name, Email Address, and Phone number.
- Submit the form
Once you submit the form, somebody from the Relaxo team would contact you for further processing. Please note that, the entire application process may involve background and document verification, agreement signing, application approval, Interior construction and inauguration.
Relaxo is one of India’s largest footwear manufacturers that serves varieties of affordable and fashionable slippers, sandals, and casual & sports shoes. The chain established itself as a renowned brand with more than 300 retail outlets and over 800 distribution networks.
Interested applicants can open a Relaxo outlet with a franchise fee of Rs. 2 lacs & a total initial investment of Rs. 20 lacs to 30 lacs. Furthermore, the franchisee may expect a healthy gross profit margin of 25-30% on its entire segment or earn around Rs. 30000-50000 per month, depending on sales volume.
It is a good franchise option based on its investment, profit margin, and brand value. Nevertheless, if you open an outlet in a prime location in the city, you can make a few extra bucks.
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How much does the Relaxo Franchise cost?
Ans: Opening a Relaxo outlet would certainly require a total initial investment of Rs. 20 lac to 30 lacs. Furthermore, below is the cost break up for the Relaxo outlets.
Franchise Fee or Deposit to company: Rs. 2 lacs
Space requirements: Min. 700 sq. ft.
Initial Inventory: Rs. 5-10 lacs
Interior Decor(Includes Furniture, Lighting, and other items): Rs. 3-5 lacs
Branding and Advertising: Rs. 50000 – 1lacs
Other Expenses(3months additional exp.): Rs. 1 lacs
Total Initial Investment: Rs. 20-30 lacs
Is Relaxo Franchise Profitable?
Ans: Definitely! yes. Considering the Relaxo’s brand presence, expertise, fashionable designs, and affordable prices would benefit its franchisee unit holders to run this business seamlessly. Furthermore, Relaxo offers a reasonable profit margin of 25-30% on its entire segments or can earn Rs. 30000-50000 per month.
What are the brands that Relaxo Franchise owns?
Ans: Currently, Relaxo has more than eight brands that all targets a specific set of consumers. Some of their popular brands includes Sparx, Flite, Bahmas, Boston, Mary Jane, and Kid’s Fun.
Who is the owner of the Relaxo brand & when was it established?
Ans: Relaxo is owned by Ramesh kumar Dua and it was established in 1984.