Thursday, June 8, 2023
HomeApparel FranchiseHow To Start A Zudio Franchise - Cost, Fee, & Profit

How To Start A Zudio Franchise – Cost, Fee, & Profit

Are you looking for a retail fashion & apparel franchise with moderate investment? Have you ever dreamed of venturing into a premium apparel and fashion brand in India? Starting A Zudio franchise may prove to be an enticing opportunity and certainly would end your research on fashion store franchises.

The article will assist you in comprehending the Zudio Franchise model with its Cost requirements, Fee, Profit margin, and complete guidelines to set up this franchise in your city.

We assure you that, after reading this complete article, you would be in a position to choose the BEST AVAILABLE APPAREL FRANCHISE, and certainly help you take an informed decision on the Zudio chain.

Zudio Franchise outlet
  • Franchise model: FOCO
  • Space Required: 6000 – 8000 sq. ft.
  • Franchise fee: Rs. 10 lakh
  • Security Deposit (6 month rental): Rs. 29 lakh
  • Stamp Duty and Registration: Rs. 20 lakh
  • Consultancy/Brokerage : Rs. 2 lakh
  • Total Investment: Rs. 2 – 3 Crores

Understanding an apparel chain growth prospects:

The textile and apparel industry is one of the leading segments of the Indian economy, the largest source of foreign exchange earnings for India, and employs more than 38 million people. It contributes 4 percent to the gross domestic product (GDP)(A must-read document, if you are looking for Apparel Industry Future growth prospects), 20 percent to industrial output, and slightly more than 30 percent to export earnings.

The rapid expansion in the apparel industry is driven by the rise in disposable income, regular changes in clothing trends, affordability(various brands are offering clothes at reasonable prices, which weren’t the case earlier), and much more.

Apparel Industry market size

According to the India Brand Equity Foundation, the Indian textile and apparel industry will reach US$ 190 billion by 2025-26, exhibiting a CAGR Growth of 10% during 2020-2025.

Zudio Franchise Snippet

Zudio Franchise outlet

Zudio is one of the rapidly growing subsidiary brands of Trent Group (Owned by Tata) in India, known for offering an affordable and trendy look and feel fashion apparel for men, women, and children. They have a strong presence of more than 352 outlets across 119 Cities.

It provides a range of products aimed at young value-conscious customers. Surprisingly, The majority of the stores are located outside the city and offer moderately priced western-style clothing starting at around Rs.~ 300–400. Please continue reading if you are looking for a reputed apparel and fashion chain and this little snippet about the Zudio chain and apparel Industry growth prospects excites you.

We’ll be providing you with comprehensive and well-researched information regarding Zudio chain, along with its price, fees, profit margin, and—most importantly—the reason “Why” you need it.

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Overview of Zudio Franchise

Establishing its first outlet in Bengaluru(India) in 2016 as a subsidiary chain of the Trent brands, Zudio is one of the fastest-growing reputed fashion and apparel chains in India. Their offering includes clothing, ethnic wear, lounge wear, footwear, and other varieties for men, women, and kids.

They have a strong presence of more than 352 outlets across 119 different cities, thanks to their eminent marketing tactics, franchising model, and sophisticated outlets offering best-in-class service to its consumer. With an added advantage of offering apparel and accessories since 1998, has enabled the franchise to capture a substantial market position in this segment.

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Why Consider Owning a Zudio franchise?

Zudio franchise cost

Considering the future growth potential of the Fashion and Apparel Industry, Starting a Zudio outlet will be especially beneficial to its franchisee unitholder. Now, let’s start with the reason to own this apparel retail franchise,

  1. Reputed brand and recognition:
    • As mentioned earlier, the chain is a subsidiary brand of parent chain Trent, which takes care of the entire business activity.
    • Within a few years, the chain has expanded to more than a hundred outlets across various cities.
  2. Affordable product range:
    • The affordability of its products allows them to target young and value-centric consumers.
    • These customers also enable them to build a loyal fan base and ultimately generate an impressive profit margin.
  3. High Growth Expansion:
    • The franchise operates in a rapid growth industry and offers a proper expansion plan, which enables the unit holder to run the business hassle-freely.
    • As per the latest report, Zudio has a future expansion plan to add more outlets, taking it to a total count of 300 plus by FY22.
  4. Fixed revenue share:
    • Zudio operates at the FOCO model and offers a fixed revenue share of around ~16% revenue share and 12-15% IRR.
    • Additionally, a lump-sum investment and a fixed revenue share would be profitable to franchisees.
  5. Emphasis on Outlet Scalability:
    • In its retail network, Zudio has a targeted focus on building up new franchise locations and new brand ranges.
  6. Achieving Sales through Omni-channel model:
    • With the help of the Omni-channel model, the franchise has generated and garnered an impressive profit margin for its chain.
    • According to the latest financial report, Zudio’s parent chain posted an outstanding profit of 114 crores in Q1FY22.

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How Much Does a Zudio franchise Cost?

Zudio franchise cost and profit

It is also important to mention that the initial investment on Zudio retail includes various components like franchise fees, inventory costs, outlet’s construction or renovation expenses, and working capital. Irrespective of other franchise business, Zudio requires a little extra investment to own its outlet. This franchise requires a total investment in range of Rs. 2 – 3 Crores for a store size of around 8000 sq. ft.

Below are the cost and other details associated with the franchise,

EssentialsCapital required and other details
Key product offeringFashion & Apparel for Men, Women, & Kids
Space requiredMin. 3000 – 6000 sq. ft.
Franchise ModelFOCO( Franchise owned company operated)
Year and City of Establishment2016 in Bengaluru(India)
Number of franchise outlet and CityOver 352 outlets in 119 cities
Capex RequiredRs. 2 – 3 Crores
% Revenue sharing~ 16%
Franchisee FeeRs. 10 lakh
Return on Investment30-36 months
Return on Capital Employed60% at Store level
Internal rate of return12-15%
License Period7 Years

Sources for above data:

The Zudio franchise cost in India is around Rs. 2 – 3 Crores for the estimated site area of 6000-8000 sq. ft.

Fashion and Apparel franchise:

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How much is Zudio franchise Profit Margin?

Is Zudio Franchise Profitable?

As stated earlier, the tata zudio franchise operates at FOCO model and offers a fixed revenue share of around ~16% and 12-15% of internal rate of return on lump-sum invested. Nevertheless, the profitability of any apparel franchise like Zudio will depend on numerous factors, such as location, store size, and average customer footfall and more.

Let me elaborate more on this,

Margin sharing on FOCO Model

Product MRP100%
Total Gross Margin38%
Franchisee Margin (FOCO) 16%
Franchisor Margin 22%

Per store metrics for Zudio franchise

Key RequirementsDetails
Size (sq. ft.)6000-8000 sq. ft.
Investment (INR/sq ft.)Rs. 2000/ sq. ft.
Size (in sq. ft. for calculation)6000 sq. ft.
Rent/month/sqft (INR)Rs. 80 per month per sq ft
Capex Rs. 1.2 Crores
Franchisee FeeRs. 10 lakh
Security Deposit (6 month rental)Rs. 29 lakh
Stamp Duty and RegistrationRs. 20 lakh
Consultancy/BrokerageRs. 2 lakh
Total Investment (per/store)Rs. 1.81 Crore/ per store

The above tabled data will provide you an exact earning and cost involved in setting up a Zudio outlet in your city.

The franchisee bears rent and electricity costs, while the franchisor manages the entire operations, with expenses like an employee salary, inventory management (transportation, discount, shrinkage, etc.), housekeeping, security, and all day-to-day expenditures.

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Is Zudio Franchise Profitable?

In general, the profitability of a Zudio outlet may depend on a variety of factors such as location, competition, management, marketing, and more.

Nevertheless, considering Zudio’s robust franchise network, TATA group backing, Affordable and wide range of apparel offerings, extensive marketing support, and emphasis on outlet scalability, one can anticipate a fixed revenue share of around ~16% in the FOCO model.

Zudio franchise Requirements

  1. The franchisee must meet the financial and site requirement(store frontage: 40ft) and should bear the expenditures such as rent and electricity cost of the outlet.
  2. To own or invest in franchise outlet, one is advised to follow the guidelines and adhere to the standards of company.
  3. Interested applicant should be able to produce the original documents like,
    • Pan Card/ Aadhar card
    • Bank Passbook
    • Business’s GST Certificate
    • Franchise agreement
    • Passport size photos
    • Address proof of site
    • NOC or Other requested document
  4. Interested prospect should have at least few year of experience in the apparel industry, that will enable them to understand the chain’s franchise in a better way.

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Tips for selecting the best location for a Zudio franchise store

Zudio Franchise Growth in FY23

Have you finalized to take up this franchise? But, Not sure, which location to choose? No worries! We have covered everything for you.

  1. Demographics :
    • You should consider who will be your target audience, average population, Income and their spending habits.
  2. Accessibility:
    • Make sure your proposed outlet is at city center or on highway with growing near by population.
    • A bad location for the best franchise can really hurt you.
  3. Competition:
    • Consider choosing an outlet near its competitor’s stores like PUMA or Van Heusen.
  4. Foot traffic:
    • High foot traffic areas can lead to more visibility and higher sales.
  5. Parking availability:
    • Adequate parking facilities for customers is important.
  6. Lease terms:
    • Consider the terms of the lease, including rent and length of the lease agreement. It should fit in your budget.
  7. Local regulations:
    • Make sure the location complies with all local zoning and regulatory requirements.
  8. Future development plans:
    • Evaluate if there are plans for future development in the area that could impact the store’s success.

Future outlook for Zudio franchise

Future outlook for Zudio Franchise
  1. Market growth:
    • There is no doubt that retail market for clothing industry are going to expand enormously in coming years, and brands like Zudio will surely benefit from it.
  2. Customer preferences:
    • Offering affordable and trendy outfits are key reasons for this franchise’s growth. As Zudio continues to appeal its customer, it would certainly be making more revenue and profit.
  3. Expansion plans:
    • As per the latest financial report, TATA has already planned for expanding its outlet reach through franchising model.
  4. Competition:
    • There is no business with Zero competition. However, with continuous innovation will help Zudio to stay ahead in this competition.
    • Competition in the retail market is intense and Zudio will need to continue to innovate and differentiate itself to stay ahead of the competition.
  5. Technological advancements:
    • Being a part of Renowned chain – TATA group, Zudio will continue to grow extensively in the market by adapting new tech and data-driven approach.

Overall, considering the above mentioned point, future outlook for Zudio looks quite positive.

How to Apply for Zudio Franchise? | How to get Zudio franchise?

Due to its higher franchise demand, Zudio requests its interested prospect to use Email for franchise related queries.

Once you are ready with the Zudio franchise’s financial and site requirements and prepared to take up this franchise, you need to visit the official website franchise form. The highlighted link will navigate you to the Zudio’s franchise form.

Apply for ZudioGet Started

You should fill up the required details like Name, Email ID, Phone Number, Address(Street, City, State, Pin code), Business/Work experience, and Location Information.

After form submission, somebody from the franchise’s sales team will reach out to you for further processing.

Good Luck!! Happy Franchising!!

Final Takeaway – Conclusion

Established in 2016 under the parent brand the Trent, Zudio is one of the rapidly growing apparel and fashion chains in India, Thanks to its varieties in western apparel, vast industry exposure, affordability, and scalability. In addition to over 230 outlets in 57 different cities, they offer a variety of products under its outlets such as clothing, ethnic wear, lounge wear, footwear, and other varieties for men, women, and kids.

Zudio follows a FOFO & FOCO model. One would have to spend at least Rs. 2 – 3 Crores to open an outlet, and they can easily make a fixed revenue share of ~16% and 12-18 IRR. If you are passionate about the fashion and apparel industry and are optimistic about it, then you should consider starting this franchise.

Check out other apparel franchise : Van Heusen, FirstCry, PUMA

That’s it from my side. Friends, I sincerely believe that my guide on “Start a Zudio Franchise – Cost, Fee, & Profit” was helpful and educational, but if you’d need more details, you can check out the franchise’s official website. If you like this piece, kindly let me know by leaving a comment and spreading the word to as many of your friends as you can; Your comments offer us more inspiration to keep producing high-quality material for you. Many thanks.

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  1. What is the Cost required for Starting a Zudio franchise?

    Ans: Owning a reputed and renowned Zudio outlet would at least require Rs. 2 – 3 Crores. Below are a few more details about the cost requirements;

    Franchise model: FOCO
    Space Required: 6000 – 8000 sq. ft.
    Franchise fee: Rs. 10 lakh
    Security Deposit (6-month rental): Rs. 29 lakh
    Stamp Duty and Registration: Rs. 20 lakh
    Consultancy/Brokerage: Rs. 2 lakh
    Total Investment: Rs. 2 – 3 Crores

  2. Is Zudio a Tata product?

    Ans: Yes. Zudio is one of the subsidiary chains of the parent company, the Trent(Wholly-owned by Tata group). Founded in 1998, The Trent has four subsidiaries – Westside, Zudio, Star, and Landmark.

  3. Is Zudio and Westside same?

    Ans: No. they aren’t same. However, they both are subsidiary chain of the parent company the Trent. Generally, to own a westside outlet, it requires little extra money than Zudio outlet.

  4. What brands are available in Zudio?

    Ans: They offer a wide range of apparel brands, some of which are listed below,

    Generic, Lymio, Sparx, Amazon Brand – Symbol, Amayra, Dennis Lingo, Harpa.

    To learn more about, Zudio franchise investment please read the complete article.

FranchiseGoal India
FranchiseGoal India
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