4. Industry Overview
The hair and beauty salon industry in India has been estimated at
6,900 Crore up from1,500 crore in 2005. It is expected to reach
29,800 Crore in 2015 and surge to 98,500 crore by 2020.
77%
23%
5. Emerging Industry
Grooming –a necessity
Cash & carry
High margin
High Loyalty - Repetitive Business
Hair keeps growing and so does your Business!
Beauty Salon Opportunity
6. Why Franchising?
You’re buying into an idea that’s already proven to be successful
The management of the business has already been formulated
The support network is already in place
Your chances at receiving business financing are greatly improved
Your company has a “Brand Name”
Franchised businesses have a 90% success rate within 5 years of opening
while Non-franchised businesses have only a 23% success rate within their
first 5 years
7. Why WTF ?
Fastest growing salon chain in India
Established brand image
Accumulated knowledge on business
Corporate image and support
Unisex Model
Affordable Pricing
Training, Re-training and continuous HR management
Smart promotions and brand building exercise
Lesser Risk – Security for Investment
Continuous operational support and guidance
8. Absolute Integrity
Passion towards the Beauty / Styling Industry
Willingness to be a Owner cum Manager
Ability to lead the team
Good PR skills and Customer Orientation
Ability to Invest on requirements
No Knowledge of Beauty Industry
What do we expect?
9. Supports Provided
Site selection
Architect and layout finalizing
Project Handholding
Staff Recruitment
Franchisee Induction & Training
Best deals from approved vendors
Pre launch promotions
On going staff training
Staff Assessment & appraisal process
Promotions & Brand building
Introduction of new services and products
10. Illustration - Investment Summary
Total Investment 35-50 lacs
Salon Size (sq ft) 200 - 2000
Breakup:
Franchise Fee 3 L
Main Signage and POS software 1 L
Staff Recruitment & Training facilitation 1 L
Launch Marketing Expense 1 L
Architect Fee 0.65 L*
Investment in Interiors Rs. 1250 per sft.
Air Conditioners 3 L
Investment in Equipment 3 L
Investment in Products 2 L
Gadgets 1 L
Towels & Uniforms 1 L
Computer , Music 1 L
Generator 3 L
Others 1 L
All the mentioned
figures are indicative and
can vary
Rental Advance on Actual
*Architect site visit expenses on actual
11. Royalty
18% Royalty collected on Service Revenue net of Taxes
1% Royalty collected on Product Sale
First 3 months Service Royalty calculated at 8%
Month 4 to 6 Service Royalty Calculated at 13%
18% Royalty comes into effect from Month 7 onwards
Royalty calculated and collected on a Daily Basis
Royalty consolidation – Month End
Royalty collected through Auto Debit System – Axis Bank
Franchisee to open Current A/c with Axis Bank