What is a franchise
Starting a successful business from scratch is not an easy task. To succeed in your own business, it is not enough to have certain economic and marketing knowledge. Most novice businessmen hit more than one bump before the business begins to generate good income. You will be able to avoid troubles by 50% if you start working with a trusted company.
What is franchising? This is an opportunity to start your own business under the name of an already promoted brand. An entrepreneur signs an agreement with a certain company. For a certain fee, the businessman is supplied with high-quality goods and supported in running his business. The Calcedonia franchise offers good opportunities. You don't need huge investments to start earning money. Beginning entrepreneurs are also attracted by soft terms of cooperation.
Information about the company
Comfortable clothes for home are in demand all over the world. People want to feel comfortable and at the same time be attractive in any environment. The Italian brand “Calcedonia” offers high-quality products in this direction. The cost of the franchise also pleases domestic entrepreneurs. Therefore, stores with the appropriate name began to open in Russia.
"Calcedonia" is high-quality clothing for home and beach, bright accessories. The company began its work in 1986. Until the end of the 20th century, the brand was known only in Italy. After 2000, new stores began to open in other countries. It began to develop quickly. Only positive reviews could be heard about the cost of the franchise. Therefore, many aspiring businessmen decided to cooperate with the company. Today, more than 1,500 stores around the world operate under the brand name. This figure is increasing every year.
"Calcedoni" offers only high-quality products that are produced in Sri Lanka, China, as well as in some European countries. A company's franchise provides an opportunity to earn money from a proven brand and offer its customers consumer goods.
Main information:
Year of company foundation: | 1986 |
Startup costs: | From 1,600,000 rub. |
Entrance fee: | 200,000 rub. |
Royalty: | No |
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Calzedonia is a popular Italian manufacturer of high-quality underwear and hosiery. The brand is known in several countries, including Russia. It develops on the basis of its own retail trade and a franchise network. Let's find out more about the Calcedonia franchise.
The foundation of the first store took place in 1986, in a suburban area of Verona. The relatively small store offered women's tights and swimsuits. Today, the fast-growing Italian brand spans several categories of loungewear, lingerie, beach accessories, swimwear and hosiery.
The number of facilities around the world totals more than one and a half thousand, most of which operate under the Calzedonia franchise scheme. This brand is already known to many franchisees for its loyalty and good attitude towards partners. Among consumers, the brand is associated with a favorable combination of high quality products and reasonable prices.
The advantage of the Calzedonia franchise is that it represents not only its own brand, but also two other equally popular brands. Products available in stores:
- Calzedonia;
- Tezenis;
- Intimissimi.
A wide variety of product assortments helps to generate high demand and traffic to this store, as well as create a wide range of customers with different price needs. 70% of all products are developed and manufactured at the company's own factories located in several European countries, China and Sri Lanka.
Franchise Calzedonia
Contacts for concluding a transaction can be found on the company’s official website. In order to start selling goods under a well-known brand, it is worth studying the proposed conditions. It is quite possible to fulfill them if you focus on the corporate principles of the company. What are the requirements for a calzedonia franchise? Reviews show that investments of at least one million rubles will be required. The main requirement of the company is a retail area of 60 square meters. It will take a lot of money to fill it with quality goods.
The basic conditions for the franchise cannot be called too strict. The initial payment is 200 thousand rubles. Every year it will be necessary to pay an additional royalty of 17 thousand rubles. For this money, you can officially sell quality goods under the brand name and count on the support of the company’s managers.
“Calcedonia” pays great attention to the store format. It must be an attractive retail space with six or more employees.
Advantages of the Calzedonia franchise:
- Present on the Russian market since 2005. The fact that today more than 1,500 retail outlets are open speaks for itself.
- Collections in the store are updated regularly. With the help of the program, trade turnover is effectively planned, and stocks in the warehouse are replenished based on specific needs. Moreover, the company is ready to buy back unsold stock several times a year.
- According to information declared by the company, the average turnover of one operating store is about 400,000 euros per year, however, with successful placement of the outlet and proper planning, much higher figures can be achieved.
Advantages of working as a franchise
How can the Calcedonia franchise be beneficial? Reviews show that the lump sum fee seems quite small, considering that for this money the entrepreneur receives enormous support from a world-famous company. In addition, it becomes possible to use the brand’s extensive accumulated experience, as well as its resources (signs, advertising, etc.). Staff training is provided completely free of charge, as well as ongoing consulting on issues related to business development.
Franchising Calzedonia stores is very convenient. An aspiring entrepreneur pays royalties, and in return gets the opportunity to use excellent software. Technical support is provided around the clock. Cash registers, mannequins and other fixtures (equipment) may be provided for the store. An entrepreneur can use convenient software to order goods for his store from a wholesale warehouse. Delivery is also provided under favorable conditions.
Another advantage is that franchising provides the opportunity to sell goods with deferred payment. Thus, the entrepreneur gets even more opportunities to earn money.
What can attract you to the Calzedonia franchise?
Entrepreneurs who have a partnership with the Calcedonia store can name a number of significant advantages over other representatives of this industry:
- reliable partnership, which is determined by clearly developed conditions and requirements of the civil and legal legislation of the Russian Federation in the franchising agreement;
- a development strategy proven over decades, constantly improving, and always aimed at high results;
- both beginners and experienced entrepreneurs are provided with comprehensive support from highly qualified professionals at the stage of opening a store and its subsequent operation; the regional manager will not only check for compliance with company standards, but also provide all possible assistance in various matters to achieve greater success;
- accessible and intellectually simple modern technologies that simplify logistics processes, conduct sales analysis and obtain up-to-date information from the franchisor;
- advertising support from the company, including original materials, window dressing, various promotions, partnerships with the media;
- conducting a specialized training course on the basis of already operating Calzedonia facilities with theoretical and practical classes, plus the opportunity to attend master classes and trainings aimed at the successful implementation of a business project.
The Calcedonia franchise is a profitable investment, based on many years of experience, offering good prospects and rapidly developing business.
Terms of delivery of goods
The minimum amount for which an entrepreneur can order household goods and accessories is one million rubles. In this case, 400 thousand must be paid in advance. The remaining amount is paid upon arrival of the goods. It is possible to conclude an agreement on deferred payment. According to the terms of delivery, the entrepreneur must order at least 40% of the basic models. The remaining 60% could be a new collection. The entrepreneur determines the sizes and specific models independently.
Special attention is paid to the retail cost of the product. What does the Calcedonia franchise offer? The conditions state: the entrepreneur must not exceed the final price of the goods specified in the contract. The cost of individual models is calculated based on the cost of running the store. Overloading the warehouses of retail outlets is not allowed.
There is one more advantage of working under the Calcedonia franchise. Reviews show that once a year the company buys up leftover goods in stores with a 40% discount on the original price. This makes it possible to get rid of models that cannot be implemented.
Franchise Calzedonia description, prices
Conditions of the Calzedonia franchise: - investments - from 1 million 200 thousand rubles;
— franchise cost – 200 thousand rubles; — store equipment – approximately 17 thousand rubles. per sq. m. + VAT; - royalty - no; — store area – 60-80 sq. m., including 10 sq. m. for a warehouse; — software – approximately 17 thousand rubles. per year + VAT; — minimum number of employees – 6 people; — the average cost of the collection is 1 million 200 thousand rubles. A month before the expected opening date of the store, Calzedonia must be provided with a bank guarantee in the amount of 1 million 200 thousand rubles. or a deposit in the same amount. After signing the contract, the franchisee makes an advance payment for the first delivery of goods in the amount of 400 thousand rubles.
This amount is taken into account when making final payments. Twice weekly deliveries of marketing materials and merchandise are made and delivered directly to the store. Even in the most ordinary average store, the minimum annual turnover is about 17 million 500 thousand rubles.
The Calzedonia company carefully develops a brand development program and provides the practical training necessary for opening a store: the training program includes a theoretical preparatory course developed by the Calzedonia company, a number of practical classes to familiarize franchisees with the product range and sales strategy.
Using the provided software, the franchisee will be able to sort the received goods, track sales statistics, control the stock of the warehouse, and exchange data with the franchisor via e-mail. Twice a year, the manufacturing company buys back unsold goods and sells them in stock stores.
Brand advertising
pays great attention to advertising support of its brand. The corresponding videos and tabloids can be found on television and in the press. The advantage is that franchise store owners do not have to spend a lot of money on advertising. The company will do everything at its own expense.
Business owners can also invest money in advertising at their discretion. In this case, there will be more chances of getting a good income.
Is it worth starting cooperation?
The Calcedonia franchise is a profitable investment. However, before you start your own business, you need to have a good business plan. Every detail is worth taking into account. It is worth considering that the products offered are in the middle price segment. Swimsuits and pajamas costing over 2 thousand rubles will not sell well in every provincial city. The Calcedonia brand is more suitable for settlements where at least 200 thousand people live.
It is worth considering in advance the location for the store. It should be an attractive point of sale with a large flow of potential buyers. The city center is ideal. However, it is worth considering the possibility of competing stores nearby.
The business plan must take into account absolutely all expenses. These are not only fees for the Calcedonia franchise, but also tax fees, rent of premises, and employee salaries. If the calculations are carried out correctly, the business will be able to recoup within 12-18 months.
Empowerment
It will be possible to significantly increase profits if you create an online resource on which high-quality products will be presented. According to the franchise agreement, this is not prohibited. However, sales can only be increased if you create a high-quality online store with professional product photos. Additionally, you will also have to hire a manager who will handle online orders. In addition, you will have to enter into an agreement with the bank for Internet acquiring.
Reviews from those entrepreneurs who work online and offline show that comprehensive business development makes it possible to pay off a franchise twice as fast.