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Retail 2016-10-20

Relaxo takes to franchising to reach out widely

In an interaction with Franchise India, Kewal Dhar, Head retail operation, Relaxo, talks about entering into the franchising model.

Tell us about your brand.

We are in this market since 1976; our major brands are Hawaii, Flite, Sparx and Bahamas. We are a brand known for quality products and affordable prices. So far we were working on the COCO model and have around 260 stores spread across nine states in the country. Now, we are entering the franchise model in order to spread our reach more widely.

What characteristics do you seek in a franchisee?

Firstly, the candidate has to be hardworking and honest. He has to follow company’s systems and conducts. And then we will provide them many ERP systems, which demand to be followed properly.

How does Relaxo support its franchisees?

We conduct marketing activities for the franchisees to do good business. The brand provides a handsome margin on every product. Moreover, there will be season-end sales in order to clear the old stock.

What kind of investments do you seek from a franchisee?

Initially, we are looking for an investment of Rs 17 lacs and another of Rs 12 lacs for infrastructure in order to build a 1000-1200 sq ft showroom. And the breakeven will be in 2.6 years. 

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