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Modular Kitchen Franchises in 2024: Contact Details, Costs, and Profits!

The modular kitchen industry in India has seen a significant boom in recent years, driven by increasing urbanization, changing lifestyles, and a growing preference for modern, efficient kitchen designs. If you are considering investing in a modular kitchen franchise in 2024, this blog will provide you with essential information on costs, profits, and how to get started, along with insights on how Tradesworld can assist you throughout the process.

Why Invest in a Modular Kitchen Franchise?

Benefits of a Modular Kitchen Franchise

  1. Growing Market Demand: The demand for modular kitchens is increasing, driven by urbanization and a rising middle class.
  2. High Profit Margins: Modular kitchen businesses typically enjoy high-profit margins due to the premium nature of the products.
  3. Brand Support: Franchisors provide comprehensive support, including training, marketing, and ongoing assistance.
  4. Established Business Model: Proven and successful business models that reduce the risk associated with starting a new business.

Top Modular Kitchen Franchises in 2024

Here are some leading modular kitchen franchises to consider:

  1. Hafele
  2. Sleek by Asian Paints
  3. Godrej Interio
  4. Livspace
  5. Modular Kitchen World

Cost of Opening a Modular Kitchen Franchise

The cost of opening a modular kitchen franchise can vary widely depending on the brand and location. Here’s a detailed breakdown of the estimated expenses:

 

Modular Kitchen & Wardrobe Display Units -Rs. 4,00,000

 

Rent, Staff Salary, Lead Generation-Rs. 6,00,000

 

Online ERP Lead management + App-Rs. 36000

 

Total-Rs.10,00,000

 

 

Detailed Cost Explanation

  1. Franchise Fee: This fee grants you the rights to operate a modular kitchen franchise, including initial training and ongoing support.
  2. Showroom Setup: Costs for setting up the showroom, including construction, decor, and furnishings.
  3. Equipment and Furnishings: Essential equipment such as display units, kitchen fittings, and interior decor.
  4. Initial Inventory: Initial stock of modular kitchen units and accessories needed to start operations.
  5. Initial Marketing and Promotion: Initial marketing efforts to create brand awareness and attract customers.
  6. Working Capital: Funds to cover operational expenses during the initial months of business.
  7. Tradesworld Service Fee: Charges for Tradesworld’s comprehensive services, including site selection, financing assistance, and project management.

 

Profit Calculation

  • Annual Revenue: Total income generated by the franchise in a year from sales of modular kitchens and accessories.
  • Gross Profit Margin: Percentage of revenue remaining after deducting the cost of goods sold (COGS).
  • Net Profit Margin: Percentage of revenue remaining after all operating expenses, taxes, and interest are deducted.
  • Payback Period: Time it takes to recover the initial investment from the profits generated.

How Tradesworld Can Help

Tradesworld specializes in facilitating franchise setups, providing comprehensive support throughout the process. Here’s how Tradesworld can assist:

Site Selection

Tradesworld helps identify prime locations for your modular kitchen franchise, ensuring high visibility and accessibility. Services include:

  • Market analysis
  • Demographic studies
  • Lease negotiations

Financing Assistance

Tradesworld offers support in securing financing through:

  • Bank Loans: Assistance with loan applications and negotiations.
  • Government Schemes: Guidance through the application process for various government funding schemes.
  • Investor Networks: Connecting franchisees with potential investors.

Project Management

Tradesworld manages the project from start to finish, ensuring timely and cost-effective completion. Services include:

  • Overseeing showroom setup and installations
  • Coordinating with vendors for equipment and inventory
  • Ensuring compliance with local regulations and franchise standards

How to Apply for a Modular Kitchen Franchise

Step-by-Step Application Process

  1. Research and Initial Inquiry: Visit the brand's official website or contact their franchise department to gather information. Tradesworld can assist with this initial inquiry.
  2. Submit Application: Fill out the franchise application form available on the brand’s website. Tradesworld can help ensure your application is complete and accurate.
  3. Initial Meeting: Attend an initial meeting with the brand’s franchise team to discuss your interest, experience, and financial capability.
  4. Review and Approval: The brand reviews your application and conducts background checks. Upon approval, you will receive a franchise agreement.
  5. Sign Franchise Agreement: Review and sign the franchise agreement. Tradesworld can provide legal assistance to ensure you understand all terms and conditions.
  6. Training and Setup: Attend the training program provided by the brand. Start the setup process for your showroom with Tradesworld’s project management services.
  7. Grand Opening: Launch your modular kitchen franchise with marketing support from both the brand and Tradesworld.

Frequently Asked Questions (FAQs)

What are the ongoing fees associated with a modular kitchen franchise?

Franchisees typically need to pay ongoing royalty fees, which are a percentage of the monthly gross sales. These fees support the brand’s national marketing efforts and ongoing operational support.

Trades World

Joined on 03, Jan 2024  

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