Q. Does a franchise require prior jewellery knowledge?
A. The main purpose of taking a franchise is that the franchise owner need not have any franchise experience. Their core role would be selling the product on MRP and customer handling. Rest majority of it in terms of design, quality, packaging, etc are taken care of by the company.
Q. Can we do with a lower investment?
A. If you analyze the investment, the majority of your investment goes in stock inventory. Fashion industry like us the revenue of the store would depend on the design and stock which the franchise owner keeps. The amount suggested in the franchise model is the minimum required stock to fill in the minimum design range require.
Q. Can we just buy the products and sale from our existing store or from home?
A. As a brand we don’t give our design for reselling and that is the sole purpose of franchise. But if any interested person has a successful running big store of jewellerey or female centric product line we could explore the KIOSK format.
Q. What about the unsold stock?
A. As a company we come up with new designs with regular intervals and every franchise has an option to replace 20% of the monthly build amount. So, they can stay tuned with fresh design and also can get rid of unsold stock.
Q. What if the business is unsuccessful within 5 years of contract?
A. Usually it takes 2 years to understand after all the tweaking that business is not walkable. In such case company would convert the store into a FOCO model that is a franchise owned company operated where the company would run the operation of the store. Further, if it’s still unsuccessful we would go ahead with the winding of procedure.
Q. After 5 years of the contract if I don’t want to continue then what will happen?
A. As the contract 10 years is minimum 5 years after which the franchise can discontinue at which case company would buy back 50% of the stock at the price it had built and the remaining 50% at 92% of the silver rate of the day and the amount of which would be cleared in the preceding 6 months.
Q. Is the franchise fee refundable and after 5 years is it renewed?
A. The franchise fee is a nonrefundable amount given for the support and usage of the brand which is strictly nonrefundable once the LOI is signed. We don’t have any renewal charges and the contract holds good if the franchise wants to continue post 5 years.
Q. How much is the starting price of the product and is it pocket friendly?
A. Price of our earrings and studs start from as low as 290 rupees which is easily affordable by any common people.
Q. Why is silver jewellery expensive, where the silver price is lesser?
A. The price point of any product has a lot of factors which would be a part of MRP. Usually, it includes the margin of the franchise, the kind of the jewellery, number of stones, kind of plating, factory of manufacturing, country of origin, import duty all this what comprise the end product cost. That is why if an Indian product are non-rhodium plated product it is cheaper.
Q. How are the payment terms at the initial set of the store?
A. The 5 lakh which is the franchise fee has to be paid at the primary level. Post which interior cost would be paid to the respective interior vender directly from the franchise post direct negotiation where company would not be involved, one month before the opening of the store the stock investment has to be transferred to the company.