BudgetBeauty is launching a new franchise opportunity called BudgetBeauty Emerald to provide salon services at affordable prices. The presentation provides background on the founder's experience and the company. It outlines the business model for BudgetBeauty Emerald franchises, which will be compact salons offering MNC quality services at local prices. Details are provided on the target customer profile, competitive advantages, training policies, profit projections and startup costs for prospective franchisees.
2. Background
● Grooming is a fast growing, recession proof industry that enjoys over 10%
YOY growth.
● Zafar Khan promoter of BudgetBeauty brand has over 25 years business
experience, first as an business consultant then as an very successful
entrepreneur.
● BudgetBeauty Private Limited is an company constituted and headquarted
in Mumbai, India.
● BudgetBeauty began its business operation recently June 2013
● BudgetBeauty plans to build a global chain of salons in next few years.
Promoter has 40 years of experience in franchising system.
● BudgetBeauty is professionally managed.
● BudgetBeauty was formed to provide value-for-money services to retail
consumers that is by cutting out business frills and passing the benefit to
the retail patrons.
4. BB Emerald business concept.
BudgetBeauty Emerald is build to wipe out unorganised sector in
salon business by combining MNC quality at local prices.
BBE is to be built as compact salon to cut down on capital
investment and monthly operating costs, benefits of which in terms
of operating cost savings are to be passed on to the retail
customers as way of lowest possible services tariff.
5. BBE competitive business advantage.
● MNC quality at local prices services.
● Quality hair and beauty treatment formulations purchased in bulk volume to save on
costs, savings passed to franchisee partners.
● Access to national pool of hair and beauty talent from which franchisees staffing
needs would get serviced.
● Free training to franchisees local staff using web technologies.
● Consistent training to franchisees in best business management practices and to their
staff newer techniques, product usage, process protocol, soft skills and more.
● National brand.
● Experienced back-end team.
● Corporate tie-ups.
● Incentive program design to motivate staff for top performances.
● Pre-production and pre-fabrication advertising design and artwork provided free of
charge to franchisees.
● Constant financial health monitoring and corrective actions suggestions is made.
● Guidance in acquiring bank loan, leased premises and more.
6. BBE target customer profile
Young tight budgeted fashion conscious female and fashion conscious male. (Non
style conscious customers are not the primary target of BBE).
Those who dine at MacDonald, buy their groceries at Big Bazaar kind of stores are
prime target customers of BBE.
8. For every 20,000 population a salon is required. Frequency of Salon visit is once every 45 days
9. Training Policies
It is mandatory that staff hired for BudgetBeauty Salon are screened,
graded, and trained by BudgetBeauty Corporate Office.
We will depute our corporate trainers from Mumbai however the franchisee
will need to directly bear their out of pocket cost such as Air Travel, Lodging
and Boarding for a week.
Franchisees can also opt to arrange video conferencing based training at
their end. The training feed provided from our corporate office is without
obligation and same is imparted as per need.
Architectural
drawings
The corporate office provides standard architectural drawing
as part of the package.
The franchisee needs to get the target premises measured
and measurements converted to an Autocad drawing at their
end. They also need to take pictures of premises externally
and internally.
Empanelled design and design audit architects list will be
provided the franchisee will need to source their design
adaptation from them upon paying recommended design
adaptation and design audit fees.
10. Staffing
BBE franchisee needs to hire pre-approved staff locally or from
our national pool of staff. As a BBE franchisee you will need one
senior and two junior hairstylist, one senior beautician and one
junior beautician. You will also need cleaner.
Franchisee should manage their salon on day to day basis to
ensure customers are promptly attended, salon consumables are
timely replenished and local promotion is carried out.
Retail Pricing Strategy
The base unit price for availing of any services is Rs. 149/- Only.
This includes local taxes.
Haircut Rs. 149/-
Blow Dry Rs 149/-
Head Massage Rs 149/-
Hair Straightening by Hair Ironing Rs 149/-
Beard/Mustache Trimming Rs 99/-
Eyebrows shaping. Free if taken with any other service on week
days only etc.
Detailed tariff on request.
11. Brand Communication
Marketing, Advertising, Sales Promotion are to be carried out in accordance the
franchisers brand rule book. Pre-press/Pre-fabrication advertising design and artworks
are provided upon request and as per need of the franchisee partner and without any
extra cost.
It is mandatory that franchisee promotes and provides 7 days of free trial services to
carefully selected target groups at time of their Salon inauguration.
Franchisee is expected to publish one advertisement from provided artwork in their local
daily announcing the inauguration of their salon.
Ideal Location
The ideal location to select for building your BudgetBeauty Emerald Salon would be any
area that has a natural retail footfall catchment area such as a Mall, Shopping Plaza,
Bus/Railway Terminus/Airport waiting room, Universities, Colleges, Courts, Large
Hospitals, City Square, Retail High Streets, Next to Mac Donalds/ Cafe Coffee Day etc.
Close to Large Format Big Bazaar. It is advisable to pay a little extra for prime retail
space as it pays for itself in the long run.
Ideally your retail lease rental budget should not exceed Rs 75,000/- per month. Lesser
the better. Try to enter into a lease agreement for a period of 5 years.
12. Time-Line
It takes around 60 days from date of payment realisation
to building and inaugurating your salon.
For staffing please inform 30 days prior to inauguration.
It will take 45 days to build and ship your ready to
assemble kiosk from mumbai/ If it is a shop model and
fabrication is involved then franchise will need to
execute the fabrication part locally.
13. Our requirements:1. You should be willing to make necessary capital investment.
2. Be in a position to operate your salon according to our rules and regulation on a day to day basis.
Description Amount Comment
Franchise Establishment Fees 5 Lac Paid once prior to contract
signing.
Territory Reservation Deposit 1 Lac Refundable and non interest
bearing.
Royalty Payment As per your
built up
capacity
Computed as Rs. 15000/- plus
Rs 3000/- per styling chair.
You will need to make provisions for lease rental deposit, cost of interior, cost of tools and
equipment. Pan-India average to build a BudgetBeauty Emerald Salon is around Rs 13.5
to Rs 20 Lacs all said and done till Inauguration which completes Phase I. In Phase II you
will incur only operational expenses.
Contract period is 5 years, renewable upon mutual consent and by paying franchise
renewal fees of Rs 2.5 Lacs to acquire renewal of next tenure of 5 years.
14. Profit estimation
Description Amount Comment
Pan-India average
sales of a branded
salon
2.5 Lac pm To arrive at projected steady
state sales it would take
around 18-36 months.
Average Monthly
Operating Expenses.
1.5 lac pm Includes all kinds of
operating costs, such as
salary, rent, electricity,
royalty, mainrenance, phone,
stationary and refreshments.
Profit Estimation 1.0 Lac pm Profit before taxes.
Above figures differ from city to city, area to area and seasonality of sales.
15. Start-up cost
Figures will vary from city to city and area to area.
Above figures are given to form an fair idea. Taxes extra as applicable
Sr No Description Amount in Lacs
1 Franchise Establishment Fees 5.0
2 Territory reservation deposit 1.0
3 Lease Deposit (As per your negotiation) Budgeted 2.5
4 Interior Fabrication Cost (Managed locally) 7.5
5 Equipment and Tools etc (Purchased directly) 2.5
6 Contingency Budget 1.5
Total 20.00
16. Territory reservation rules
Between two BudgetBeauty Emerald Salon 2 km distance shall
be maintained as reserved territory so that franchisee partners
could reap rich rewards from their own effort upon development
of their own territories.
However, Malls/Airports/Railway Platforms/Star Hotels are
treated as an universe unto themselves and are an exception to
the road rules.
While calculating distances between 2 salon, measurements
shall be taken from Google Map Satellite Image and distances
are measured by plotting on scale by tracing a road route as a
vehicle would travel.
18. Photo gallery
BudgetBeauty Staff Celeberate their grand success...301 haircuts in a single day from 11
styling chairs. Staff seen enjoying their success at a party held in their honour...
19. Photo gallery
BudgetBeauty Salon Staff line up to march for greater success...seen here celebrating and
bonding to set new records in productivity...
20.
21. Zafar Khan, has 30 years plus rich experience in
building brands and franchise from scratch to
success.
Zafar heads BudgetBeauty budding chain as its
CMD.
Zafar contributed in no small measure to building of
HairXpreso chain, Jetking Infotrain etc.
BudgetBeauty has 2 super successful operational
salons at Mumbai. 100 more are on the anvil.
You can contact him at:
09167332890/ 02265112112. Email:
atlantisimc@gmail.com
