Did you know that it was actually back in 1995 when Nike first entered the Indian market? Sure, ever since, they have practically dominated the footwear, clothing, and accessories segments in the country. If you live in India, you may already be familiar with the love that Indians have for this particular brand, and that is precisely where you can capitalize on it. How? Well, go with their franchise option, and today, we will tell you how much the Nike franchise cost in India among other things. Alright, here we go now.

Well, How Much Does It Cost to Open a Nike Franchise in India?

The very first and super important thing for which you clicked on this post is to know how much you’ll need to spend in order to own a Nike franchise right here in India, right? Well, it is not as straightforward as you think, there are a lot of factors involved and these factors include expenses such as the franchise fee, expenses for setup, inventory purchases, and various other costs. Let’s break it down simply:

• Franchise Fee: This is the amount that you will have to spend in order to enjoy the Nike brand and access its methods of doing business. Just so you know, it is a figure that fluctuates between ₹5 lakhs and ₹25 lakhs. You are entitled to sell Nike’s products as well as enjoy their fame for having paid this money.
• Setup Costs: When you finally get your franchise, now you will need to start getting ready for the operation of your shop, you know? This includes items like the decorating of the shop, the buying of, and the arranging of shelves and display units, and so on. This will cost anywhere between ₹10 lakhs to ₹20 lakhs.
• Initial Inventory: You will also have to be sure to supply your store with the next items before the actual shop opening: the first items include shoes, clothes, and accessories, which is pretty obvious. This will cost you between ₹15 lakhs and ₹20 lakhs. Generally, you will need enough inventory to run for 2-3 months at a time.
• Working Capital: In addition to the costs mentioned above, you will have to set aside ₹10 lakhs to cover your day-to-day expenses, and that’s a must. This includes employee salaries, paying for electricity, and other operational costs.
• Royalty Fees: After you start selling, you will pay a fee to Nike which is a percentage of the store’s profit. Just so you know though, this is called a royalty fee, and it ranges from 3% to 8% of your total sales.
• Advertising Fee: As well as the advertising fee, which is 2% of your total sales, the payment of Nike. The funds raised here among other activities, such as Nike advertisements will be paid to them to get them out to the people. This is how more potential customers are drawn to your store.

All in all, if we put it simply, the total investment required to operate a Nike franchise in India is between rupees 50 lakhs and rupees 2 crores.

So, What’s The Profit Potential of a Nike Franchise in India

This is a very attention-grabbing opportunity that the Nike franchise has in India in terms of profit prospects. Like, you as a franchisee can very easily anticipate a 44% gross profit margin from your main sales before referring to any of the expenses. And if you really cut down the expenses from it, well, your net profit margin will be between 12% and 15%. This means that after the deduction of other costs like salaries, rent, royalties, etc.

All in all, most Nike franchisees can hope to get back their initial investment, which is from around ₹50 lakhs to ₹2 crores, within a period of 2 to 4 years.

What Are the Requirements for a Nike Franchise?

But it is not like anyone can go ahead and apply for a Nike Franchise in India, there are a few things you need to consider before you do that. Here are a few examples:

• Investment Requirement: Sure, a sufficient amount of cash is of utmost importance when it comes to establishing and running the store. The volumes of cash that you have to invest must be in the range of ₹50 lakhs to ₹2 crores to establish a new store.
• Space Requirement: You need to have a retail store that has a minimum of 500 and a maximum of 1,000 square feet. This is the space needed to showcase products, provide a pleasant shopping experience, and have enough parking space and a small storeroom, you know?
• Hire Employees: It is necessary that you have between 5 to 10 employees for your store. Staff from Nike will train you and your team as well in the retail service and products thereby ensuring everyone knows about the Nike products and offers good customer service.
• The Experience: Nike prefers franchisees with retail marketing or related experience that spans from 2 to 3 years. This will help a great deal to determine if you are fit to run a retail business and also deliver a high level of customer service which is what Nike is famous for.