Forget about Nike, Puma, and Adidas, it is Red Tape that is making a big customer base in India, and you know why? Well, it is actually pretty simple. The same style and quality of shoes that premium brands offer at a way too high price point, Red Tape is offering just that by not charging you a premium price. That’s kinda the reason why Red Tape became one of the most famous footwear and accessory brands, not just in India, but even in the Western part of the world. And if you are interested, we’d like to tell you about their franchise option, so come with us as we talk about things like Red Tape franchise cost in India, what are their requirements, and things like that. Here we go.

So, What’s The Initial Investment Required?

One of the very important things to know about starting a Red Tape franchise right here in India is what amount of money do you think you would require to invest. Any idea? Well, to start a Red Tape franchise, the total suitable investment you have to make is around Rs. 10 Lakhs to Rs. 20 Lakhs. Just so you know though, more than the basic cost, this cost will also cover things like architectural work, interior design, and some stock to make them unique.

• Investment Range: 10 Lakhs to Rs. 20 Lakhs.
• Infrastructure Investment: 15 Lakhs to Rs. 20 Lakhs (for store decorations like the layout design, etc.).

Not just that though, there is a super good thing about the Red Tape brand. What’s That? Well, in comparison to other brands within the same niche, you see, Red Tape does not involve the payment of any license fee or additional costs to use their company name for the business. What this means in brief is that all you have as a burden in your business is nothing but a brand name, and you can work your way up to good profits in the long run. That’s one of the best bits about it all.

Franchise Revenue Sharing & Profit Potential

The franchise revenue-sharing model, which can be a great avenue for earnings, is the first thing you should consider. For those who don’t know yet, well, in this model, the franchisor basically keeps 25% of the revenue from sales while the retailer gets to keep 75% of the revenue generated during the sales.

Example: Say you sold Rs. 1,00,000 worth of the product during the month; you will get to keep Rs. 75,000, and Rs. 25,000 will go to Red Tape.

Red Tape products that you buy in the store are priced between Rs. 1,500 and Rs. 10,000, depending on the item (shoes, clothing, accessories, etc.). Therefore your income will vary depending on the number of sales you make each month. And talking about ROI (Return on Investment), well, generally, you can get your investment back within 1 to 3 years, which is somewhat decent if you really think about it for a sec.

Ongoing Operational Costs

After the initial franchise setup, operating costs such as employee wages, utility bills, and optional delivery services will have to be also taken care of by you as a franchisee owner, you know? So, let’s just one time go over the ongoing operational costs so that you know what you are dealing with. Here:

• Employee salaries: In order to run the store, you will have to hire about 2 to 7 employees, and that sure is not cheap.
• Utilities: This means electricity (to run air conditioning), internet connection, and store maintenance, again, this cost can add up.
• Optional Delivery Services: You can offer delivery services, but this is not compulsory, especially in India where people like to try out their shoes before they buy, you know?

Thus, it is essential to budget for these operational expenses properly so that your business can run smoothly and effectively, and you can keep on bagging those profits down the line.

Other Franchisee Requirements

The beauty of being a Red Tape franchisee is the fact that prior business experience is not a necessity, which means that to get a Red Tape franchise, you had to be at least 21 years old, and that is not much of a requirement by Red Tape, it is just legal age in India, right? Not just that though, there are no educational qualifications that need to be fulfilled, which is an advantage for people who lack a background in business but still want to make money through such a system, and to be honest, there are a lot of people who fall in this specific category. So, yes, it is a plus for you.

Documents You Will Need:

To apply for the Red Tape franchise, just keep the following documents by your side:

• Aadhaar card (for identification)
• PAN card and TAN copy (for tax purposes)
• GST registration (for legal compliance)
• Address proof (both personal and for the shop)
• NOC (No Objection Certificate) for the shop (if renting the space)