US-Based Pizzeria Giving Master Franchise
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About Business
Looking for a Master Franchisee of a Pizza outlet in India, with a focus on the north and UP (Noida) to begin with. The parent is US-based and was founded by an Italian who came to NY and started the business. It's been around for 43 years with an excellent history and sales of close to $1M at the primary location.
Clientele type
The overall pizza market (including the unorganized fragmented sector) in India is projected to grow at a CAGR of 10% annually for the next 10 years. The market penetration of organized players is significant nationwide and growing rapidly - doubling the footprint of burger chains. The organized sector collectively operates 4,000+ outlets is currently dominated by foreign brands, and is projected to grow at an annual rate of at least 15%. It's good timing for an opportunity to participate in this market growth.
Premises
Looking for an investor as a master franchisee to set up 5 operational units and 15 sub-franchisees. The master franchise fee is Rs 45 lakhs and royalties are 4%. Each unit requires 500-700 sq. ft. to set up with an investment of Rs30-50 lakhs depending upon the location. Master franchisees can retain 60% fees and royalties and net earnings from royalties alone could exceed Rs 1 crore over the term of 7 years after recovering the master-franchise fee of Rs 45 lakhs from the 15 subs.
Asking Price Includes
The franchise fee covers brand, design, exclusive use recipes at the franchised location, and training. Assistance with kick-off. Master franchisees can set up to 15 sub-franchisees in the same territory.
Reason
They are planning to enter the Indian pizza market.
More Details
The franchise fee which covers brand, design, recipes for exclusive use at the location franchised, and training is priced at Rs 5 lakhs per unit for a term of 7 years and Rs 45 lakhs for a master franchise. The royalty is a nominal 4%. By comparison, Dominos charges Rs10-20 lakhs and 6-8% for royalty and marketing fees for each unit in addition to other costs for advertising/promotion.
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₹10 to ₹200 Cr
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