Croma franchise is one of the great retail store Franchises in India. We will discuss Croma Franchise Cost, Profit, Review, and How to Start the Franchise.
Croma was started by the Tata Group in 2006, which is a subsidiary brand of Infiniti Retail. The franchise has 450+ outlets in India. You can directly enroll for the Croma Franchise by filling up the Google Form.
Croma has over 300 SKUs across kitchen appliances, Home appliances, Audio & Video, Mobile & computing accessories. With Leadership presence in categories like Kitchen Appliances, ACs & LED TVs.
Table of Contents
Croma Franchise Cost
Croma Franchise cost ₹5,50,00,000 Rupees as an initial investment. The minimum area required is 2500 Square Feets. The Franchise Fee is 40,00,000 Rupees. The brand runs on the FOCO Model of Franchise.
|Franchise Fee||40,00,000 Rupees|
|Capital Expenditure||2,24,00,000 Rupees|
|Advance for Inventory||1,75,00,000 Rupees|
|Rental Security Deposit||29,00,000 Rupees|
|Designing & Consulting||70,00,000 Rupees|
(Marketing and Misc)
|Total Investment||5,50,00,000 Rupees|
- The agreement will be for 5 Years, and 40 Lakhs will be the renewal fees for the next 5 years
- Workers Trained in customer service standards with learnings from service leaders across industries.
- The expected Payback Period is 4-5 years
- Franchisee Return on Capital Employed is 14%-15% per annum
- Marketing will be handled by the brand
- Suitable store property/land as per Croma guidelines
Croma Franchise Features-
- Staff with superior product knowledge, trained in customer service who would help find the best product for each customer’s unique needs.
- Introduced Touch-feel-try for electronics. Well-researched store layouts supported the purchase process.
- Croma became the destination to discover new products and find adequate range to make an informed decision
- They have a 20 million customer base and Up to 800 per store per day walk-ins with a 1.5-2x increase during the festival season.
- Croma brought in many industry firsts making them the “Most admired consumer electronics retailer” for 7 years in a row
Croma Franchise Profit
|Total Revenue (Rs.crore)||Revenue share|
|Upto 25 Crore||4.25%|
|25 Crore- 35 Crore||2.00%|
|35 Crore- 50 Crore||1.50%|
|More than 50 Crore||1.25%|
We will analyze the Croma Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 2.4 Crore Rupees per month i.e. 8 Lakh Rupees per day or 28.8 Crore per Year.
We can conclude that the Profit of the Croma Franchise is 4.8 Lakh Rupees per month for Sales of 2.4 Crore Rupees per month. The outlet may have less profits in the initial days but the store will gain high popularity eventually and will have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 60 Crore Rupees per Year and the profit will be 75 Lakh Rupees per year.
Location is crucial in determining a franchise’s success rate along with quality and service.
The location should have a very high footfall. It should be in the main market of that area. A corner outlet is the most preferable option.
You can open the outlet nearby colleges, corporates, malls, or any place where people demand to have Electronic items.
How to get Croma Franchise?
To get the Croma Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
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