Red Tape franchise is one of the best shoe Franchises in India. We will discuss Red Tape Franchise Cost, Profit, Review, and How to Start the franchise.
Starting in 1996, The franchise has 1400+ outlets in India. You can directly enroll for the Red Tape Franchise by filling up the form on their website or the form given below on this website.
Apart from shoes, You can sell Red Tape and its affiliated company’s Bag, Belt, Mask, Shorts, Pants, T-shirt, and many more apparels.
Red Tape Franchise Cost
- Red Tape Franchise Cost ₹1,00,00,000 Rupees to ₹1,50,00,000 Rupees as an initial investment.
- No Franchise Fee will be charged but 50 Lakh Rupees will be charged as a Security Deposit which is refundable
- The company will Initial Stock with the Security Deposit Amount
- The minimum area required is 1000 Square Feets.
- Other Investments include Branding, Store Setup and Interior Cost
- The Agreement will be for 5 Years, which will be renewed for free if everything goes good
- No Royalty will be charged on Sales.
- The expected Return on Investment is 1.5 Years.
Red Tape Franchise Profit
We will analyze the Red Tape Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 7,20,000 Rupees i.e. 24,000 Rupees per day.
|Gross Sales||7,20,000 Rupees|
|Material Cost @75% (inc.GST)||(5,40,000) Rupees|
|Electricity and Water Supply||(8,000) Rupees|
|Salary of Workers and their Expenses||(40,000) Rupees|
|Other expenses||(10,000) Rupees|
|Net Profit||72,000 Rupees|
We can conclude that the Profit Margin of the Red Tape Franchise is 10% for the Sales of 7,20,000 Rupees. 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 9 Lakh Rupees per month and the profit margin will be 14% on Sales or 1,26,000 Rupees.
Location plays a very crucial factor in determining the success rate of a franchise along with food 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, or any place where young people love to have Shoes and Lifestyle items.
How to get Red Tape Franchise?
To get the Red Tape Franchise, you have to fill out the Google form below then we will allot you a franchise specialist who will guide you the best.
Thanks for reading the blog, If you have any queries regarding the franchise then you can ask me in the comment box or on my
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