Categories: Franchise Business

Royal Enfield Franchise: Cost, Profit Margin, Dealership In 2024

Royal Enfield franchise is one of the best shoe Franchises in India. We will discuss Royal Enfield Franchise Cost, Profit, Review, and How to Start the Franchise.

Starting in 2000, The brand has 180 dealers in various parts of the country and about 100 service centers. You can directly enroll for the Royal Enfield Franchise by filling up the form on their website or the Google Form given below on this website.

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Royal Enfield Franchise Cost

Royal Enfield Franchise Cost ₹60,00,000 Rupees to ₹65,00,000 Rupees as an initial investment. The minimum area required is 800 Square feet. The Franchise Fee is 1,00,000 Rupees. No Royalty will be charged on Sales.

Particulars	Amount
Registration Fees	2,50,000 Rupees
Inventory for Showroom Bikes	25,00,000 Rupees
Machineries & Servicing Kits for Service Station	10,00,000 Rupees
Spare Parts & Accessories Stock	5,00,000 Rupees
Security Deposit (Refundable)	10,00,000 Rupees
Interior, Civil Work & Branding	10,00,000 Rupees
Other Expenditure (Marketing and Misc)	2,50,000 Rupees
Total Investment	65,00,000 Rupees

The Agreement will be for 10 Years, which will be renewed for free if everything goes good
The minimum area requirement is 2000 square feet for 3S (Sales, Service Station & Spare Parts Accessories) Dealership in which 1000 square feet are required for the showroom & 1000 square feet for the Service Station.
The frontage of your site must be a minimum of 30ft.
There must not be any government objection on your land.
In case of Lease/Rent the applicant has to send the rent agreement paper to the company within 3 months after getting the LOI.
There should not be any other Royal Enfield Showroom within the radius of 4 Km.
Your site should be located in the city / on the city entrance.
If the site preferred by you is out of the city, that should be located on any National Highway or State Highway.
The expected Return on Investment is 1.5 Years.
50% Salary of the Employees will be borne by the company the rest by the franchisee
Sales Margin will be 8-10% and will be increased up to 12% based on the sales performance.

Royal Enfield Franchise Profit

We will analyze Royal Enfield Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 45,00,000 Rupees i.e. 1,50,000 Rupees per day.

Particulars	Amount
Gross Sales	45,00,000 Rupees
Sales Margin @8-10% (We are taking 9% on an average)	4,05,000 Rupees
Rent	(1,00,000) Rupees
Electricity and Water Supply	(20,000) Rupees
Salary of Workers and their Expenses	(60,000) Rupees
Other expenses	(25,000) Rupees
Net Profit	2,00,000 Rupees

We can conclude that the Profit Margin of the Royal Enfield Franchise is 4.44% for the Sales of 45,00,000 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 60 Lakh Rupees per month and the profit margin will be 5.33% on Sales or 3,20,000 Rupees.

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, or any place where young people love to have Shoes.

How to get Royal Enfield Franchise?

To get Royal Enfield 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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Required documents for the franchise are mentioned below:-