How to start

How to start a Global discount market :

About our Franchise Business:

Global discount, a franchise is a registered company which solely own the administrative rights to appoint a new franchise to sell products that are fully owned or sourced from the manufacturers.

Ways to become an authorized merchant:

You can apply through a formal application, directly through the Global discount office. Once after submitting the application successfully, we will inspect the site before proceeding further.

A security deposit of Rs.30,000 (Interest-free) should be made. The amount without any deduction will be returned back once closing down the franchise shop.

Franchisee Eligibility:

Individual or partnership proprietorship, private limited, Company, Society or associations are accepted to form a franchise with Global Discounts.

Location Eligibility:

A minimum of 1000 sq.ft to 4000 sq.ft is required to form a franchise but a space of 500 sq.ft to 900 sq.ft is eligible for rural areas. And the site must manage a return Rs.60 for every investment of Rs.1000.

Funding:

Initial Investment:

An initial investment of Rs.1000 is required for each sq.ft. The purchase cost which includes racks and other elements, together with rental charges are extra.

Profit:

Customer card and Customer relationship:

A franchise having a monthly sales of worth 15, 60,000 and has a monthly income and expenses of the franchise which has invested Rs. 10, 00,000 is explained below, (All costs in Rupees – INR)

While investing an initial investment of Rs.10, 00,000, the time for it to break even is 33 months and the franchise is able to make a revenue of Rs.60 for every Rs.1000 the time for breakeven can be reduced. Suppose if the turnover for every Rs.1000 is lesser than Rs.60, the breakeven time may take longer.

Usually, Global discount franchises normal break even is between 36 and 60 months and the nett profits recorded after this will be considered as 100% profit.

RentRs.10 X 1000 Sq.ft10,000
Salary4nos. X 300012,000
SalaryManager 80008000
Electricity, Water2000
Telephone, post3000
Printing and Computer Stationery3000
Rates and Taxes6000
Interest and Bank charges15%13000
License and Office Expenses1000
Packing Materials2000
Income Tax11,000
Royalty1560
Workers Charges3000
Generator Expense1000
Miscellaneous2640
Sale15,60,000
Profit 7%1,09,200
Total Expense79,200
Net profit30,000

Tips:

Franchise source stock:

Once every 15 days, the franchiser will deliver stocks to the franchisee. The delivery by the franchiser is purely based on the stock availability. Based on the direction by the franchiser, the franchisee needs to make an order for the whole lot. If not then the franchisee should buy products directly from the company.

While purchasing the franchisee should pay the total payable amount through a bank or bank draft. Credit is not entertained by the company.

Franchise Signboards:

The promotional materials include displays, signboards and advertisements must be sourced directly from the company.

Franchisee License:

All legal licenses should be renewed on time and taken care by the franchisee.

Starting a New Franchisee:

For an existing franchise to start a new franchise, they to file a fresh application just they did initially. The will be any consideration and the same procedure followed usually will be followed.

Franchisee Expiry:

Franchiser or a franchisee don’t have any date limitations. As long as he wants to continue, he can continue based on the agreement.

Legal:

Based on the rules and legal boundaries, we global discount work. The agreement which matches those specific rules are legally unbreakable.

Jurisdiction:

Global discount is registered under companies Act 1956. If there are any legal issues, relevant to franchise or any other must be under the jurisdiction of courts.