Home   : :   How much is a Croma Franchise Cost & Profit Margin?
How much is a Croma Franchise Cost & Profit Margin?

How much is a Croma Franchise Cost & Profit Margin?

By Startup Authority

Croma Franchise/Croma Store

Croma Store was launched in 2006. Croma was the first one-of-its kind large format specialist retail store that catered to all multi-brands digital gadgets and home appliances and electronic goods  needs in India.

Over a decade since its inception, Croma has almost become synonyms for all electronics needs of every household of almost every Indian. With its tech-savvy well trained staff, explain everything in detail.  It offers the best  product range. It is available online  as well as offline.

It’s always in the service of the customers.  So, today we shall discuss about the Croma Franchise Cost Details, Franchise Model, Requirements, Applying Process and many more in this article.

Croma is the country’s first large format specialist retail chain for consumer electronics and durable with the successful expansion of Croma Zip Stores, Croma Kiosks and the latest online vertical www.croma.com.

Croma Vision : is to become a world class socially responsible retail company that consistently enhances stakeholders value.

Croma Mission: is to become an organisation offering Unmatched Customer Experience through continuous Learning & Innovation.

Croma Company Overview

Official Website https://www.croma.com
Type Privately Held
Industry Retail
Founded 2006
Headquarters Mumbai, Maharashtra
Company size 1,001-5,000 employees
Parent Infiniti Retail  (Tata Group)
Specialties Croma brings under one roof, multi-brand digital gadgets and home electronics products.
Croma franchise overview

Croma Franchise/Croma Store : Products Ranges

  1. At the Croma Store, over 6000 products across 200 brands and 150+ stores are available across 40+ major cities in India.
  2. Croma means – Life, More Beautiful;
  3. Croma promises are based not only on the ways they look but also on the value they provide to the customers.
  4. The range is a perfect fit for those who desire a completely feature-packed and quality product.
  5. Croma is the one of the Tata’s group large format omni-channel electronics retail stores.
  6. Croma has become a trusted electronics retail chain owing its success to the tech-savvy staff, a wide array of product range, and a seamless Staged presence along with our signature Lifetime Service Assurance.
  7. Croma stores ensure every customer for a “Brighter Tomorrow”.
  8. With the intention of always keeping the customers happy, Croma launched its label products in 2008.Why to Choose the Croma Franchise ?

  • It has over 6000 products across 200 brands and has 500+ operational stores across cities in North, West, South and East India
  • It has 8.1 millions + customer base.
  • It provides good products with good services at a good discount.
  • It is one of the most trusted retail showrooms in India.
  • By owning this franchise, you can join with India’s big and trusted company of Tata Group.
  • Croma is used by most people to buy their electronic goods and appliances.

Croma Footprints in India

  1. Croma has 30+stores in Delhi NCR.
  2. It has 18+ Stores in major cities of Gujarat State.
  3. It has 40+ Stores in Maharashtra’s major cities.
  4. 3  Stores are in Kolkata.
  5. 12 +stores in Andhra Pradesh
  6. It has more than 16+ stores in Bangalore.
  7. More than 7 Stores in Chennai.

Eligibility to get Croma Franchise

Croma is one of the most reputable electronic store brands in our country. It will be a necessity for applicants to make proper investments and follow all the terms and conditions of such a reputable company. Here are the eligibility criteria and requirements for the Croma franchise:-

  • Applicants must have proper space which is between 8000 to 10000 square feet. Any kind of land whether it is on lease, rent, or own property will work. Make sure to land is located in a prime location where there is easy access to the general public. This area must have ample parking space.
  • You must be financially capable of opening a Croma franchise in India. A background check for your financial condition and capability will be done by the officials.
  • You must be a dedicated investor to get a franchise of Croma.
  • The minimum age criteria to apply for the Croma franchise is not below 21 years.
  • Make sure you have proper and updated personal documents, details, and bank account details.
  • Store operation, inventory management, manpower hiring, manpower training, and marketing everything will be handled by Croma. You are not allowed and will not be required to step into any of these areas.

Croma Franchise Cost

If you want to take Croma Franchise then you have to invest approx approx 2.5 crore to start this Croma Franchise. The investment for Croma Franchise bifurcation is given below-

Required Business Performance :

  1. Suitable Store property as per Croma’s Guidelines.
  2. Invest amount: Rs.2.5 Cr.
  3. Rs. 0.35Cr towards designing, PMC fee and +5 years maintenance charge.
  4. Rs.1.75 Cr as advance for inventory
  5. Rs. 04 Cr for renewal after 5 years.
  6. Security Deposite.

Earning of Croma Franchisee

Croma franchisee gets following benefits.

  1. The company’s Shares up to 5.5% revenue of total sales.
  2. Return of investment in 4-5 years.
  3. Return of Capital Employed (ROCE) 18%-20% in Years 3 onwards.

Profit Margin and Revenue Sharing of Croma Franchise 

As they offer franchises in the FOCO model, you can expect a healthy revenue and profit. If you make a sale of Rs 30 crore from Croma showroom in a year then the revenue share is 5.5%. If the sale is between Rs 30-40 crore then there is 3% of revenue sharing. If more than Rs 40 crore worth of sale in a year then you get 1% revenue.

For profit margin, if you make annual sale of Rs 24 crore then that multiplied by 5.5% will result to 1.32 crore. After cutting down monthly necessary investments like Rs 8 lakh rent for 10,000 square feet of land (expected). So, the total yearly rent would be Rs 96 lakhs.

Franchise income is Rs 1.32 crore – Rs 96 lakh = Rs 36 lakh. This would be your final profit in a year after opening a Croma franchise.

The total franchise investment is Rs 4.5 crore and the first year income is Rs 36 lakhs. So, the return on investment for 1st year would be 8%. Now, if you are opening your franchise in a rented land then you can expect a 16% return on investment per year. On the other hand, if you are running your business in your land then your expected return on investment would be between 25-40%.

Croma Franchise Complete Investment Breakdown

As you know, to start a business, proper investment is necessary. You must have 8000-10000 square feet of land to open their franchise. Mind you, here are some considerations for your Croma franchise:-

  •         Croma takes Rs 2300 to Rs 2500 per square foot for 10,000 square feet of land. So, the total cost would sum up to Rs 2.5 crore.
  •         Franchisees are also required to deposit Rs 25 lakhs as a one-time deposit, it’s a non-refundable deposit.
  •         Company takes up Rs 10 lakhs as maintenance charge for five years.
  •         Croma will also take Rs 1.75 crore as your advance for inventory.
  •         If your land is rented then you will be eligible to get a refundable security deposit of Rs 40 lakhs. This amount is not a fixed amount.
  •         After you give the non-refundable deposit, you already signed an agreement with Croma for five years. So, for renewal of the franchise agreement after every five years, you will need to pay Rs 40 lakhs.
  •         The total investment required to start a Croma franchise is between Rs 4.5 to Rs 5 crore.

Support from Croma Franchise:

A croma franchisee gets following supports from franchisor.

  1. Proper guideline for shortlisting Croma Store location
  2. Guidelines for store structure.
  3. Standardised Contracted  Vendors for store fixtures.

Croma Responsibilities

Croma takes the following responsibilities :

  1. Store operating cost
  2. Inventory management
  3. Supply of Manpower
  4. Marketing

Space Requirements for Croma Franchise: Usually Croma stores are spacious where customers can feel at ease without pummelling one another. Following point are put in mind for Croma stores.

  1. Minimum Space required for Croma Franchise  5000 sq ft. or  more.
  2. The space must be in the high footfall area or in prime locations like in Main market, City Centre, Super Mall etc.
  3. The area  will be firstly verified by the company’s team. After a visit, if a place is found  as per Croma guidelines, approval will take place.

Documents Required for Croma Franchise

  • ID Proof: Aadhaar Card, PAN Card
  • Address Proof: Electricity Bill, Rent Agreement or Property Tax Receipt
  • Photograph, Email Id, Mobile Number
  • Current A/C and cancel Cheque.
  • GST Number
  • Property details
  • ITR (last 3 yrs.)
  • Shop agreement / Sale deed/Rent Agreement
  • NOC

Croma Franchises Earning

A Croma Franchisee earning depends on the sales made in a year. For example- if a Croma Store  sold approx 24 crore in a year then  franchisee earning would be  approx 35 lakh to 36 lakh per year.

How to Apply for Croma Franchise

An eligible and interested candidate should follow the following steps in order to apply for Croma franchise.

  1. Visit the official website https://www.croma.com
  2. Clickon above link.
  3. Franchise form will appear.
  4. Enter the required details correctly.
  5. Verify the details and submit.

Note: Company franchise team will review the applicants details and if it was found suitable, an a member from franchise team will give a call back to applicant in a week or two’s.

Croma Franchise Contact Details

Interested and eligible candidates  can contact at below numbers or email address regarding franchise queries.

Website: www.croma.com

Franchise Form link: Click Here

Customer Care: 1860-266-27662

Email: [email protected]