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In the last few months, we have witnessed rapid change and development in the laundry and drycleaning industry. Looking at the scope of growth and market share in the Indian market, a lot of entrepreneurs have started investing in the “Franchise” models of the Drycleaning & Laundry brands. Most of these potential entrepreneurs or as we call them “investors” compare the cost of Business establishment to the cost of Equipment.
Now let us understand what is Cost of Equipment first.
POV: Laundry & Dry Cleaning Business.
To start a Laundry & Drycleaning business, you have to set up a store with some basic equipment to run the operations. Those basic equipment mostly consists of Washing machines, Dryers, Iron setups, some exclusive infra, a store reception, billing system, etc. The expenditure made to get all this together is the Cost of Equipment.
Now, when everything is set, the real game begins when you must plan the sales, operations, marketing, data analysis, market research, Application, web promotion, and a lot more than that. Brands come with a well-equipped team with the right expertise, years of experience, knowledge, information, tech update and what not!
This is where a huge business establishment cost is involved. Most of the brands charge a justifiable fee to help small business owners to establish their business under the Brand’s name. That’s exactly what a Franchise Fee is for. That’ what Brands charge their royalty for.
So when potential entrepreneurs argue on why they should pay the extra cost, what is your take?