jawed habib hair and beauty salon franchise offer

JH - Hair and Beauty Franchise Proposal

Zafar Khan Auth. Master Franchisee for the States of Tamil Nadu and Kerala. Offer valid till 31st March, 2017.

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SYNOPSISJawed Habib a deemed limited company, having its head office at Mumbai, is a professionally managed company with vast business operations in hair and beauty aesthetics category. Operational 500 franchised centers in over 22 States and 100 cities in India and Overseas employ over a staggering 2500 personnel directly or indirectly under the brand. This makes Jawed Habib a commendable player.

Franchisees need to make a Capital Investment of around Rs 30 Lacs or so. The JHHB would employ 3-6 hairstylist and 2 to 3 beauticians. Jawed Habib ideal franchisee partner needs to be a hands-on person in managing every day customer experience and a good leader of man in terms of staff motivation. Prior knowledge / experience is not necessary.

Ideal location would be a ground floor in prime retail area/ mall/ shopping plaza/ close to Mc Donald type restaurant/very large 5 star hospital next to book store etc.

As a franchisor we provide a host of back-end support besides brand leasing. In its steady state of business a Jawed Habib Salon with due effort from its ‘franchisee-owner-manager’ an attractive 60% ROI is within realistic reach.

Franchise Enq: Zafar Khan Auth. Master Fran. Tamil Nadu-Kerala Mob: 09167332890 38/22/2016

Industry Scenario and Market Scenario.Industry Scenario:

Market Scenario:Jawed Habib Hair and Beauty has grown from 1 to 500 strong centers in short 7 years since inception. The brand continues to grow through wide network of Master Franchisees through the Country. On an average Jawed Habib Salons do a business between Rs 300,000/- to Rs 600,000 per month based on season etc.

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The hair and beauty industry experienced tremendoussurge in growth and has reached its early maturity phase. Jawed Habib brand through its focus on Hair Specialization offers differentiation from other brands. For convenience of customer Jawed Habib Hair and Beauty ALSO offers beauty services. But the brand’s specialty is hair fashion services. As a JHHBS franchisee partner you will enjoy competitive advantage from day one.

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Jawed Habib Academy.



In a Rs 400/- Haircut at Jawed Habib, cost of material used is only Rs 15/- This gives you a business with 185.54% profit margin. This is astounding profit margin.

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YEAR 1 YEAR 2 YEAR 3

30

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6

12

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Jawed Habib Hair and Beauty Financial Projection on a conservative scale. Sky is the limit if franchisee partner

commits himself to his growth.

Sales Expenses Profit

Figures in Rupees Lac


Key Financials

• It takes around 60 days to build and inaugurate a Jawed Habib Salon but it takes another 1000 days to get the business well established and flourishing. This time can be considerably reduced by half or so enterprising franchisee who dedicate their time and effort to make their salon well known in their locality and build immense good will for the brand they have so leased from Jawed Habib Co.

• We have observed well performing franchisees are capable of achieving monthly sales between Rs 3 Lacs to Rs 6 Lacs in steady state of their business cycle.

• Target to get an strategically located place for around Rs 50,000/- to Rs 100,000/- rent per month and no more. Discount this figure by 30% for Non-Metro Cities.

• Target to earn 60% ROI ( Return on capital investment) in Steady State of your business.

Auth. Master Franchisee for Jawed Habib Tamil Nadu and Kerala. Mr. Zafar Khan Mobile: 09167332890 12

JHHBS Architectural Rendering

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Architectural Rendering

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Architectural Rendering

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Price Leadership

Differentiation Focus

Michael Porters 3 Generic Business Strategies.

Jawed Habib Brand Offers Full Hair and Beauty Services However the Brand is Built upon Focus. Its Focused to Hair Fashion.


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Jawed Habib means Affordable Luxury


Support Provided to Jawed Habib Franchisee Partners

Deliverables DerivativesBrand License Instant brand recognition by retail customers.

You inherit a rich brand legacy. Land lords/ Bankers more willing to transact business. Prospective staff aspire to work for a recognizable brand.

Centralized Staffing and Training

Screened, graded and trained staff are provided on quota system.

Advertising and Sales Promotion

Unlimited and as per need Pre-press and Pre-production Advertising Artworks are provided for Online and Offline Media Advertising to be carried out by franchisee partners at their local level and at their own expense.


Contd…Support Provided to Jawed Habib Franchisee Partners

Deliverables DerivativesSite Evaluation We will remote asses site for viability based

upon provided input. Franchises are guided on how to identify strategic site.

Architectural Plan Detailed Architectural Drawings are prepared to suit available space. Franchisee need to furnish dimension in AutoCAD only. This ensures Jawed Habib look and feel is maintained.

Territory Plotting Territory is demarcated using Google Mapping. This ensures Franchisees to enjoy fruits of own labor once they have suitably developed the Territory.

Volume Rebate We have tied up with International Salon Consumables Manufacturers who not only provide special rates factoring in volume purchases by the chain of Jawed Habib Salons but also provide Product Usage Training.

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Franchise Fees (JHHB). Contract Period.

Description Amount 3 years from date of inauguration

Franchise Establishment Fees (Paid Once)

Rs. 7.5 Lacs

Royalty (Fixed Paid Monthly) Rs. 30,000/-

Taxes Extra as applicable. Please ask for Tier II City Discounted Rate.

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Disclaimer: Above will vary according to size of store, city to city and area to area. Barring franchise fees rest is all given as provisions to be madeTaxes always extra as applicable.

Start-up Capital Investment- Estimation.Franchise Fees (Paid to Jawed Habib Office)

Rs. 7.5 Lacs

Provide at your end for salon interior Rs. 15.50 Lacs

Salon Inventory Provision Rs. 2 Lacs

Provision at your end Lease Rental Deposit.

Rs. 5 Lacs

Total Rs. 30 Lacs

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There is something special about a Jawed Habib Haircut…

Franchise Enq: Zafar Khan Auth. Master Fran. Tamil Nadu-Kerala Mob: 09167332890 24

Repeat sale at your end is guaranteed!Once satisfied a person never

change their hair stylist.–Says Mr. Jawed Habib. Living hair fashion legend.

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Time Line• Once the prospective franchisee takes a positive decision, it takes around two weeks to execute the franchise

contract.

• Once the contract is signed it takes two weeks to provide the recruited franchisee with their complete interior plan.

• The franchisee takes around 45 days to fabricate their salon.

• It takes around 30 days for joint effort between Jawed Habib and franchisee partner to yield staffing results. Jawed Habib has full fledged Human Resources Department at Mumbai which sources staff on behalf of franchisees from their available national pool whereas Master Franchisee lends helping hand through the Regional Office situated at Chennai and Dual Staff training Centre's at Chennai-Vadapalani and Kerala-Tirussur.

• All in all it takes around 60 days from date of signing and effecting payments to get salon inaugurated.

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Competition and Competitiveness

• Competition comes largely from unorganized sector local salons and beauty parlors, and to some degree from other branded chains. The attractiveness of the market space attracts many competitors big and small.

• Jawed Habib is differentiated by its brand perceived in the consumers mind as super hair aesthetic styling brand. And this aspect makes the brand stands apart from one and sundry.

• Strategically retail priced hair and beauty services which is not too cheap or not too expensive attracts customers to come and try and with effort of caring franchise partners and their staff the customer soon turns into a regular patron.

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Bank Loan Support

• The Master Franchisee on payment of certain fees shall undertake to prepare a ‘Bankable Business Plan’ which will detail CAPEX, OPEX, CASHFLOW FORECAST, CMA DATA and more. As further support the Master Franchisee shall undertake to satisfy the bank upon their technical financial enquiries.

• Most of the Bankers in todays time are willing to extend an Bank Loan on easy EMI repayment terms that would stretch to a good 7 years bringing down the monthly burden to less than the cost of a good hairstylist.

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Why Jawed Habib in Nutshell• More than 40 entrepreneurs have bought their second or

third Jawed Habib Salon Franchise, repeat purchase is rock solid proof of brand efficacy.

• Since last 7 years the brand has grown from first salon at Mumbai to over 100 cities crossing 20 States.

• More than 500 Jawed Habib Salons and Academies combine bear silent testimony to brand lure to retail customer-patrons.

• National and Regional Pool of Staff.• Jawed Habib business processes and procedures are time

tested and well established.• Jawed Habib Business Success Formula is Pre-tested and

Pre-tried by 100’s of Franchisees.• Jawed Habib brand is widely recognized building consumer

confidence.

• New comers are guided at every step of the business to get well established, overcome teething period, get well settled with staffing, acquire cutting edge cost-effective advertising creative design and brand communication artworks.

• Free staff recruitment support (Quota System).

• Cost sharing on Organic Social Media Advertising and facilitation on Inorganic Social Media Advertising Purchase by Franchisee.

• Press – relations support by making available Mr Jawed Habib’s time to media correspondent, providing an array of Press Relations material to create own local Press Kit.

• Remote space evaluation services and more

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Your next step

• Make your decision.• Request for our commercial term sheet.• Visit Mumbai HO for signing documents.

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