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  • Hi Fashion Franchise Business: New Vs Existing: Qualitative Comparison

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    tirth vira
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    Buying an existing franchise parlour is lower risk than building a new one from scratch. An existing parlour is located in a hot spot area with an established customer base and trained employees. The revenue and margins are predictable based on past performance. In contrast, building a new parlour requires developing awareness, hiring and training new staff, and there is uncertainty whether revenue and margin projections will be achieved. As Subbu is risk averse, buying an existing franchise is a more attractive option than attempting to build one from the ground up without prior experience in the business.

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    Hi Fashion

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    Buying an existing franchise parlour is lower risk than building a new one from scratch. An existing parlour is located in a hot spot area with an established customer base and trained employees. The revenue and margins are predictable based on past performance. In contrast, building a new parlour requires developing awareness, hiring and training new staff, and there is uncertainty whether revenue and margin projections will be achieved. As Subbu is risk averse, buying an existing franchise is a more attractive option than attempting to build one from the ground up without prior experience in the business.

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    17 views1 page

    Hi Fashion Franchise Business: New Vs Existing: Qualitative Comparison

    Uploaded by

    tirth vira
    Buying an existing franchise parlour is lower risk than building a new one from scratch. An existing parlour is located in a hot spot area with an established customer base and trained employees. The revenue and margins are predictable based on past performance. In contrast, building a new parlour requires developing awareness, hiring and training new staff, and there is uncertainty whether revenue and margin projections will be achieved. As Subbu is risk averse, buying an existing franchise is a more attractive option than attempting to build one from the ground up without prior experience in the business.

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    Qualitative Comparison

    Hi Fashion Franchise Business: New Vs Existing


    Build New Parlour ( Year 1 as
    Buy Existing Parlour
    Parameter basis)
    Sub-urban. Need to build store Hot spot area; Unlikely new
    Location awareness competition will come up
    High starting point from existing
    Build step by step
    Customer footfalls/revenue busines
    Identified stars and established
    Train and create expertise/stars
    Employee competencies
    New recruit and opportunity to Existing employees. Need to/risk
    Employee alignment mould to our line of thinking in alignment
    Marketing Build business from scratch Build business from a high point

    Learn from past trends/experinces


    Learn from basics
    of store manager/employee
    Business Operations
    Very high. Revenue and margin Low risk . Predictable Revenue and
    projection will have to converted margin. Need to build from
    Risk from paper to reality current base
    Due Diligence Of locality potential Of existing business

    Looking at the net profit and other qualitative data where most of the factors are in the favour of
    buying the existing business given that Subbu is a risk averse person, buying the franchisee looks like
    a much more attractive option than building it from scratch. Going ahead with a franchisee would be
    better also because not having a prior experience in the business would not be a good thing when
    things are supposed to be started from scratch.

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