Requirement to Open Zara Franchise

I chose to buy Zara franchise business, becausea I think business with a franchise system is
easier (practical) to run than building a business from scratch. Until now, Zara is known by
many people and has loyal customers, so I do not need a hard effort to build brand and image
to be known by many people.

Zara’s first store was estabilished in 1975 in Corunna, Galicia, Spain by Amancio Ortega and
Rosalia Mera as a brand of inditex group which stands as the largest apparel retailer in the
world. Zara is one of the franchise companies who are present almost all around the world.
Zara can be seen in over 88 nations that is currently it has a network of more than 2100
stores.

Designing a plan, including:

1. Benefits of Joining Zara Franchise

a. The amount of profit we can make are enormous. Zara estabilishment plan of
action use a slogan “High fashion at affordable price”. Then Zara always boast of
low prices for its ever-gorgeous designs and also work quickly on feedbacks
received from several store managers all over the world.
b. Zara franchise business addopts flexibility principles to adjust whatever complaint
received from its customers.
c. Zara franchise business provides full access to corporate services, such a training,
human resources, and logistic at no extra cost to all its franchisees. To return up
to 10% of merchandise purchased.
d. Zara franchise usually begins to reap profit at the end of first year. If there is
(unusual) debt accrued one the start-up cost, that would be definitely be recovered
not later than the end of the third year.
e. Iit is also shown that becoming a franchisee is premised on some factors and
background knowledge on modus operandi and scorecards of the franchisor.
f. Zara franchise remains one of the world best, no doubt. In 2015, it was ranked
30th in on Interbrand’s list of best global brands in terms of is products lines,
product affordability, excellent distribution mechanism, international expansion,
unfailing logistics, training offered, excellent feedback to customers, human
 resources management, highly experienced workforce and designers, affordable
start-up cost to become a franchise especially, timely delivery, varied modern and
in-vogue designs, access to return merchandise purchased among others.
2. Cost and Fees
 Franchise Cost : The total investment or in other words the startup costs for
opening a Zara franchise is around $80,000.
 Royalty Fees : It is about 5-10% I need to pay as royalty fees
 Advertising Fees : Besides startup cost and royalty fee, I also have to bear 0.3%
for advertising fees.
3. About Government Regulation
The Franchise Regulations require both me and Zara’s franchisor to obtain a me and
Franchise Agreement which then get the issuance of STPW (Surat Tanda Pendaftaran
Waralaba).
4. Meet the Franchisor
Meeting the franchisor is a way for me to understand more specifically about Zara
franchise business purchases, about Zara's rules and policies, Franchise License, and
other informations.
5. Choose a Location
I will open Zara outlet in Purwokerto, precisely in Rita Supermall Purwokerto.
Running a business in a mall can be very profitable, as many visitors come to it.
Moreover, the mall often holding certain events.
6. Recruitment of Employees and Provision of Salaries and Wages
Maybe, I need about 10 employees including 3 cashiers with an employee salary of
IDR1700000 and IDR2000000 for cashier's salary.

References

http://www.practicalbusinessideas.com/zara-franchise-business-ownership-start-cost/
http://www.hukumonline.com/klinik/detail/cl2928/prosedur-pendaftaran-prospektus-dan-
perjanjian-waralaba