• a. Carpet Area – 700 sq. ft. & above (Std. Size : 700-2000 sq. ft.)
• b. Frontal Side : Atleast 20 Ft. (Ideal Size : 20 ft+)
• c. Catchment : Highfootfall, Neighbourhood or Market Place.

1. Franchisee Invest as below: (excluding GST)

• a. Signing Fee – 5L (thereafter on every renewal – 3L)
• b. Store Fitout (including IT) – 10-15L
• c. Initial Inventory – 20-25L (this will increase in line with sales over time)

Other Franchisee Investment

• a. Security Deposit for the Property & Brokerage
• b. Store Launch marketing - 1.5L (50% spend by AVANEESH HEALTH CARE )
• c. Working capital equivalent to 3 months of expenses [(Rent + 1.5) x 3]
• d. Other incidental 1.25L (licenses, S/W Licenses, Uniforms, Stationary etc.)

Franchisee income:

• a. Gross margins on sales : initial GM% net of discounts and Franchise Royalty is expected to be 19-20%, may grow over period of time to 21%+. This is overall melted margin across all product categories.
• b. Non Merchandise Revenue (display/brand campaign Income) This will be case to case. Expectedly post 6 months of operations, this will business will start to the tune of 15-25K per day
• c. 50% Franchisee holder and 50% company from profit in urban. 60% Franchisee holder and 40% company from profit in semi urban

Franchise Expenses:

• a. Rent – at Actuals
• b. Salary – we expect for a team of 5 to 7 people, the payout per month will be about 1-1.2L (including Incentives).
• c. Electricity – Average electricity cost for a 500 sq.ft. store is expected to be about 10-15K per month.
• d. Other Expenses – 10-15K per month.
• e. Marketing: After initial 4 months, the franchisee needs to spend about 2-3K per month on digital initiatives.

AVANEESH HEALTH CARE team support to franchisee for store opening::

• a. Location Selection
• b. Catchment/Hustle reccee
• c. Store Design
• d. Project coordination and Support (civil & electrical can be done by franchisee basis design and specification docket by franchisee vendor, Signage and Fixtures to be procured by franchisee from Company approved vendors)
• e. Recruitment - Store manager and 2 pharmacist (total 3 positions)
• f. Franchisee Training – Franchisee will be trained by AVANEESH HEALTH CARE
• g. Franchisee Staff Training – All staff to will undergo 5+ days of training
• i. Store Assortment development – this is very critical and helps in optimizing inventory and maximizing sales.
• j. Set up of vendors for local deliveries & also for local procurement.
• k. Store Planogram and Display

AVANEESH HEALTH CARE Support for Ongoing Business Operations

• a. Dedicated Operations team (area manager and Territory Manager) to guide on business on a regular basis
• b. Stock Audit – Scheduled periodic stock audit to help franchisee manage stocks in store.
• c. Automated ordering process in System
• d. Franchisee Business portal – for smart business management.
• e. Dedicated support team for resolution of all concerns and queries.
  i. Merchandise & Supply
  ii. Accounts
  iii. IT
• f. Recruitment(help in hiring for replacement positions)-total 4 positions over a period of 5 years (this is over and above the support in hiring during store launch)
• g. Online Training App access – all staff to have access to online training app, and analytics will be provided to franchisee
• h. Ongoing trainings

Lockin Period for the franchisee – 5 Years.

Franchise Exit Support:

• In case of store closure due to profitability issue, Franchisee will have exit window post 30 months where company will provide following support
• a. AVANEESH HEALTH CARE to buy back stocks at 90% of cost value of stocks that are saleable, returnable & min. 40% of shelf life remaining.
• b. AVANEESH HEALTH CARE to buy back modular furniture at 50% cost which is not used for more than 36 months & should be in excellent & usable condition./li>
• c. AVANEESH HEALTH CARE to buy back Computers, ACs at 25% cost which is not used for more than 36 months, in excellent, operational & usable condition