A supermarket is a grocery store or it is like a self-service shop with a wide range of edible products like food, beverages and household products. It has a wider selection organised into different sections. There is also a big fresh collection of meat, dairy and bakery items and so many other things are available.
It is all about the term Supermarket. Now let’s discuss the terms. the franchise is a kind of marketing concept adopted by the centre or by a particular person for business expansion. Now we know about the term ‘Supermarket franchise‘.
Table of Contents
- What is Hyper Supermarket Franchise
- Outcomes Provided By Hyper Supermarket
- Hyper Supermarket Franchise Based on Two Models
- Different Kinds of Hyper Supermarket Franchise
- Role of Franchise
- About the Agreement Duration
- Difference Between FOFO and FOCO Model
- FOFO V/S FOCO
- FAQ on How to Start Hyper Supermarket Franchise
What is Hyper Supermarket Franchise
Hyper Supermarket handled by Supermarket sector in India running 35 stores. it is an online grocery store chain. It was founded in 2011 by Arman Patel. Hyper Supermarket’s first franchise was taken by Delhi NCR.
Outcomes Provided By Hyper Supermarket
- Frozen Products (Food And Vegetables)
- Health Products
- Beauty Products
- Grocery Products
- Fashion Accessories
- Fresh dairy products like curd, milk, butter
- Availability of 20,000 products with 15,000 brands.
Nowadays online grocery store chain is the biggest Supermarket retail business running in India and day by day it’s growing rapidly. Many peoples are getting employed by this hyper Supermarket franchise.
Most of the companies want to grow their business on a high level but they are not able to present in every city at the same time so they applied the exploring technique in another way called franchise to sell their products and to enhance their company on a broad level to enhance the network.
So they help with a technique called a franchise. They make new customers by opening the new branch in different cities.
Hyper Supermarket Franchise Based on Two Models
Franchise Owned Franchise Operated ( FOFO )
It is a franchise-owned franchise-operated technique. If you want to go through this model first you have a good location by minimum 300 square feet area.
FOFO model also includes some fees also. The company takes an amount of 3 lakh with 18% GST and sometimes it also includes some other applicable charges. In this model, there is a good possibility of income.
When we come to revenue, applying this model you will get 10% on sales. All the expenses like rent, electricity and salary of staff will be borne by the hyper Supermarket.
Franchise Invested and Company Operated ( FOCO )
It is a franchise invested and company-operated business model. If you are going through this model then you require at least 300 square feet of area and it takes 3 lakh franchise fee excluding GST and set charges of 5000 although the amount you invest as set up charge is refundable and it is according to the agreement with the company.
Here you have to pay royalty to the brand. All the expenses abide by you and you get the actual profit on vending.
Different Kinds of Hyper Supermarket Franchise
Hypersupermarket retail brings a new deal with a new zeal on a daily basis. Many products serve millions of people in India. The hyper group follows the simple idea of leading rewrite rules and retaining values.
This process tackles the minds of people and creates a new kind of market in both the field like online and offline. They are improving their quality day by day and serve the best to customers.
Hyper Every Day: It includes Grocery, Frozen, Bakery, Diary, Staples and kitchen items etc. It requires 200 square feet to 1000 square feet of area.
Hyper Supermarket: All kinds of edible things are available. It requires 1000 square feet to 2000 square feet of area
Hyper Digital World: It is mainly focused on electronic items. It requires 200 square feet to 3000 square feet of area.
Hyper Stationery: Schools, Colleges, official things are available. It requires 200 square feet to 1000 square feet.
Role of Franchise
- The franchise has to pay all the employees
- A franchise can buy products from the company.
- Set up according to company design.
- The franchise has to pay all the bills like electricity and rent.
- A franchise can take action when required.
- The franchise has the right to manage its staff.
About the Agreement Duration
Hyper Supermarket franchise is based on five years of the agreement after five years it is renewable as like
- FOCO Model: 5 years of the agreement.
- FOFO Model: 5 years of the agreement.
Difference Between FOFO and FOCO Model
The FOFO model the franchisee owns and runs the business at its selected location. It has complete command over daily operations.
The FOCO model completes actions managed by the owner and the current cost abide by the brand, that’s why the franchise gets less guarantee of revenue in return.
FOFO V/S FOCO
According to Morris Chang, CEO of TSMC “ without a strategy, execution is aimless and without execution, strategy is useless”. From company to company, as they want to expand their business the way of handling business is always different or we can say that models under franchising are always different.
Some are recommending FOFO and some prefer FOCO, just to expand and explore their business they choose the models according to their need and comfort.
Focusing on which business model is more profitable! Ajay Nihalani, CEO of Gitanjali Lifestyle Limited says “ The FOCO model for us is more enterprising and promising as the jewellery sector is at a what would we call a very interesting phase”.
In the FOCO model, the franchisee owns the brand store but managed by the company itself but in the FOFO model, the company permits or allow the rights to the franchise to further exercise control and arranged the brand things as per the guideline by the franchisee.
So we can conclude by saying that before taking the hyper Supermarket franchise you have to demonstrate a passion for the field, access to appropriate real state and you should have good experience in terms of grocery store manager. If you are having all these skills then you have the potential and full zeal to run this business.
Hyper Supermarket is a growing business in India with less risk and good profit. Hope you like my article if you have any query or doubts regarding you can leave a comment in the box given below.
FAQ on How to Start Hyper Supermarket Franchise
What will be the Hyper Supermarket Franchise Cost
Hyper Supermarket Franchise Cost minimum ₹300000 required for FOMO model.
Who is Hyper Supermarket Franchise Owner
Arman patel is the owner of hyper supermarket.