Would you like to open a clothing store? If the answer is yes, you may be interested in knowing that you have an option thanks to which you don’t have to start from scratch.
You can exploit a known brand, have the main company support, and attract customers that are already familiar with the products. We are speaking about the Zara Franchise.
By joining the Zara franchise program, you have the possibility of opening a Zara clothing store, using the Zara name brand, and selling their products while remaining the owner of the store.
Keep on reading to find out everything you need to know about the Zara franchise.
About Zara Franchise
Zara is a Spanish clothing chain that is present all around the world with its stores.
They are specialized in fast fashion, a style that reproduce catwalk trend, and mass-produce them to distribute them to a massive audience.
It’s called fast fashion because the production starts quickly so that the clothes can be soon available in the stores when the demand is still at its highest.
Zara is also focused on keeping the items affordable: high fashion inspiration and low prices are the key elements that have made this brand so successful.
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History Of The Zara franchise
Zara was founded by Amancio Ortega in Galicia in 1963. The peculiarity of the brand has always been the same: the company used to replicate high-end fashion clothes at a lower price.
In the 70s, Ortega was ready to sell his collections outside of Spain: he started opening stores in Europe, and then, in the 90s, he arrived in New York.
The term fast-fashion was created during this time when Zara was becoming a phenomenon, and journalists were trying to describe it.
Because their production lines are so fast, they’ve always been able to adapt to change, new trends, and higher or lower requests, and they were also capable of getting back into business after the pandemic.
Today, Zara is still one of the most successful brands in the fast-fashion market.
Zara Franchise Business Model
Zara is a franchise, and it is always open to franchise application submissions. Candidates are carefully evaluated, and after the dale is signed, they can become owners of their Zara store.
| Business Model | Clothing stores franchise |
|---|---|
| Initial Investment | $80,000 (including fee) |
| Franchise | YES |
| Franchise Fee | $30,000 |
| Number of outlets | 3000 |
| Annual revenue | € 19,586 million |
How Much Does It Cost To Open A Zara store?
When opening a new Zara franchise store, you are required to pay a franchise fee: it’s $30,000.
It’s quite high, but you need to pay for it only once and, after that, the store is yours. The contract does not need renewals.
After that, you need to consider the costs for the rent of the locations, the gear, the furniture, the employees, and the inventory. These costs are estimated at $50,000.
That said, if you want to open your Zara store, you’ll need a total minimum initial investment of $80,000.
Zara Franchise Revenue & Profit
The revenue and profit for a Zara franchise may fluctuate depending on the store size, location, operational expenses, etc.
Since the company has not revealed the financials of its franchises, the revenue and profit of Zara’s franchises are not known.
Zara Company’s Revenue
Zara owner Inditex reported a 27% increase in net profits for the year 2022.
The online and in-store sales for the brand reached $34.99 billion, which is 18% more than the sales of the previous years.
Requirements
Zara accepts franchise candidacies from people who:
- Possess an inclination toward the sector
- Have high-quality communication skills
- Can count on at least 9-10 collaborators.
Training & support
Zara provides a lot of support to those who are interested in getting into business with them as franchise partners.
Support and training are about marketing, products, brand values, and selling strategies.
Terms Of Agreement & Renewal
The initial franchise fee is the only one that is required. That fee allows you to open the store, use the brand name, and sell Zara clothes. There is no need for further renewals.
Obligations & Restrictions
When you open a Zara store, the business is yours, but you have some restrictions established by the main company: for example, you can only sell Zara products in the store, you need to maintain certain quality levels, and so on.
All the obligations and requirements are specified in the franchise contract you sign with the main company.
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Financial Assistance
Zara franchise provides some form of financial assistance. It is, however, provided by third parties.
Comparison Franchise: Zara VS H&M
| Company | Zara | H&M |
|---|---|---|
| Founded | 1986 | 1947 |
| Number of Outlets | 3000 | 4800 |
| Franchise Fee | $30,000 | None |
| Franchise | Yes | no |
Conclusion
Opening a Zara store can be a good investment. It is a big investment, but it’s still affordable, especially for a clothing store that is expected to welcome hundreds of clients per week.
Zara Franchise: FAQ
Is Zara a franchise or a chain?
Zara is a franchise. It means that you can pay a fee and become the owner of a Zara store.
Who is the owner of the Zara franchise?
Marta Ortega is the current owner of the Zara company. She is the daughter of the founder, Amancio Ortega.
How many Zara outlets are currently there?
Zara can count over 3000 stores spread all around the world.
Is the Zara franchise a good investment?
The Zara franchise is a good investment because Zara is one of the most-known clothing brand names for the average customer.
It means that you can expect clients to come to your store from the very first day; they’ll already know the brand, and half the work is basically already done. Profits will arrive quickly.
Is the Zara Franchise worth it?
The Zara franchise fee is quite high, but it is still worth it. With that fee, you are paying for having the possibility of selling Zara products and using their brand name in your store.
Using their products and name is a huge advantage when you open a store.
It’ll be super easy to find new clients and get them affectionate with the brand and store. It means that the return on investment can be high and fast.
Reference: How to Get Zara Franchise [Cost, Profit & Process] – businessmaza
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.