Outlet is a term that for some years has entered the common use in Italy as well. Compared to a few years ago, when it was completely synonymous of company outlet, the outlet took on its own characteristics, becoming the way to define a store with quality goods at a discounted price. So why not choose this type of activity and open a franchised outlet ? I’ll tell you where to start.
Opening a franchised outlet: what do we mean by outlet?
In the common language, an outlet is a point of sale where it is possible to buy different types of products at reduced prices compared to the list price. For outlet, however, we intend both the single shop and the shopping centers that group more outlets. The products sold in outlets are the most disparate: ranging from clothing , accessories, passing equipment and sportswear, food or products for children.
These are actually just some examples of outlets; in fact, potentially every brand and type of product lends itself to sale with this commercial formula. The single-brand outlet stores are very widespread , selling only one-brand products. However, even the multi-brand outlets are not rare, which therefore offer products of different brands, sometimes accumulated by type (for example, clothing outlets or household products).
As you will have understood, the outlet scene is very varied; the choice of the best idea for your franchised outlet then depends on your preferences and the type of goods you believe will be more successful in the area where you are thinking of positioning your store. In a few paragraphs I will show you some ideas I recently found to open a new franchise outlet. But now I would like to focus on a very important aspect for a new store and that is the choice of space.
The choice of store: size and location
We start from the dimensions: to open an outlet there are no minimum dimensions of the store to consider. However, please note that it may be the franchisor himself who requires minimum features for the point of sale. The square footage you will need is very variable. A determining factor is the type of goods sold. For example, if the outlet deals with products of different types, you will necessarily have to consider shops with important sizes and equipped with a sufficient stock .
For products that are less cumbersome or easy to store, such as non-perishable food, the measurements can be much lower, starting from a few tens of square meters. If you are dealing with clothing, consider also that you have enough space to display your clothes appropriately, and also calculate a few square meters for the fitting rooms or living rooms.
In case you want to open an outlet intended as a set of shops, obviously the square footage that you will have available will be exponentially greater. However I will not consider in this guide the type of outlet / shopping center , because I would like to focus more on franchise outlet proposals, which very often concern the opening of a single store, single-brand or multi-brand.
How much will I have to invest to open an outlet?
The opening of a franchised outlet requires a fair amount of capital, which depends to a large extent on the type of store you wish to open. As you will see in the next paragraph, and requests from franchisors are very different from each other, and vary depending on the type of product offered and the services included in the initial investment. Whatever the sector, keep in mind that you will have to face an initial investment of about 15,000 euros, to which other business costs must be added. A sum of 20,000 euros is therefore a good starting point for an adequate investment .