How to Start Royal Enfield Franchise
How to Start Royal Enfield Franchise
Starting a Franchise business or acquiring a dealership of a brand has become very common among individuals as it gives them a head start in the ever-competing business world. However, acquiring the Franchise or the dealership of the top-most or a luxurious brand in the market that has developed its brand value since ages is a different story and success. If we turn our attention to the automobile industry and the two-wheeler sector, one name that stands at the top of every other brand in the sector is the Royal Enfield brand.
About Royal Enfield Franchise / Dealership
At the outset, Royal Enfield requires no introduction. It is considered to be a luxurious brand in the motorcycle industry and has laid its foundation way back in the year 1901. Ever since, the brand has had a presence of more than 120 years where it has strived and achieved success without any advertisements, as contrary to all the other brands in the market. Currently, the brand holds and leads in the motorcycle sector in various countries such as Japan, England, Germany, France, US, and so on. Acquiring the dealership of such a brand in India has been a dream for many individuals.
Royal Enfield is also the best-suited motorcycle in a country like India. Despite being considered as a luxury product, it does well in the bad road conditions in certain areas and has a long life as compared to other motorcycles out there. With its presence in more than 50 countries, Royal Enfield offers and sells various types of models in India. One of the commonly favoured models by Indians which is also economically reasonable for people is the ‘Bullet’. The brand also provides various accessories and even its own customised Royal Enfield clothes for bike enthusiasts.
Advantages of Royal Enfield Franchise
Generally, as Royal Enfield is a well-known brand, there is no doubt about the advantages that an individual would have upon having its dealership. However, apart from the brand value, there are other certain advantages as well that would benefit a dealer greatly in his/her venture.
The various advantages of acquiring the Royal Enfield Franchise are mentioned as follows.
- The Advantage of utmost importance for an individual with the dealership of Royal Enfield is the support and credibility that he/she is entitled to as a dealer. Thanks to the presence of the brand for more than 120 + years, Royal Enfield has developed great connections and has its presence in even the most remote places of the country. Hence, at any point of running the business, an individual will have access to all the support that is provided by the company.
- Royal Enfield does not have just product in its range, they have a variety of motorcycles such as Bullet, Classic, Thunderbird, Himalayan, Continental GT, and so on. A dealer can earn a lot of profit by selling any of the above-mentioned motorcycle. However, apart from the motorcycles, the brand also provides various other accessories that are beneficial and also necessary for bike lovers. This gives the dealership a lot of options and varieties of products to sell.
- Advertising and promotion play a very important role for every brand. Even if an individual acquires a Franchise of a well-known brand, he/she still has to take the necessary steps to promote the business in order to acquire the customers. However, for Royal Enfield, even the parent brand itself does not indulge in any advertisement, such is the demand of the brand. This plays a major role in the success of any dealership in India.
- The representatives of the brand assist an individual in setting up the dealership and also with the location of the outlet. An individual that is about to acquire the dealership does not have to do things on his own, instead he/she is provided with constant support and guidance by the representatives of Royal Enfield, this is beneficial on both the sides as it ensures that the brand is represented properly by a dealer.
Investment Required for Starting Royal Enfield Franchise
Investment decides the return on investment and the likely break-even ratio that an individual would achieve after acquiring the franchise or dealership. As it is a luxurious and renowned brand, the dealership fee or the total investment is quite high and goes in the range of 50 Lakhs to 1 Crore INR. This includes all the cost, brand fee, etc, whichever is necessary. Apart from this, the dealer is also required to pay a royalty percentage every month to the brand directly. The royalty fee is 5 % of the total monthly gross sale.
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Requirements for Starting Royal Enfield Franchise in India
To acquire the Franchise of Royal Enfield, there are certain criterions or requirements that one must adhere. The various requirements are mentioned as follows.
- The minimum area required to be eligible for acquiring the dealership of Royal Enfield is at least 4000 sq. ft or more depending on the location chosen by the individual. Further, the unitholder is required to have all the necessary provisions and planning for areas like main working area, parking area for bikes, a lounge for customers, an office and space to display merchandise will be required in the store.
- There is no specific mention with regard to the experience that the dealer may require or is required to have. The same can only be known by getting in touch with the representatives of the brand.
How to Apply for Royal Enfield Franchise in India
To apply for Royal Enfield dealership, there are various modes through which an individual can get in touch with the brand representatives. The best and recommended way is to visit the official website of the brand and go through all the details before applying for the Franchise or making any enquiry. By clicking on the ‘Become a Dealer’ option you would find all the details about the brand. The official website is as follows;
Depending on the location, the investment would vary between 50 lakhs to 1 Crore INR.
Yes, it is the leading motorcycle brand in its sector.
Yes, a 5% royalty fee is to be paid monthly
Around 4000 sq. ft.
Visit the official website of the brand, https://www.royalenfield.com/
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