BudgetBeauty EmeraldFranchise Sales Presentation

Background● Grooming is a fast growing, recession proof industry that enjoys over 10%

YOY growth.

● Zafar Khan promoter of BudgetBeauty brand has over 25 years business

experience, first as an business consultant then as an very successful

entrepreneur.

● BudgetBeauty Private Limited is an company constituted and headquarted

in Mumbai, India.

● BudgetBeauty began its business operation recently June 2013

● BudgetBeauty plans to build a global chain of salons in next few years.

Promoter has 40 years of experience in franchising system.

● BudgetBeauty is professionally managed.

● BudgetBeauty was formed to provide value-for-money services to retail

consumers that is by cutting out business frills and passing the benefit to

the retail patrons.

BudgetBeauty lovable brand mascot ‘Spiky’.

BB Emerald business concept.BudgetBeauty Emerald is build to wipe out unorganised sector in

salon business by combining MNC quality at local prices.

BBE is to be built as compact salon to cut down on capital

investment and monthly operating costs, benefits of which in terms

of operating cost savings are to be passed on to the retail

customers as way of lowest possible services tariff.

BBE competitive business advantage.● MNC quality at local prices services.

● Quality hair and beauty treatment formulations purchased in bulk volume to save on

costs, savings passed to franchisee partners.

● Access to national pool of hair and beauty talent from which franchisees staffing

needs would get serviced.

● Free training to franchisees local staff using web technologies.

● Consistent training to franchisees in best business management practices and to their

staff newer techniques, product usage, process protocol, soft skills and more.

● National brand.

● Experienced back-end team.

● Corporate tie-ups.

● Incentive program design to motivate staff for top performances.

● Pre-production and pre-fabrication advertising design and artwork provided free of

charge to franchisees.

● Constant financial health monitoring and corrective actions suggestions is made.

● Guidance in acquiring bank loan, leased premises and more.

BBE target customer profileYoung tight budgeted fashion conscious female and fashion conscious male. (Non

style conscious customers are not the primary target of BBE).

Those who dine at MacDonald, buy their groceries at Big Bazaar kind of stores are

prime target customers of BBE.

Hairstyles 2013

For every 20,000 population a salon is required. Frequency of Salon visit is once every 45 days

Training PoliciesIt is mandatory that staff hired for BudgetBeauty Salon are screened,

graded, and trained by BudgetBeauty Corporate Office.

We will depute our corporate trainers from Mumbai however the franchisee

will need to directly bear their out of pocket cost such as Air Travel, Lodging

and Boarding for a week.

Franchisees can also opt to arrange video conferencing based training at

their end. The training feed provided from our corporate office is without

obligation and same is imparted as per need.

Architectural

drawingsThe corporate office provides standard architectural drawing

as part of the package.

The franchisee needs to get the target premises measured

and measurements converted to an Autocad drawing at their

end. They also need to take pictures of premises externally

and internally.

Empanelled design and design audit architects list will be

provided the franchisee will need to source their design

adaptation from them upon paying recommended design

adaptation and design audit fees.

Staffing BBE franchisee needs to hire pre-approved staff locally or from

our national pool of staff. As a BBE franchisee you will need one

senior and two junior hairstylist, one senior beautician and one

junior beautician. You will also need cleaner.

Franchisee should manage their salon on day to day basis to

ensure customers are promptly attended, salon consumables are

timely replenished and local promotion is carried out.

Retail Pricing StrategyThe base unit price for availing of any services is Rs. 149/- Only.

This includes local taxes.

Haircut Rs. 149/-

Blow Dry Rs 149/-

Head Massage Rs 149/-

Hair Straightening by Hair Ironing Rs 149/-

Beard/Mustache Trimming Rs 99/-

Eyebrows shaping. Free if taken with any other service on week

days only etc.

Detailed tariff on request.

Brand CommunicationMarketing, Advertising, Sales Promotion are to be carried out in accordance the

franchisers brand rule book. Pre-press/Pre-fabrication advertising design and artworks

are provided upon request and as per need of the franchisee partner and without any

extra cost.

It is mandatory that franchisee promotes and provides 7 days of free trial services to

carefully selected target groups at time of their Salon inauguration.

Franchisee is expected to publish one advertisement from provided artwork in their local

daily announcing the inauguration of their salon.

Ideal LocationThe ideal location to select for building your BudgetBeauty Emerald Salon would be any

area that has a natural retail footfall catchment area such as a Mall, Shopping Plaza,

Bus/Railway Terminus/Airport waiting room, Universities, Colleges, Courts, Large

Hospitals, City Square, Retail High Streets, Next to Mac Donalds/ Cafe Coffee Day etc.

Close to Large Format Big Bazaar. It is advisable to pay a little extra for prime retail

space as it pays for itself in the long run.

Ideally your retail lease rental budget should not exceed Rs 75,000/- per month. Lesser

the better. Try to enter into a lease agreement for a period of 5 years.

Time-LineIt takes around 60 days from date of payment realisation

to building and inaugurating your salon.

For staffing please inform 30 days prior to inauguration.

It will take 45 days to build and ship your ready to

assemble kiosk from mumbai/ If it is a shop model and

fabrication is involved then franchise will need to

execute the fabrication part locally.

Our requirements:1. You should be willing to make necessary capital investment.

2. Be in a position to operate your salon according to our rules and regulation on a day to day basis.

Description Amount Comment

Franchise Establishment Fees 5 Lac Paid once prior to contract

signing.

Territory Reservation Deposit 1 Lac Refundable and non interest

bearing.

Royalty Payment As per your

built up

capacity

Computed as Rs. 15000/- plus

Rs 3000/- per styling chair.

You will need to make provisions for lease rental deposit, cost of interior, cost of tools and

equipment. Pan-India average to build a BudgetBeauty Emerald Salon is around Rs 13.5

to Rs 20 Lacs all said and done till Inauguration which completes Phase I. In Phase II you

will incur only operational expenses.

Contract period is 5 years, renewable upon mutual consent and by paying franchise

renewal fees of Rs 2.5 Lacs to acquire renewal of next tenure of 5 years.

Profit estimationDescription Amount Comment

Pan-India average

sales of a branded

salon

2.5 Lac pm To arrive at projected steady

state sales it would take

around 18-36 months.

Average Monthly

Operating Expenses.

1.5 lac pm Includes all kinds of

operating costs, such as

salary, rent, electricity,

royalty, mainrenance, phone,

stationary and refreshments.

Profit Estimation 1.0 Lac pm Profit before taxes.

Above figures differ from city to city, area to area and seasonality of sales.

Start-up cost

Figures will vary from city to city and area to area.

Above figures are given to form an fair idea. Taxes extra as applicable

Sr No Description Amount in Lacs

1 Franchise Establishment Fees 5.0

2 Territory reservation deposit 1.0

3 Lease Deposit (As per your negotiation) Budgeted 2.5

4 Interior Fabrication Cost (Managed locally) 7.5

5 Equipment and Tools etc (Purchased directly) 2.5

6 Contingency Budget 1.5

Total 20.00

Territory reservation rulesBetween two BudgetBeauty Emerald Salon 2 km distance shall

be maintained as reserved territory so that franchisee partners

could reap rich rewards from their own effort upon development

of their own territories.

However, Malls/Airports/Railway Platforms/Star Hotels are

treated as an universe unto themselves and are an exception to

the road rules.

While calculating distances between 2 salon, measurements

shall be taken from Google Map Satellite Image and distances

are measured by plotting on scale by tracing a road route as a

vehicle would travel.

Photo gallery

Proud BudgetBeauty Orange Hairstylist

shows off his mark with splendour at Mumbai. 2013

Photo gallery

BudgetBeauty Staff Celeberate their grand success...301 haircuts in a single day from 11

styling chairs. Staff seen enjoying their success at a party held in their honour...

Photo gallery

BudgetBeauty Salon Staff line up to march for greater success...seen here celebrating and

bonding to set new records in productivity...

Zafar Khan, has 30 years plus rich experience in

building brands and franchise from scratch to

success.

Zafar heads BudgetBeauty budding chain as its

CMD.

Zafar contributed in no small measure to building of

HairXpreso chain, Jetking Infotrain etc.

BudgetBeauty has 2 super successful operational

salons at Mumbai. 100 more are on the anvil.

You can contact him at:

09167332890/ 02265112112. Email:

atlantisimc@gmail.com