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FRANCHISE PROPOSAL

Harshansanjay's
Date of Incorporation: 2002
Franchising Since: 2010


Address:
12, CIDCO TOWN Center ,
Behind Indian Airlines Office,
Jalna Road, Aurangabad.(Maharashtra)

Country: INDIA


Description: Harshansanjay’s® salons are specialized and distinctive retailers of hair care and personal grooming services. The salons offer consistent, high quality, affordable, limited hair care services and a limited selection of products designated by Harshansanjay’s to men, women and children in a distinctive retail environment.


Franchise Offer: The franchise described in this disclosure document is a license to develop and operate a single Harshansanjay’s® Salon offering a required line of hair care services and products from a designated location, customarily in a shopping center, identified by trademarks licensed by the franchisor and using distinctive trade dress and business methods prescribed by Harshansanjay’s.
Development agreement – offered to qualified individuals, where the franchisee commits to open a minimum number of Harshansanjay’s® salons in a specified area within a given period of time.


Financial Assistance: Neither Harshansanjay’s, its agents, nor its affiliates offer financing arrangements for the purchase of the Harshansanjay’s® Salon.


Training and Assistance: Harshansanjay’s provides training to the franchisee, stylists and management staff of the Harshansanjay’s Salon. Franchisee Orientation and Training is currently held in Aurangabad and Nashik (Maharashtra) INDIA, where new franchisees are scheduled to attend after their Franchise Agreement is accepted by Harshansanjay’s. There is 20 Days of classroom training included in the orientation. The franchisee, management staff and stylists must attend and complete all Harshansanjay’s Academy for Hair training requirements. This includes 5 Days of classroom training at the nearest available training facility. There is no fee to train the franchisee or first 4 Stylists (including three initial management staff). The LEADS for Management Staff training modules are compulsory for both franchisee and management staff, and include 10 days of classroom training. Every new stylist will entertain a additional fee of 10,000/- per trainee.


Area Required : 500 Sq Ft to 1400 Sq Ft
Territory:
The franchisee will receive a protected area consisting of a circular area defined by a radius of 3 Kilo Meters from the primary customer entrance of the Salon.


Term of Agreement and Renewal: The term of the Franchise Agreement is 5 years from date of opening of the Salon, and provides for consecutive additional renewal terms of 10 years each.


Obligations and Restrictions: The franchisee must devote their best efforts to the management and operation of the Harshansanjay’s® business, but are not required to personally manage the Salon.


Total Number of Units: 4
Financial Statements:
The average annualized total sales in 2008-2009 for a HNS’s is growing more that 150% growth.


Investment Tables:
Initial Investment:

Expenditures AREA 500-700 AREA 700-1400
Initial Franchise Fee Rs 1,50,000 Rs 1,50,000
Designing Fee Rs 15,000 Rs 25,000

Ongoing Fees:


Name of Fee Amount
Continuing Franchise Fee 10 % of your Gross Sales
Sales or other taxes due on Continuing Franchise Fee As imposed by state or local government
Continuing Advertising Contribution 5% of your Gross Sales
Software License and Support Fee Rs 10,000/-

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