Khadim’s Franchise Cost in India: Eligibility, Margins, Profit

Khadim’s, founded in Kolkata in 1981, is a leading Indian footwear retailer with a national presence. It operates over 800 stores, including around 589 through franchise partners and 207 company-owned outlets. Known for affordable, fashionable footwear across categories, Khadim’s targets a mass-market audience across urban, semi-urban, and rural India.

Khadim’s

📏 Space & Format Requirements

Khadim’s offers two store formats:

  • Exclusive Brand Outlet (EBO): Requires 500–1,000 sq ft retail space plus 500–700 sq ft warehouse, with minimum frontage (~14 ft), typically suited for high-street or mall locations.
  • Brand Outlet (BO): Compact format of 250–400 sq ft retail plus 250–400 sq ft storage, ideal for smaller markets, with frontage of ~12 ft and daily market potential of ~5,000 sales.

💰 Initial Investment Estimate

Total investment typically ranges between ₹20 lakh and ₹35 lakh, depending on format and location:

Expense Head Estimate (₹ Lakhs)
Franchise/security deposit ₹2 Lakhs
Interior & store setup ₹5–10 Lakhs
Initial inventory stock ₹10–20 Lakhs
Licenses, miscellaneous ₹1.5 Lakhs
Working capital (initial buffer) ₹3–5 Lakhs
Total (approx.) ₹20–35 Lakhs
  • Franchise/security deposit: ₹2 L (refundable)
  • Interior fit-out: ₹5–10 L including fixtures, racks, lighting, branding and systems
  • Initial stock: ₹10–20 L based on floor area and expected mix
  • Licenses & miscellany: trade license, GST, municipal permits approx ₹0.1–0.2 L included in setup
  • Working capital reserves: ₹3–5 L to manage early operations and inventory replenishment

Some sources note the investment requirement can go up to ₹30 L or slightly higher depending on location and store size.

🎯 Eligibility & Application

To qualify:

  • Investor aged 21+ with basic legal documentation (PAN, Aadhaar, GST, shop agreement).
  • Adequate financial capability to support both capex and working capital.
  • Retail space backing (owned or on rental/revenue-share basis) in a shopping or high-footfall area.
  • While prior retail experience is beneficial, it is not mandatory; business-minded applicants are preferred.
  • Khadim’s provides interior design, billing software, and training support.

Contact can be made via the official website or toll-free helpline to submit franchise enquiry forms.

📈 Profitability & Expected Returns

  • Profit Margins: Average net margin on sales ranges from 28% to 32%, varying by mix and volume. Other sources mention margins between 20% to 30% based on cost control and pricing.
  • Revenues: A store with ₹5 lakh daily footfall potential yields strong monthly turnover. With mature sales, monthly revenue of ₹5–15 lakh is achievable depending on catchment.
  • Break-even Timeline: Many franchisees recoup investment within 12 to 18 months, and some sources even point to a one-year turnover for ROI.

✅ Advantages & Risks

✅ Benefits:

  • Association with a trusted national brand
  • Moderate investment threshold for small-to-mid-sized investors
  • Operational support: storefront setup, training, billing systems, and supply chain access
  • Diverse product portfolio appealing across ages and price points

⚠️ Challenges:

  • Business is location-sensitive—high footfall and visibility impact success significantly
  • Competition from other established retailers like Bata, Liberty, Relaxo
  • Effective inventory and staff management critical to maintain margins
  • Franchise model can constrain flexibility—store design and operations must follow brand standards

Final Verdict

A Khadim’s franchise presents a balanced opportunity for first-time entrepreneurs and retail operators wanting to enter the footwear segment with moderate investment and a trusted brand. With an initial outlay of around ₹20–35 lakh, strong margins (~30%), and support ecosystem in place, many franchisees can reach break-even within 1–1.5 years.

However, success depends heavily on securing a prime location, effective inventory planning, cost control, and service delivery. Given the reliable brand and moderate risk profile, Khadim’s remains a viable franchise path for those serious about footwear retail in India.

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