Brand Factory, originally part of Future Group and now transitioned under Reliance Retail, is India’s leading off‑price fashion retail chain, offering branded clothing, footwear and accessories at heavy discounts year‑round. The format occupies large-format stores—typically 5,000 to 8,000 sq ft—and stocks over 200 international and Indian labels such as Levi’s, Allen Solly, Nike, Adidas, Raymond and more.
💼 Does Brand Factory Offer Franchises?
While many retail chains offer franchise models, Brand Factory primarily operates company-owned stores under Future Group management. However, some business listings suggest a unit‑franchise model was proposed in the past. Still, the brand itself runs its stores directly, and true franchising opportunities appear limited or discontinued.
Still, for those exploring a hypothetical franchise or investor partnership model, here’s an estimate based on available information.
Estimated Investment Breakdown
1. Franchise Fee
Some sources cite a one‑time franchise fee of ₹3 lakh to ₹4 lakh for a unit franchise (if available at all).
2. Store Space & Rental
- Area needed: 5,000 to 8,000 sq ft in a high‑footfall location such as large shopping districts or malls.
- Monthly rent:
- Tier‑1 cities: ₹5 lakh to ₹10 lakh/month
- Tier‑2/3 cities: ₹2 lakh to ₹5 lakh/month.
3. Setup & Infrastructure
- Interior design, fixtures, signage and retail displays: ₹20 lakh to ₹30 lakh or more depending on the quality of fit-out.
4. Initial Inventory
Heavy inventory investment is needed to stock branded apparel, footwear and accessories:
- Estimated initial stock: ₹20 lakh to ₹30 lakh.
5. Licenses & Compliance
Basic licensing such as trade license, GST registration and local permits typically range ₹60,000 to ₹1.2 lakh in total.
6. Working Capital & Marketing
A working capital buffer of ₹10 lakh to ₹20 lakh is advisable to cover payments, staff and initial promotions. Marketing contributions might be required as part of brand alignment (usually 2‑4% of revenue).
Total Investment Estimate
Summing up the costs:
| Expense Head | Estimate (₹ Lakhs) |
| Franchise Fee | 3 – 4 |
| Infrastructure & Setup | 20 – 30 |
| Initial Inventory | 20 – 30 |
| Working Capital & Marketing | 10 – 20 |
| Total Upfront Investment | ₹55 – ₹84 lakh |
If branding/setup needs are more premium or in top-tier locations, the total may rise to ₹1.5 crore or beyond—comparable to larger formats noted in analyst report.
📈 Revenue Share & Profitability
- Revenue sharing: Franchisee retains 89% to 94% of gross revenue; brand commission is typically 6% to 11%.
- Expected annual turnover for a well-performing outlet could range from ₹3 crore to ₹10 crore, based on location, local demand, and scale.
- Profit margins: Typical net margin after costs estimated between 10–15%, translating to reasonable returns post break-even.
- Break-even timeline: Many outlets could recover initial capital in 1–2 years if well managed and located strategically.
✅ Pros & Cons of Investing in Brand Factory Franchise
Advantages
- Established brand with strong consumer awareness and discount‑focused model.
- Wide product range addressing men, women and kids.
- High footfall potential from bargain‑oriented shoppers.
Challenges & Caveats
- Franchise model unclear or discontinued—most stores are company‑owned under Future/Reliance control.
- High entry cost: Large format, heavy inventory requirements.
- Brand reputation risk: Credibility suffered post-Future Group financial struggles and store closures; Reddit discussions note many Brand Factory outlets are closed or rebranded as Fashion Factory under Reliance, with declining freshness and quality in some locations.
- Operational complexity: Staffing, inventory flow, rent obligations and dependence on location footfall all add pressure.
🧠 Final Take
Although Brand Factory was once India’s largest discount fashion chain, genuine franchise opportunities appear limited or non‑existent today. The brand is transitioning under Reliance Retail, with many outlets closed or rebranded. For aspirants, direct franchising may not be feasible. Still, similar off-price retail ventures or collaboration under other Future/Reliance formats might be more practical.
For a hypothetical franchise, the investment needed would likely be in the ₹55 lakh to ₹1 crore range for a 5,000–8,000 sq ft outlet—with a revenue-sharing model offering 89–94% commission to the operator, aiming for break-even in around 12–24 months.
