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Factory Outlet Franchise Opportunity – Full Investment Details

In today’s competitive retail landscape, customers are constantly looking for branded products at affordable rates. That’s where The Factory Outlet steps in. With a value-driven model that offers fashion and lifestyle products at discounted prices, the The Factory Outlet franchise has emerged as a profitable retail opportunity for entrepreneurs across India.

If you’ve been searching for a retail franchise that combines brand power with high margins and recurring footfall, this complete guide to the Factory Outlet franchise will tell you everything you need to know. From investment details and ROI to operational requirements and FAQs, let’s break it all down.

Franchise Brand Details

Franchise Brand Name: The Factory Outlet India
Founded Year: Jan 1, 1999
Industry: Retail Store
Company Contact Email: factoryoutletrk@gmail.com
Phone Number: (+91) 9043610922

What is the The Factory Outlet Franchise?

The The Factory Outlet franchise is a retail model that focuses on selling branded apparel, footwear, accessories, and lifestyle goods at factory-direct prices. It operates as a multi-brand store that stocks overstock, export surplus, discontinued lines, and brand inventory clearances.

These stores appeal to price-sensitive customers who still want access to well-known fashion brands. The business thrives on volume, margin, and high foot traffic in busy areas, especially Tier 2 and Tier 3 cities.

Why Choose a The Factory Outlet Franchise?

Here’s why the The Factory Outlet franchise is becoming a go-to option for aspiring retailers:

  • Low Product Costs: Stock acquired directly from manufacturers or brand surplus.
  • High Customer Demand: Affordable branded fashion is always in demand.
  • Low Setup Cost: Compared to high-end showrooms, factory outlets are cost-effective.
  • Faster ROI: High-volume sales ensure quicker return on investment.
  • Multi-Brand Offering: Flexibility to stock a wide range of fast-moving fashion products.

The Factory Outlet Franchise Investment Details

Setting up a The Factory Outlet franchise doesn’t require massive capital. Here’s the typical investment breakdown:

Expense ItemEstimated Cost (INR)
Franchise Fee₹50,000 – ₹1,50,000
Store Setup & Interiors₹5,00,000 – ₹7,00,000
Initial Inventory₹5,00,000 – ₹10,00,000
Branding & Signage₹50,000 – ₹1,00,000
POS, Billing & CCTV₹50,000 – ₹75,000
Working Capital (3 Months)₹1,00,000 – ₹2,00,000
Total Investment₹15,00,000 – ₹20,00,000

The investment varies based on store size (minimum 600 sq. ft.) and location.

Factory Outlet Franchise Profit Margin & Revenue Potential

The Factory Outlet franchise partners can expect a gross margin of 30% to 45% depending on product category. With good location, average monthly revenue can range between ₹7 Lakhs to ₹20 Lakhs.

Monthly Earnings Snapshot:

  • Average Monthly Sales: ₹10,00,000
  • Gross Margin: 40% = ₹4,00,000
  • Operating Expenses: ₹2,00,000
  • Net Profit: ₹2,00,000/month approx.

Franchise owners typically break even within 12 to 18 months.

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Ideal Location & Store Requirements

A successful The Factory Outlet franchise needs:

  • High-footfall market (near bus stands, markets, malls)
  • Ground floor, street-facing location
  • Minimum area: 600 to 1,000 sq. ft.
  • Power backup, CCTV, basic interiors

Also Read this: Chanakya Franchise is worth Investment? How to start, ROI

Training & Support

Factory Outlet provides complete onboarding support, including:

  • Staff training (billing, customer handling, stock management)
  • Store design, layout & interior guidance
  • Inventory sourcing & seasonal restocking
  • Promotions, advertising creatives & social media support

You also get access to:

  • A centralized inventory system
  • Regional managers & support executives
  • Seasonal discount plans & bulk buying access

Growth Potential in India

The Indian apparel and lifestyle market is expected to reach $250+ billion by 2026. The rise of Tier 2 & 3 cities, combined with demand for affordable branded products, creates a perfect ecosystem for The Factory Outlet franchise growth.

With increasing price-consciousness among millennials and Gen Z, factory outlet stores are becoming a retail favorite.

Final Thoughts

The The Factory Outlet franchise is a fantastic low-risk, high-reward business model for aspiring entrepreneurs in India. With manageable startup investment, recurring demand, and high earning potential, it offers an excellent way to tap into the booming retail market.

If you’re ready to build your own retail success story, now is the time to invest in a The Factory Outlet franchise.

Frequently Asked Questions (FAQs) – The Factory Outlet Franchise

What is the The Factory Outlet franchise?

It is a retail franchise that sells branded fashion and lifestyle products at discounted prices through multi-brand outlets.

How much does it cost to open a The Factory Outlet franchise?

The total investment ranges between ₹15 Lakhs and ₹20 Lakhs, depending on location and store size.

What kind of profit can I expect?

Typical gross margins range from 30% to 45%. Net monthly profits can reach ₹1.5 to ₹2 Lakhs with consistent sales.

What is the ideal store size of factory outlet franchise?

Minimum 600 sq. ft. is recommended. Larger stores have better revenue potential.

What support will I receive as a franchisee?

Store setup guidance, inventory supply, marketing assistance, sales training, and regular support.

How can I apply for a Factory Outlet franchise?

Contact the brand’s franchise team via their official website or email, and they will guide you through the application process.

Is factory outlet franchise this model suitable for Tier 2 & 3 cities?

Absolutely. Demand for affordable branded products is highest in non-metro regions.

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