How to Start a VLCC Franchise

VLCC Group is a leader in the Indian beauty and wellness industry with over five million customers served through 301 locations in 134 cities across 11 different countries. VLCC was started in 1989 by Mrs Vandana Luthra to spark self-transformation, spread happiness and imbibe every individual with wellness for life. In addition to operating a chain of beauty and wellness centres across the world, the company also offers over 169 skincare, haircare, body care, functional foods and fortified foods products under the VLCC Natural Sciences™, SkinMTX™, BelleWave™ and Enavose™ brands. VLCC products are retailed through 72,000 outlets in India. In this article, we look at the process of starting a VLCC Franchise in India.

Health and Wellness Industry in India

The health and wellness industry is one of the fastest-growing industry in India - due to a young and urban population that is more concerned about health and wellness. The health and wellness industry in India is poised to touch Rs 1,00,000 crore (Rs 1 trillion) by 2015, with a compounded annual growth rate of 15-17%, from about Rs 70,000 crore in 2012. Out of the entire health and wellness industry, the wellness market in India is about INR 490 bn and wellness services account for 40% of this market. In wellness services, segments such as slimming products and services, fitness services and equipment and cosmetic treatments are witnessing the highest growth - making VLCC Franchise an attractive opportunity.

Benefits of Becoming a VLCC Franchise

Becoming a VLCC Franchise compared to starting a standalone beauty parlour has various advantages. VLCC is an established leader in the health and wellness industry with over 23 years of experience. Hence, starting a VLCC franchise provides the Entrepreneur with access to a brand that is trusted by millions of customers across the world. In addition, by opening a VLCC Franchise, the Entrepreneurs is also able to tap into that VLCC clientele in the same geography.

VLCC has successfully launched over 150 Slimming, Beauty and Fitness centres in India and across the world. Therefore, the Group has experience setting up and operating successful health and wellness centres. This knowledge and experience are transferred and shared with the Entrepreneur. Further, VLCC also provides assistance with technical issues, help overcome operational and administrative challenges, along with providing guidance for effective sales and marketing. Therefore, Entrepreneurs opting to start a VLCC Franchise can avoid common mistakes and run a professional wellness centre from day one with the help of VLCC.

VLCC Franchise Types

VLCC offers three types of franchise opportunities as under:

VLCC Salon

Area Required 800-1000 Sq. Ft. (Carpet Area)
Franchise Fee INR 6,00,000 – 8,00,000
Equipment INR 5,00,000 – 7,00,000
Interiors & Fixtures INR 14,00,000 – 18,00,000
Miscellaneous Expense INR 25,000 – 50,000
Training Cost INR 25,000 – 50,000
Total Investment INR 26,00,000 – 28,00,000
Royalty Fees Rs.35000/month or 14% on monthly turnover, whichever is higher.

VLCC Slimming Center

Area Required 1100 – 1250 Sq. Ft. (Carpet Area)
Franchise Fee INR 6,00,000 – 8,00,000
Equipment INR 10,00,000 – 11,00,000
Interiors & Fixtures INR 16,00,000 – 18,00,000
Miscellaneous Expense INR 50,000 – 1,00,000
Training Cost INR 50,000 – 1,00,000
Total Investment INR 34,00,000 – 35,00,000
Royalty Fees Rs 35000/month or 14% on monthly turnover, whichever is higher.

VLCC SLIMMING, BEAUTY AND FITNESS CENTER

Area Required 1800-2200 Sq. Ft. (Carpet Area)
Franchise Fee INR 12,00,000 – 16,00,000
Equipment INR 18,00,000 – 20,00,000
Interiors & Fixtures INR 28,00,000 – 34,00,000
Miscellaneous Expense INR 50,000 – 1,00,000
Training Cost INR 50,000 – 1,00,000
Total Investment INR 60,00,000 – 62,00,000
Royalty Fees Rs 60000/month or 14% on monthly turnover, whichever is higher

Process for Starting VLCC Franchise

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Infographic: Process for Starting VLCC Franchise

The process for starting a VLCC franchise is illustrated in the infographic above. Prior to beginning the franchise process, it is recommended that the Franchisee set up a Private Limited Company and enter into Franchise Agreement in the name of a legal entity. Entering into the franchise agreement through a legal entity would ensure that the business is easily transferable and the promoters enjoy limited liability protection.

Once the Franchise is established, the Entrepreneur would have to obtain GST Registration. Mostly GST would be applicable for a VLCC Franchise as it would provide services and also sell cosmetic products.

For more information about starting a VLCC Franchise business in India, talk to an IndiaFilings Business Advisor.