Frequently Asked Questions

• Who can become a Franchisee? I do not know anything about Mattress business.
  Anyone who has an inclination towards business & have the capacity to invest can become a franchisee of Bafte The Sleep Store. Full training will be provided on the business and selling skills. A burning Desire to own an international Brand, work with the brand & principals and grow the business is the primary criteria for selection.
• What is the initial investment is required?
  Your initial investment required is in a showroom of minimum 600 sq ft upto a maximum of 1600 sq ft floor area, with vitrified tile flooring, false ceiling, 20 to 30 feet glass frontage in a busy shopping district or on high traffic arterial road with good visibility. It is ideal to have the showroom air conditioned to keep dust away. Since the cost of showroom is depended on the city, area/location, current market rate per square feet etc. this will have to be assessed by the franchisee. The one time non refundable Franchisee fee to be paid is Rs. 1 lakh. Depending on the volume of business expected a Refundable Deposit of 1 lakh or more will be required. However this deposit can be waived if the franchisee opts for advance payment for all their purchases. Value of initial stock will be in the region of 1 to 2 lakhs depending on the size of the showroom. All in all, a franchisee showroom can be opened with an investment as little as Rs. 5 Lakhs (excluding the cost of showroom)
• Is this a good business to enter into?
  Bafte The Sleep Store as grown from a single outlet into an international chain of stores within 5 years. The first showroom had a break even period of just one year and grew the business year on year by more than 40% for the first three years. This business requires minimum employees (1, 2 or 3 per showroom), and involves high margin and therefore low volume of customers to handle. You will be working with an international product category leader and an international store brand which is bringing in revolutionary concepts in its field of business.
• What are the growth prospects?
  India has over a billion population with a very affluent middle and upper middle class population of over 300 Million (More than USA's total population) and every one of the need a mattress to sleep on. India's organized mattress business is less than 20% of its potential, the other 80% being in the hands of regional and local unorganized sector who hand make cotton and other mattresses. The organized sector is growing at a very high speed and is mainly driven by very few Indian brands such as Kurlon, Sleepwell, SpringKoil, Sunidra, Rubco etc. A good quality international brand like Spring Air, with aggressive growth plan, aiming to become the number one brand in India in line with their global positioning is sure to further drive the growth of the organized sector. With India opening up more to international products and brands, with large number of Indian expatriate population, with Indian's international exposure via foreign travel, TV channels and internet, Spring Air Mattresses, one of world's leading brand, which has entered India since 2009 is spearheading the growth of Mattress Business in the organized sector, not only taking share from unorganized sector, but also from leading Indian brands within the organized sector. Bafte The Sleep store offers this key growth driver within their store and will be offering quality category leaders among the Indian brands in due course.
• What turnover and margin/ROI can we expect?
  Turn over depends on the city, store location, involvement of the franchisee etc. The profit mark up to be enjoyed is as high as 35% (inclusive of growth bonus, prompt payment discounts etc). The Return on Investment is much higher than any bank deposit.
• Will the company do marketing activity?
  The Principal product brand owners will be carrying out periodic sales and marketing activity at national level and regional level for the product brand. Apart from this the franchiser will be carrying out their own regional marketing activity from time to time for the store brand.
• What about display items and Signage
  All showroom display items will be provided to the franchisee at 50% of MRP. These products can be sold every six months at reduced prices and fresh products ordered to keep the display items always fresh in the showroom. The Main signage of the showroom for the first time will be provided at company's expense.
• What are the payment terms?
  At the beginning all payments are to be made upfront. (for display item, minimum stock level). Since almost all sales of the franchisee to their customers will be on cash basis, regular orders are dispatched on a 7 day payment terms which will allow the cash discount. The total order thus placed will have to be within 130% of the deposit amount. Any payment made after 7 days but within 21 days will deprive the franchisee of the cash discount. Payment delayed over 21 days will seriously affect the franchisee agreement.
• Can we sell other products in the franchisee stores? No other product will be allowed within the franchisee showroom other than the one authorized by the franchiser. However, we will look at each request on a case by case basis to consider or reject. The franchiser's decision will be final.
• Are there any targets to achieve?
  All targets will be mutually agreed and will be in direct proportion to the contribution the company is making. In most cases, we do not assign any target for the first 3 months of operation. Targets will be set and agreed every six months to one year.
• What is the exit policy?
  A franchisee is required to abide by the agreement they will be entering into. If the franchisee or the franchisor wants to terminate the agreement, a notice period of 6 months should be given by either party.
• Can a person open more than one franchisee stores?
  Anyone can open any number of showroom within their assigned territory, provided it justifies the requirement or in other territory where a franchisee do not exist.
• Do I Need to keep a large stock? Do I need a warehouse? Since all deliveries are made within 4 to 14 days from order, A franchisee is not expected to hold a large stock and hence a warehouse per se is not required. However, if a franchisee feels the requirement of holding stock for immediate deliveries in their showroom or in a warehouse they are free to do so.
• What about Delivery expenses?
  All deliveries from factory/regional warehouses direct to the showroom or franchisee's warehouse are done at the company's cost. Delivery charges from there to the customer premises are either paid by the customer or the franchisee.
• What about product warranty?
  All our mattresses come with 5 to 10 year warranty.
• What other support can a franchisee expect?
  The company will support all exclusive franchisee showroom with a rental contribution ranging between 20% to 40% of the rent with an upper cap of 40,000 Rs in the form of credit note against purchases. However, this will be linked to a purchase target in proportion to the rental support. The company will also provide training for the franchiser and their sales staff from time to time. An initial cost of leaflet distribution or a hoarding expense will be shared by the company.
• How do I apply for/ become a Franchisee?
  You are required to send an email to the company detailing your profile, level of investment you are willing to make,city/ town name, location address of the showroom you have identified, details of the floor space, frontage, visibility etc. of the showroom, and the company will get back to you within 2 weeks. Your email should be sent to, "info@transindia.in". For further details one can call +91 98402 44034 or +91 99622 35101.