What is MR D.I.Y. Franchise Cost in India? Complete Details

MR D.I.Y. (stylised MR.DIY) is a rapidly growing Malaysian home-improvement and variety retailer chain that’s expanding rapidly across Asia and further. If you’re considering the possibility of a leasing or retail franchise collaboration within India as part of the MR D.I.Y. banner, this article walks you through the information that’s public (and what’s not) and the likely costs, realistic expectations for ROI Who should apply, and the best way to take as well as strategies to make your idea feasible and financially viable.

Quick answer at the top: MR D.I.Y. in India is a subsidiary of Dua Lima Retail Private Limited and is currently opening stores, however its public documents emphasize lease/partnership opportunities and stores that are managed by the company instead of a prominently-publicized single-unit franchise with a clearly-described franchise fee. For an accurate franchise/partnership offer you’ll need to contact their India business-development team.

What Mr. D.I.Y. has been doing in India (and the reason why it matters)

MR D.I.Y. is a large-format / big-box retailer that offers thousands of SKUs in the categories of household, hardware electrical, stationery, and much more. In general, the store formats of the brand are vast (the company often provides average footprints for stores of 10,000 square feet space) and they have a presence in India. India presence is managed under the control of Dua Lima Retail Private Limited. MR D.I.Y. is currently establishing locations throughout Indian cities (store-opening pages and store-locator listings confirm the expansion process). This is important because prospective customers should anticipate greater investment requirements for stores and capital commitments than a tiny Micro-franchise, kiosk.

Do you think MR D.I.Y. provide an average Franchise model for India?

Brief: not publicly in the traditional sense of small-franchise.
Mr. D.I.Y.’s India site and corporate descriptions show that the the stores’ operations have been “managed through direct contact and conjunction with major merchants and the mall’s owners” The language suggests company-owned expansion and mall leasing tie-ups as well as strategic partnership with retail, rather than a franchise-for-anyone program with fee-based ticket prices that are affordable. It does not mean MR D.I.Y. isn’t a good choice for local partners. Businesses that are this size may offer territories partnerships leasing, area development, or partnerships. However, you won’t find an official “franchise fee plus royalty plus start-up costs” document on the website. The correct next step is to contact their BD team and request the business-development/partnering pack.

Realistic expectations for investment (why you should be planning to invest in high-capex)

Because MR D.I.Y. is a huge-format variety store and a typical investment profile is different from food kiosks or a small retail franchises.

• Size of the store The global message is based on large average footprints of stores (~10,000 sq.ft. ) but the format of each differs according to market — anticipate some thousand square feet minimum for an independent store in India. Smaller sizes (mall units) can be attainable, but they are huge compared to kiosks with a single category.
• Fit-out & shelving racks to have a big-box outlet, you need to budget for the cost of heavy shelving, racking and lighting. HVAC is also required. back-of-house storage facilities and loading/unloading.
• Cost of inventory: The MR D.I.Y. stocks thousands of SKUs and the initial inventory financing for large outlets will be significant (multi-lakhs to billions of dollars depending on the scale).
• Work capital: staffing, inventory turn and utilities, as well as rent deposits are all recurring and substantial.
• Cost of the project for a custom-built standalone or large mall unit you must prepare conservatively for 10s of lakhs some crores of initial investment (site contingent). Because MR D.I.Y. doesn’t provide a single line franchise cost, don’t base your decision on the word of mouth — ask BD for a customized cost-sheet.

Expected ROI and margin factors

Large general-merchandisers operate on relatively slim per-item margins but depend on very high inventory turns and volume. The most important factors that determine ROI

• Revenue by sq.ft. — the most significant measurement. Hypermarkets with high footfall that have volumetric sales generate higher ROI.
• Turns of inventory faster lower the cost of inventory and increase the efficiency of working capital.
• Costs for staff and rent These fixed costs can either make or break profits in the case of a large-format shop.
• Costs for logistics and suppliers -efficient supply chain assistance from the brand with local warehousing, but the location of distribution and warehouses are crucial.

Due to the capital-intensive nature of the business, payback is commonly calculated over a period of several decades in the case of large format retail (typically three to five years for moderate areas; quicker for high-volume stores). Ask an MR D.I.Y.’s samples of unit economics for similar Indian locations prior to committing. (They may give sales benchmarks as well as payback examples if they provide leasing or area development partnerships.)

Who should think about joining forces together with MR D.I.Y. ?

This opportunity is suitable for you if

• Are able to access substantial funds (tens of thousands to crores) or be able to secure commercial financing.
• Are able to provide or secure large retail spaces (mall anchors or large high-street stores or standalone stores with great accessibility to loading).
• Have previous experience (or as partners) with the retail industry, warehousing and logistics and management of staff.
• Are able to sign long-term leases and will accept longer ramp-up timeframes as the brand’s reputation grows.

If you’re an investor with a limited amount of capital, or looking to purchase a single unit franchise or a single-unit franchise, the D.I.Y.’s standard format may not be suitable — think about smaller retail franchises instead.

The steps you can take to method of approaching MR D.I.Y. (what do you need to convey and how)

1. Create a succinct financial and property pack including photos, precise address and the floor space (sq.ft. ) as well as lease terms, rental, anticipated footfall or pending anchor tenants, as well as your financial capacity.
2. Get in touch with MR D.I.Y. Business development services in India by email ravindermalik@gmail.com or call the contact form or careline available on MR.DIY India’s website. Make sure you request for the “partnering/leasing package” and “area development plan” and request an appraisal of your site.
3. Request a sample unit economics Ask for sales benchmarks, estimated amounts of inventory, and examples of payback for similar Indian locations.
4. Prepare for site inspection and commercial negotiations The brand will review the area of trade accessibility, and the fit within their network. They typically collaborate with mall owners as well as large landlords of retail.
5. Negotiate: support for capex and supply terms, exclusiveness and length of contract Large retailers can provide partial capex support or longer-term supply contracts for solid partners.
6. Legal and commercial diligence • Have your lawyer go over the tenancy agreement lease agreement, franchise/lease agreements, and service level agreements prior to you make deposits.

Final checklist prior to signing sign

• Receive detailed estimates of the cost of capital expenditure, inventory as well as working capital.
• Request a samples of P&L (monthly) to get the same store by contacting MR D.I.Y.
• Confirm the terms of your supply (who will supply the initial inventory time, lead times, the return policies).
• Verify territory/exclusivity and exit/termination clauses.
• Contact any current regional partners or mall owners who have collaborated together with MR D.I.Y.