Initial ChecklistFranchise would be required to provide at least. 800 sq. ft. carpet area in strong retail area on ground floor with frontage of at least 15 ft.

Storage space for stock would be the onus of the franchise and additional expense, if any, for the same would be borne by the franchise.

Ownership status for the showroom would have to be declared beforehand by the Franchise (whether it is rented or owned). The Showroom will be owned/leased by the Franchise for a minimum period of 5 years. If Shop is rented, Orient will reimburseupto 50% of rent for 3 years or company budgeted rental, whichever is lower.

Orient Electric Smart Shop will be personally managed by the Franchise. In absence of his personal presence, Franchise will hire a store manager for the managing the store. Franchise would also provide one dedicated resource in form of helper for upkeep and maintain hygiene factor of the store.

Investment EstimateThe initial set-up investment stands at an estimate of Rs. 20 Lakhs. The breakup is as follows:

Approx. Cost (in Indian Rupees)
Civil Work (False Ceiling, Floor Work, Glass Facade, Electric Fittings, etc.) Rs. 4 - 4.5 Lakh (varies with the store size, layout and variance in standardized rates)
Stationery and Office Equipment (Personal Computer, Licensed Tally Software, Television, Air Conditioner, CCTV, Printer, etc.) Rs. 1.5 Lakh
Display Stock Rs. 4 Lakh (additional One Time Support of 50% off on MRP per SKU)
On Hand Saleable Stock Rs. 8 Lakh
Security Deposit (Refundable, with 7% Rate of Interest p.a.) Rs. 4 Lakh
Total Initial Investment (One-Time) Rs. 20 Lakh

Store interiors, layout and branding is done as per the guidelines laid down by Orient Electric through its appointed designing agency. The cost of interior fixtures and branding will be borne solely by Orient Electric, and therefore will be Orient Electric’s property. The Franchise is expected to maintain the high quality of the interior throughout the operation of the Smart Shop. Any subsequent maintenance cost, handling damages and wear-and-tear, will be borne by Franchise to conform to the quality standard as defined by Orient Electric.

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