Nike is a sportswear and footwear manufacturing and design company which is popularly associated with the swoosh logo. Its products are widely consumed by athletes around the world and the general population. They tend to incorporate branding from famous athletes. Nike has also franchises its business opportunities internationally so that there are people who manage their business using Nike brand internationally. If you are thinking of opening Nike franchise business in India, then it is necessary to understand the Nike Franchise Cost in India required in franchising as well as the cost that would be incurred while operating the franchise.

Initial Investment:

First cost of opening up a Nike franchise may differ along the city, size of the store among others. First of all, it is necessary to know that Nike franchise’s initial investment can reach from 50,000 USD to 200,000 USD on average. Nike Franchise Cost in India will consist of costs including store construction or renovation, inventory for the initial period, equipment and signages among other start up costs.

Franchise Fee:

This is usually in form of royalty fee which Nike uses to grant right to use the company brand name. To open a Nike store in India a franchise fee of INR 5lakhs to INR 20 lakhs has to be paid. This fee is not refundable and is usually paid at the time the franchises’ agreement is being signed.

Working Capital:

In addtion to the one time setup cost and franchise fee, one should ensure that he/she has adequate working capital to be used in day to day operations like rent, wages, power, advertisement and restocking of stocks. The working capital requirement can in turn fluctuate but it is expected that it will be between 10 lakhs to 30 lakhs depending on the size and location of the store.

Royalty Fees:

For example, apart from franchise fee, Nike has the right to charge royalty fee that is a percentage of the sales made by the store every month. This fee generally ranges between 2%0 to 8%0 of monthly gross sales.