Does Zara franchise in the UK? Learn all you need to get started on your way to owning your own Zara franchise in this guide to Zara franchise opportunities.
Fashion is an influential tool people use to define themselves. Trends change fast, and consumers are ready and willing to revamp their wardrobes regularly with the release of new collections.
The UK’s fashion industry reported combined revenue of £43bn in 2019, a number that healthily grows each year. For this reason, a clothing franchise business may be the new profitable venture you’re searching for.
At the top of the list of international fashion companies is Zara, a leading brand in retail clothing. If you’re looking to appeal to a younger, primarily female audience, you should explore Zara franchise opportunities.
Do you have what it takes to run a franchise?
If the opportunity to franchise Zara or another clothing company appeals to you, you should consider whether you have what it takes to run a great franchise.
Franchisors do provide training, but several skills will serve you well as a franchisee, including:
- People skills
- Motivation driven by achievements
- The ability to keep track of the numbers
- An affinity for hard work
- The ability to accept criticism and advice
- Being comfortable with structure.
Many people want to own a franchise because they want to be their own boss. This is nice, but you shouldn’t ignore advice or recommendations from your franchisor. They are the experts, and they know what works and what doesn’t.
If you are uncomfortable with structure, franchising may not be for you. Franchises can be successful because they have business plans that are proven to work. If you deviate from that plan, you run the risk of failure.
If you’re willing to stick to what works and build on that success, you will likely be a successful franchisee.
As far as retail clothing is concerned, Zara is a leading brand in the UK. Zara’s parent company, Inditex, makes 840 million garments a year and sells them in over 6,500 retail locations in 88 countries. Business is booming, as Inditex has opened more than 500 stores a year — more than one store a day.
In Europe, there are 4,400 locations, with almost 2,000 stores in Spain alone. Zara has been a profitable brand from the start, so here’s what you need to know about the company and its franchising process.
Zara’s company objective
Zara puts its customers at the heart of its business model. From design to distribution and sale of their products, Zara takes customer interests into account during the entire process.
Zara stores are typically found in high-traffic commercial areas. You’ll find the outlets in landmark buildings and on busy shopping streets. And nine out of 10 of Zara’s employees work in the stores. Zara’s upper management tends to have a good amount of in-store experience.
The history of Zara
In 1975, Rosalia Meta and Amancio Ortega opened the first Zara store in Corunna, Galicia, Spain. The store sold quality, high-fashion clothing for affordable prices. The business model took off, and Ortega began opening stores around the country.
In the 1980s, the clothing line began to expand to other locations. A store opened in Portugal in 1987, and the first Zara in America followed in 1989. Then came France in 1990, Mexico in 1992, and Belgium, Sweden and Greece in 1993.
By 2011, you could find Zara stores in Singapore, Japan, Malaysia, Russia, China, Morocco, Estonia, South Korea and several other locations.
Zara was ranked 30th on a list of best global brands by Interbrand in 2015. Zara began managing up to 30 clothing collections a year by 2017. Now, the brand is worth nearly £15bn.
You can find men’s, women’s, and kids’ clothing at Zara. Also, you’ll find cosmetics, fashion accessories, bags, and shoes. One unique aspect of Zara’s business is their control of the company from the design, to manufacturing and distribution, down to the supply chain.
The price of Zara clothing varies, but tops can range from £20 to £50, while jackets and dresses can be priced anywhere from £80 to £60 or more.
There are also Zara Home and Zara Home Kids stores that offer furniture and textiles.
Owning a Zara clothing franchise
Before considering a franchise, you should get your priorities in order. This is the case no matter where you’re looking to start your new business venture.
You need to consider how lucrative a franchise will be. You must ensure you have the right amount of cash-flow. And on top of that, you should have some business knowledge to help guide you when making decisions.
So, to become a franchisee of Zara, you should do some research first regarding how much it costs. You’ll want to familiarise yourself with the cost of opening a store.
How much does a Zara franchise cost?
While fees vary by country, the average franchise fee is around £25,000. It doesn’t stop there, however. You’ll also have to note the following fees:
- Equipment, furniture and fixtures: £40,000
- Royalty fee: 5 to 10 per cent
- Advertising fee: 3 per cent of the total revenue
That’s a total initial investment of at least £65,000.
Once you’ve paid these fees, however, you’ll have access to corporate services. These services include human resources, training and logistics, and are at no extra cost to you. Franchisees can also return up to 10 per cent of stock bought — this is unprecedented and unique to Zara.
Keep in mind that these are only the start-up expenses. You must have enough cash-flow to support the day-to-day functions of your business as well.
How do you apply for a franchise?
First, make an appointment with a finance specialist or other franchisees. Getting to know these people will give you invaluable insight into understanding start-ups, knowledge about working with the organisation, and what to expect.
You should also speak with an accountant and a qualified attorney before investing in any business.
Find the contact information for the franchise team and state your interest. You will be able to discuss the franchise opportunity and your eligibility with them. This is also the time to ask any additional questions about the business.
The Zara franchise recruitment team will look into your career background, skills and qualifications. They’ll also be interested in your plans for the business and your ability to fund the venture.
If after speaking to a Zara franchisor, you decide Zara isn’t for you, there are other clothing, accessory and fashion franchises you can open in the UK. Many British labels offer opportunities for franchisees, but foreign companies are also looking to build partnerships with ambitious entrepreneurs.
The following franchises offer start-up benefits that include help with locations and planning.
With over 60 years of experience in fashion, River Island is a popular high street brand in the UK. The company is known for providing affordable, high-quality fashion straight from the runway.
If you’re looking to party, you’ve likely searched for going-out clothes at River Island. It’s a popular store for men and women and offers a range of accessories to complement the latest trends.
Recently, River Island started selling clothes for kids, as well. The brand provides stylish options for children of fashion-conscious parents, and also carries products like homeware, including furniture, accessories, fragrance and more.
If you’re looking for a well-established brand that has trust amongst consumers, River Island could be an excellent franchise opportunity.
Calzedonia sells tights, leggings, socks, swimwear, and beachwear. The brand’s line caters to men, women and children alike. Entrepreneur Sandro Veronesi founded the company in 1986 in Verona, Italy.
In addition to the success it has gained from its retail stores, Calzedonia’s business also has an e-commerce element. The brand’s values centre around finding the most eco-sustainable way of running the business.
Suit the City
Suit the City is a made-to-measure suit tailoring service with both male and female lines of products.
Clients meet with consultant tailors for measurements and style advice, and typically receive their bespoke suit within six to eight weeks. The franchise also offers a subscription-based service, where clients can pay £100 a month towards their collection.
The Suit the City franchise is suitable for experienced business leaders who are ambitious and customer-service oriented. As a franchisee, you won’t be sitting there measuring and sewing - you’ll be running a team of consultant tailors and driving forward the success of your business.
Take advantage of the Zara franchise opportunities
Zara continues to gain popularity in the UK, which makes it one of the best organisations from which to purchase a franchise.
Do your research into Zara franchise opportunities, then reach out to the company to begin the process. And if Zara isn’t right for you, consider other options.
Check out our advice on running a franchise to ensure you set off on the right foot with your new business.