The market for goods for children's creativity is gradually increasing. A special place here is occupied by the Orange Elephant franchise. This network is one of the largest in Russia. The company specializes in products intended only for children. For start-ups, a franchise is considered one of the best options for a successful business.
A bit of history
The Orange Elephant chain of stores appeared in Russia in 2007. Over the entire existence, approximately 400 studios have been opened throughout the country. The Orange Elephant franchise is popular not only in Russia, but also in the USA and the CIS countries.
The company is able to attract consumers with its unique and vibrant design, a peculiar interior of retail outlets and a creative atmosphere. It is worth noting that the Orange Elephant chain of stores has occupied an unusual segment of the market. Her products are intended for children's creativity.
The main factories manufacturing the Orange Elephant franchise are located in China. Raw materials needed for production meet all standards and requirements. The central office of the company is located in Moscow. Here agreements are concluded with partners, new projects and plans for the future are discussed. The head office also controls production volumes.
Franchise Assortment
The Orange Elephant franchise attracts new partners to develop its network. The company can offer franchisees a wide range of products. On the shelves of shops you can see high-quality kits for creativity: decorative frames and finger paints, modeling dough, drawing kits, ball clay, and more. All brand products have the relevant documentation and quality certificates. All sets are well packaged.
The products of this brand are intended for children aged 2-12 years. Many parents have already become regular customers. The main advantage of the goods is a clear and well-written instruction for each set. It will be clear even to a child. This allows you to make the creative process more interesting. Products of the Orange Elephant brand are credible and in high demand.
Franchise Key Benefits
Reviews of the Orange Elephant franchise indicate that this activity has several advantages:
- Outlets "Orange Elephant" not only sell kits for children's creativity, but also conduct classes. The latter type of activity brings up to 40% of revenue per month.
- Franchisees need up to 0.5 million rubles to start a business.
- Investments pay off in a year.
- Royalty are absent.
- At any stage of cooperation, the company helps the franchisee in doing business.
- This niche is actively developing and demand for products is growing.
- Around the world there are about 400 outlets located in Russia, Georgia, Holland, USA, England and Ukraine.
- The products of the Orange Elephant brand are characterized by a high quality indicator and meet all standards. This is confirmed by certificates.
- After signing the contract, the franchisee receives all the necessary material for training: video lessons for conducting classes, master classes, business instructions and so on.
Franchise of children's goods “Orange Elephant” is one of the three best franchises for the sale of children's goods.
How much is
How much does it cost to open an Orange Elephant store? The approximate amount of capital that the franchisee needs to invest is approximately 500 thousand rubles. This cost item includes:
- purchase of the first batch of finished products at low prices from the manufacturer - 300 thousand rubles;
- lump-sum fee for the right to use the TM “Orange Elephant”, for receiving instructions on doing business and developing a business, a brand book with a corporate identity and layouts, methods for conducting classes with children, consulting company specialists throughout the entire period of cooperation with the franchisee - 35 thousand rubles ;
- purchase of commercial equipment, inventory, plasma, furniture - 90 thousand rubles;
- room rental - 60 thousand rubles;
- advertising costs and other expenses - 15 thousand rubles.
This amount is required to open a retail outlet, the area of which is 60 square meters.
If there is no money
The terms of the Orange Elephant franchise may not seem feasible to anyone. If there is not enough money, then you can start with the modular system of the "island". In this case, the area of the commercial premises may be from 4 to 12 square meters. To open a store will require no more than 200 thousand rubles. This amount leads:
- purchase of products and kits for creativity of the Orange Elephant brand - 150 thousand rubles;
- lump-sum payment - 20 thousand rubles;
- rental of premises - 20 thousand rubles;
- promotion costs and other expenses - 10 thousand rubles.
There are no royalties upon the acquisition of such a franchise. This allows you to reduce costs, gradually improve your business and grow.
What conditions
To become a partner of a company, you must:
- have experience in entrepreneurship;
- be an active individual entrepreneur or legal entity;
- have a positive credit history;
- possess the necessary cash.
The cooperation agreement is signed by the franchisee and the company, and then certified by Rospatent. Thus, the document becomes legally binding.
Requirement for premises and staff
The room for the Orange Elephant studio can be opened in the pavilion. If the contract is executed in a modular system, then a room in a shopping and entertainment center is suitable. You can also use a separate building with a total area of at least 4 square meters.
The room must be property or be issued under a lease for a long period. As for the specific requirements in terms of technical equipment, they are not. Furniture and interior items can be ordered from Stanby. She is a partner of Orange Elephant. In this case, the franchisee acquires the necessary equipment on favorable terms.
As for the staff, then for the operation of the outlet will require no more than 4 people. At the same time, employees should be able to find a common language with children of any age. This is especially important for those who will conduct developmental classes.
Where to go
In order to acquire a franchise and get accurate information about the possibilities of cooperation, a potential buyer must visit the official website of the company. In the appropriate section, the visitor can leave a request. After some time, the company manager will answer all questions by e-mail.
Also, the buyer can call the phone number listed on the site in the "Contact Us" section.
Studio store payback
Calculating the payback of the outlet is easy. The cost item includes:
- initial franchisee investments - 500 thousand rubles;
- monthly salary to employees - 80 thousand rubles;
- rent - 60 thousand rubles;
- purchase of products - 60 thousand rubles.
Each month, franchisees will spend up to 200 thousand rubles. In this case, the profit of the outlet on average is from 250 to 290 thousand rubles. This amount consists not only of the sale of finished products, but also from the development of classes with visitors.The project will fully pay off in 6-12 months, subject to an active advertising campaign.
Will the "island" pay off
If the Orange Elephant franchise is open in a modular system, then it can take less time to recoup the project. The amount of the initial capital is not more than 200 thousand rubles. Moreover, the area of the premises is from 10 to 12 square meters. As for the monthly costs, they are:
- remuneration of employees - about 40 thousand rubles;
- purchase of products - 50 thousand rubles;
- room rental - 20 thousand rubles.
The monthly expenses of the outlet are not more than 110 thousand rubles. In such a franchise, income is generated only from sales of creative sets and educational products for young children and schoolchildren. On average, this amount is 140-170 thousand rubles. In this case, the franchisee must remember about advertising. The payback of the Orange Elephant franchise for the modular system is 4-7 months.
In conclusion
The Orange Elephant franchise is a unique opportunity to start a business with minimal investment. According to reviews, this type of activity is new in our country. The niche for the sale of children's developing goods is not fully occupied. Such a business will bring good profit if you act according to a pre-planned scheme.
The company "Orange Elephant" allows you to open your own business with minimal investment. Moreover, the franchise has many advantages. First of all, it is worth highlighting a small lump-sum payment.