Own a Zepto Franchise: Cost, Documents, Process, and More

Zepto: Brief Background

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Zepto was founded by Stanford dropouts Aadit Palicha and Kaivalya Vohra in 2021. It has rapidly transformed the Indian e-commerce market and is headquartered in Bengaluru, India. 

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Zepto operates over 100 dark stores across major Indian cities and offers 10-minute delivery service through its AI-powered platform. 

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Within a few years of its inception, the company has acquired a valuation of over $5 billion from investors due to its innovative business model and rapid growth.

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Zepto is a fantastic option for aspiring franchise owners looking for a rapidly growing and lucrative business model. 

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The e-commerce platform offers flexible business models to choose from and also provides operational assistance. 

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Zepto Dark Store Franchise Model

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Let’s discuss the types of franchise models Zepto has to offer for aspiring entrepreneurs. The company offers two franchise models to choose from: 

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Company Owned & Franchise Managed (COFM)

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Under this model, the company takes care of the dark store and the infrastructure, while the franchise owner runs the daily operations. 

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The franchise owners have a reduced financial burden compared to the other model, as there are no obligations regarding the warehouse and infrastructure management.

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On the other hand, franchise owners have full control over staff, customer relationships, and operational management.

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Franchise Owned & Franchise Operated (FOFO)

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The FOFO model allows franchise owners to own and operate their businesses. The franchise owner handles all the operational and managerial costs, including inventory and facility maintenance. 

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To run a FOFO franchise business, you require a larger business cost compared to the COFM model. This model is ideal for those who prefer business and operational ownership. 

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Furthermore, Zepto will assist the franchisee with marketing support and business development. 

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Zepto Franchise Cost in India

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Cost Breakdown

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To become a Zepto franchise owner, you must sign a franchise agreement. The duration of the deal is typically five years. 

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The expense mentioned above is the cost you need to bear for the five-year agreement. This cost can vary depending on location, store size, franchise model, and operation scale. 

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1. Franchise Fee: This is the fee you pay to gain access to the Zepto network and the right to use the brand name. The fee is nonrefundable and applies to the five-year agreement. 

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2. Real Estate Investment: To run a Zepto dark store, you will be required to rent or purchase a suitable property in a high-density residential area. 

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3. Operational Cost: The operational cost covers staff salaries, utilities, delivery fleet maintenance, packaging costs, and waste management. 

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4. Equipment Cost: The equipment cost covers the expense required for interior modifications, technology, POS systems, racking and storage cost, etc.

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5. Inventory Expense: The inventory expense is required to stock grocery items, fresh produce, household items, and packaged foods. It also includes weekly replenishment and seasonal adjustments.

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6. Additional Costs: Expenses incurred for staff training, management training, and onboarding fall under the additional cost category. 

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ROI & Profit Margin for Zepto Franchise Owner

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Here’s a breakdown of potential ROI and profitability if you choose to become a Zepto franchise owner. 

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• Gross Margin: 18-22% of the revenue
• Monthly Revenue: ₹60 lakh to ₹90 lakh
• Royalty Fees: 5-7% of monthly gross sales
• EBITDA Margin: 8-12% of royalties 
• Net Profit: ₹4 lakh to ₹8 lakh 

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How to Apply for a Zepto Franchise?

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We will take you through a step-by-step process for applying to become a Zepto franchisee. 

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Step 1

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Visit Zepto’s official website to get an idea of the kind of products and services the brand offers. After learning about the services, contact the Zepto team to ask about the process. 

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Step 2

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Make sure you thoroughly understand the application process. You can either contact their franchise team or fill in this Google form to start the process.

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Beware of fraudulent websites and agents who pretend to be Zepto representatives. Only trust and accept communications from merchantsupport@zeptonow.com.

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Step 3

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The franchise team will review your application and contact you in case you’re shortlisted. 

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Step 4

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The franchise team will also review the store location and conduct a thorough inspection of the area to establish its dark store.

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Step 5

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Once your application is accepted, you will be required to submit relevant documents. You will also be required to sign the franchise agreement and pay the franchise fee. 

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Step 6

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Zepto will assist with training, onboarding, and franchise management after completing all the formalities.

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Documents Required for Zepto Franchise Application

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Here’s a complete list of documents required to be submitted while applying for a Zepto franchise store:

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1. GST number
2. PAN Card
3. Aadhar Card
4. Proof of address of the store
5. Business Registration Certificate
6. Shop License

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Benefits of Becoming a Zepto Franchisee

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You must be wondering, why should I choose to own a Zepto franchise? Let us tell you why!

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• Brand Reputation: Zepto is a well-established brand. As a Zepto franchisee, you don’t need to worry about advertising your store. The brand name is enough to get you a huge customer base. 

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• Marketing Support: When you partner with Zepto, you don’t need to worry about marketing your store. The company takes care of all the marketing and campaigning.

• Safe Business Opportunity: Within just four years, Zepto has become one of the leading e-commerce companies in India. The demand for 10-minute delivery service has increased dramatically; hence, becoming a Zepto dark store owner is a fail-proof opportunity.

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FAQs

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1. Who is eligible for a Zepto franchise?

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Anyone aged 21 years and above can become a Zepto franchise owner. Moreover, you should also have a stable financial income. 

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2. How much does a Zepto franchise cost?

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The cost of a Zepto franchise varies based on location, with an initial investment typically ranging between ₹30 lakh and 60 lakh.

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3. Does Zepto give franchises?

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Yes, Zepto offers franchise opportunities to qualified individuals, providing a profitable business model in the rapidly growing quick-commerce sector.

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