Description of Rattan Furniture Manufacturing Franchise AiKO
Franchise enterprise for the production of wicker furniture from ecorattan.
Main customers: 80% - restaurants (summer verandas), hotels, saunas, swimming pools; 20% - retail chains and shops (furniture for cottages).
The main selling points for our furniture are:
- unique thread with no analogs: predictable high quality production (unlike Chinese)
- large selection of unique in design pieces of furniture
- exclusive furniture models for our largest customers.
- AiKO is a leading company in the market of wicker furniture in CIS.
- Exclusive colors, patterns and textures of rattan thread made in Russia.
- No analogs in balancing price and quality all over the world
- Free niche, a promising market
- Extra charge is more than 100%.
- 8 years of experience in ecorattan furniture production
- High average check
- Unique service in the market and extra income for reweaving old furniture
- A real business with fixed assets.
- The business is not seasonal: in autumn and winter we receive and produce corporate orders to be delivered in spring to customers, from spring to autumn produce for retail chains and individual orders.
- Low dollar dependence because all metal and polymers are from Russia.
AiKO company offers to start an ecorattan wicker furniture manufacturing factory.
We will share our valuable experience of being a leader in launching production and selling with you .Therefore, the best restaurants and hotels in your region will become your customers.
Initial investments in production including lump-sum payment are $132,550.
In approx. 9 months you will start to receive planned turnover.
Planned turnover is $44,180 per month.
Cost price (materials: rattan thread, metal, braces and other) - approx. 26% of turnover.
Payroll fund( without taxes) is approx. 31.68% of turnover.
EBITDA is approx. 39,76%
Profitability is approx. 22,5%.
No royalty payments
Get a detailed business plan
Initial investments: from $132,550
Payback period: from 18 months
Turnover per month: $44,180
Lump-sum payment: $51,250.
You will receive:
- Plan for launching production
- Work schedule
- Weaving technology:
- Training for the director and technical director (in Volzhsky) - two weeks.
- Training for up to 10 weavers (our specialists arrive at your factory). Training period is two months
- Sales training
- Drawings on 30 top models
- Sales regulations
- Marketing materials - catalogs
- Recruiting and selection of a sales manager
- Exclusive specified territory - optional.
- The right to use brand AiKO
- Placement on the website.
Other current expenses: $70,700.
Equipment and materials purchase includes:
- Pneumatic guns
- Braces for aluminum and metal
- Rattan - 5 types of 400 kg each
- Suction cups and gaskets for windows
- Special fabrics
- Equipment for a metalworking workshop (approx. cost - $31,800)
- Equipment for powder coating - about $7,070
- Equipment for a weaving workshop(compressors, pipes) - about $3,540
- Equipment for a sewing workshop - about $2,650
- Management accounting software based on 1-C, adapted - $3,540
- Materials - different plastic stubs
- Materials - polyester fabrics with density 390 g/m2.
Recommended to have $17,700 on your account before reaching a break-even point.
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Requirements for buying the franchise
- Love to work
- Successful experience in business development.
- Production: premises from 1000 m²
- Dealer: a trading room inside a furniture salon or a store from 100 m². The minimum purchase over $31,800. Pronounced seasonality is from April to August.