Terranova - Retail Franchising

A brand shining like the sun of its homeland!

“Sparkle!” is our “trademark” and motto: we love to spread creativity, ideas, passion and enthusiasm.
Terranova is a brand for all: our products from menswear, womenswear, kidswear and underwear lines are colorful, ironic, innovative but, most of all, affordable.
For years we have guaranteed one of the best quality-price ratios on the market, without forgetting care for details and a wide range of colors.
We are committed to be among the market leaders in the latest trendy products, denimwear and basic wear.
Terranova, color your life!

Run your own Terranova store

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The brand
Customer experience
The retail franchising format

Brand

PRODUCT SELECTION

Terranova apparel features young, affordable, colorful products, with great attention to detail. Several collections to meet the needs of our customers for any occasion, thus fostering customer loyalty across different targets.

STORE

Terranova is a POP brand, created in 1988 in Romagna, the land of smile and hospitality in Italy! Terranova stores are the mirror of our philosophy as they draw inspiration from the inclusivity models of Romagna Riviera: so, when customers pop into our stores they do not just feel cozy, but members of a larger community. This thanks to our efficient store staff, always full of energy and highly trained to be friendly and kind with customers. The paths inside the store guide customers to discover products, while a great attention to detail in visual merchandising makes each step of the shopping experience easier, including dress choice and fitting in the fitting rooms.

Location: shopping centers, town centers, retail parks, in market areas with minimum 80,000 inhabitants, sales surface covering between 600 and 800 sq. m, and stockroom covering between 120 and 200 sq. m., ideally included in the store area.

Date of Birth: 1988.

Type of products: womenswear, menswear, childrenswear and accessories.

Clothing lines: apparel, underwear, active sports.

Markets and Stores: 39 markets served by a network of 542 flagships and franchise stores; 31 markets covered by e-commerce platforms.

Retail franchising formula: on a sale-or-return basis.

Inspire me!

Customer experience

Music, scents, relaxation area, kids’ area, free Wi-Fi access, and much more. Everything is perfectly designed and organized! Customer experience is a key element for Terranova brand.

Terranova constantly works on innovating the following three areas related to customer experience: loyalty program, omnichannel services and customer care & app.

Loyalty Program

Terranova loyalty card was launched in 2013 and is now available in 10 countries, with more than 2 million subscribers, adding more and more every day. WE card can be used both online and in brick-n-mortar stores and is available as a mobile loyalty app for smartphones. The card is rewarding for both customers and the company, as it helps the latter to collect data to know consumers better and to increase their average basket spend. It is not just a loyalty program, but an opportunity to build a stronger relationship with your own customers every day.

Omnichannel Services

Terranova believes customers must be able to take advantage of any service in any touchpoint with the brand.

Therefore, Terranova customers can:

return to the store items they purchased online;
collect in store, for free, items they purchased online;
place their online order directly in store for items not available in store, with the help of Terranova sales team;
check online the availability of items in the nearest store.

Customer Care & App

Terranova customer care service is one of the best developed in the world: they are Terranova sales staff.

Their goal is to help customers with any issue that may arise, thanks also to the direct support of the teams at our corporate headquarters. Customers are never left alone in the stores or when shopping online as they can rely on the customer support offered by Terranova through social media and the website live chat service.Thanks to the official app, customers can buy clothes, use their loyalty card and find the nearest store.

Formula

Our retail franchising format

Innovative projects, accurate business analyses, personnel training, an unbeatable quality/price ratio.
Run your own Terranova franchise store!

Our ‘Sale-or-Return’ retail franchising format: main features

Our Sale-or-Return policy

There is no business without risk, but our franchisees face calculated risk because they only pay for what they sell, without the need to worry about unsold stock, which falls on Gruppo Teddy. Furthermore, it is Gruppo Teddy's responsibility to select samples and replenish stock, with the possibility for the franchisee to drastically lower internal structure costs.

Profitability

Each franchisee can plan on a good profitability compared to the investment made, when considering that the burden of unsold stock does not fall on franchisees but on Teddy. The assessment of business profitability is calculated on the capital the franchisee invests to open a point of sale. Profitability expectations per year can vary between 20% and 40% of the average invested capital, depending on the features and the country of the point of sale.

Guaranteed and constant profit margins on store takings.

One of the guarantees we offer our franchisees is their margin calculated on takings, which does not change even in the sale season.

SERVICES OFFERED TO FRANCHISEES

Before store opening

Research and assessment of the location of the store.Store opening planning and organization, including store interior design.Continuous professional development for store managers at the retail training center.

After store opening

Marketing, Communication and Sale strategies.

Permanent Training.

Proprietary business software for the management of the point of sale (from register to stockroom) and tools for an effective management of store activities: stock replenishing, prices.

REQUIREMENTS

What we ask to our franchisees

Skills: knowledge of the market, entrepreneurial spirit, passion.
Qualifications and/or qualifying courses: not required.
Education or past work experiences: past work experience in the retail sector is an advantage but not essential.

How to apply and open your franchise store

Store opening investment: 450€ per sq. m including the purchase of furniture for the store and the stockroom, light fittings, flooring, equipment and communication tools for the sales area, tech package, store design and planning. Further details will be given during the interview.
Maximum duration of the franchise agreement: 8 years.
Fees and royalties: no.
Deposit: yes, totaling 3% of the estimated yearly budget for the store according to the franchise agreement. When the store is opened the deposit is refunded.
Guarantees: yes, they must be given as bank deposits or bank guarantee, whose total amount will depend on each single case but with a minimum amount of 120,000 Euros.
Rent: to be borne by the franchisee.
Personnel Costs and Shop Management: to be borne by the franchisee.
Merchandise management and supply: to be borne by Gruppo Teddy for delivery to store (for EU countries) and to Customs (for extra-EU countries). Unsold stock will be collected at the end of the season.
Estimated time for the activities linked to store opening: from 4 to 6 months after the franchise pre-contract is signed and the deposit is paid, depending on whether the store is located in an EU country or extra-EU country.