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, franchisees are not required to select samples and replenish stocks, which fall on Teddy: a great opportunity for a huge cost containment.
In the countries where we run our Loyalty Program, franchisees have the opportunity to apply for the franchising format on online sales.
One of the guarantees we offer our franchisees is their margin calculated on takings, which does not change even in the sale season.
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.