Habib’s (Jawed Habib) Franchise Cost in India: Franchise Model, ROI, Eligibility Criteria & Steps to Apply

Jawed Habib Hair & Beauty—fondly known as Habib’s—is one of India’s largest and most trusted hair and beauty salon chains. Today, it operates 900+ salons across India and internationally in London and Singapore. Renowned for its science-based hairstyling techniques, professional training academies, and affordable service range, Habib’s franchise presents a compelling opportunity for beauty-entrepreneurs.

Franchise Model: FOFO with Comprehensive Support

Habib’s follows a Franchise-Owned, Franchise-Operated (FOFO) model.

Key Features:

• Franchisee funds and owns the outlet, while Habib’s provides brand, training, and operations support
• Store formats: compact (200–300 sq.ft) to full salons (500–1,500 sq.ft)
• Territorial rights and exclusive catchment zones ensured
• Ongoing support includes site selection, interior design, staff recruitment, SOPs, marketing, and training

This model ensures brand standards and business alignment while giving entrepreneurs autonomy.

Investment Breakdown

Expense	Estimated Cost (₹)	Details
Franchise Fee	3 – 7.5 Lakh	Varies by size and format
Infrastructure & Interiors	20 – 35 Lakh	Depending on store scale
Equipment & Fixtures	2 – 6 Lakh	Styling chairs, washstations, mirrors, etc.
Initial Inventory & Stock	2 – 4 Lakh	For salon products & consumables
Working Capital	5 – 10 Lakh	To cover salaries, rent, utilities
Marketing & Pre‑Launch	1 – 3 Lakh	Local campaigns and opening buzz
Total Initial Investment	₹25 – 50 Lakh	Full-scale salon may reach ₹40–50 Lakh

• Smaller express/academy models could start around ₹10–12 Lakh
• Larger outfits (1,000–1,500 sq.ft) typically need ₹30–40 Lakh+

Royalty & Revenue Sharing

Habib’s charges a royalty fee of 10–15% of monthly gross sales, depending on franchise type and territory.

This ensures brand consistency, training, digital tools, and marketing support without fixed monthly fees.

ROI & Payback Period

Available data and peer benchmarks show:

Payback:

• Smaller units: 12–15 months
• Larger setups: 18–24 months

Expected ROI:

• 20–30% annual profit margin, netting ~₹1.2‑3 Lakh/month on ₹6–8 Lakh revenue

A Delhi unit data snapshot:
Revenue ₹6 Lakh → Costs ~₹4.8 Lakh → Net ~₹1.2 Lakh → ≥20% margin

Eligibility Criteria & Ideal Franchisee

Key requirements include:

Space & Location

• 200–300 sq.ft (express) or 500–1,500 sq.ft (full salon/academy) in high‑footfall malls or street shops

Investment Readiness

• Comfortable with deploying ₹25–50 Lakh capital

Business Mindset

• Preference for experience in salon/hospitality, though passion and management skills are critical

Time & Operational Commitment

• Either self-manage or hire manager; brand compliance is a must

Clean Record

• No financial/legal baggage; regulatory licenses (FSSAI, GST, etc.) are mandatory

Step-by-Step Application Process

🟢 Step 1: Initial Enquiry

• Submit an enquiry via the official site detailing personal info, space, photos, and investment capacity.

🟢 Step 2: Initial Screening

• Habib’s team reviews credentials: investment, location, space.

🟢 Step 3: Site Visit & Feasibility

• Evaluation of site viability: demographics, visibility, footfall.

🟢 Step 4: Franchise Agreement

• Sign a 3‑ to 9‑year franchise contract; pay franchise fee.

🟢 Step 5: Setup & Interiors

• Work with brand consultants to design interiors, receive equipment, and hire staff.

🟢 Step 6: Training & Recruitment

• Attend in-depth training for stylists and management; staffing support from Habib’s.

🟢 Step 7: Pre‑launch Activities

• Local marketing, launch offers, and digital outreach.

🟢 Step 8: Launch & Ongoing Operations

• Window-opening with HQ involvement; franchisee benefits from regular operational and marketing support.

Pros & Cons of Partnering with Habib’s

✅ Pros:

• Powerful brand with national and international reach
• Structured training system (Habib Academy)
• Proven FOFO model with balanced risk
• Strong profit potential (20–30%)
• Scalable formats—academy, kiosk, full salon

⚠️ Cons:

• High upfront cost, especially for large salons
• Royalty fees (10–15%) affect profitability
• Staff recruitment and retention can be challenging
• Competitive market—cuts, spas, boutique salons

Expert Tips to Maximise Franchise Success

• Pick strategic locations near malls, colleges, corporates, or upscale residential areas
• Upsell services & courses: salon + training academy combo boosts income
• Run loyalty programs and digital campaigns via Instagram or local ads
• Maintain service quality: regular SOP & refresher modules
• Monitor KPIs: customer count, average ticket size, re-service rate, revenue per stylist

Market Trends & Competitive Context

• Indian salon market: projected to grow at ~12–15% CAGR—₹150–200 Bn segment by 2025–26
• High demand: grooming services, skincare, express salons, training academies
• Rival brands: Naturals, Green Trends, BBlunt, as well as boutique/unisex parlours
• Habib’s edge: integrated franchise + academy model, brand trust, technical training

🔚 Final Thoughts

Habib’s franchise offers a balanced, credible entry into India’s thriving salon and beauty market. With a minimum ₹25 Lakh investment, 10–15% royalty, and 12–24 months payback, franchisees stand to earn 20–30% annual returns if location, operations, and service quality align.

Key Takeaways:

• Space: 200–1,500 sq.ft (500+ sq.ft preferred)
• Investment: ₹25–50 Lakh
• Royalty: 10–15% of gross sales
• Payback: 12–24 months
• Net Margin: 20–30%

📌 Next Steps:

• Evaluate your investment capacity & identify potential spaces
• Submit a franchise enquiry via Habib’s official site
• Collaborate with HQ to assess site potential
• Prepare for setup, launch, and building a stylists team

With a strong brand, professional support, and proven business model, Habib’s franchise is ideal for entrepreneurs aiming to create a profitable presence in India’s salon landscape. Let me know if you’d like help evaluating locations or project ROI!