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Franchise Business Model

Operating Margin more than 20%
Next time reservation rate 78%
Repeater Sale composition ratio 85%
Investment recovery period is short

Balance of payments model

60㎡, 5beds, 5people
<Monthly sales model>

Item
Amount
(USD)
Sales ratio
Sales
30,000
100.0%
Personnel
expenses
12,000
40.0%
Rental
expenses
3,600
12.0%
Utilities
600
2.0%
Depreciation
expenses
900
3.0%
Communication
expenses
300
1.0%
Advertising
expenses
900
3.0%
Sanitation
expenses
900
3.0%
Supplies
expenses
600
2.0%
Credit card
commission
600
2.0%
Miscellaneous
expenses
600
2.0%
Royalty
3,000
10.0%
Total cost of
sales
24,000
80.0%
[Operating
profit]
6,000
20.0%

Initial Costs (Per shop)

※Actual contract is area franchise in one country. Not per shop.

Classification
Item
Amount
(USD)
Affiliation
agreement
Affiliation
fee
35,000
Total
35,000
Interior
facilities
Construction
expenses
30,000
Equipment
expenses
10,000
Fixtures
expenses
3,000
Beds,
Uniform etc.
7,000
Total
50,000
Preparations
Recruitment
expenses
3,000
Opening
advertising
expenses
3,000
Personnel
expenses
(2months)
24,000
Total
30,000
Total of
the initial costs
115,000

FAQ

faq icon

  • Q

    Question?

    With regard to the prospective recovery period and the initial investment value.
    A
    The initial investment is about USD100,000～USD200,000 (varies according to the property) per shop, and a 2～3 year investment recovery period is the target.
  • Q

    Question?

    With respect to the customers' profile
    A
    The customer profile of KARADA overseas is middle income to wealthier people because of the higher priced zone of our service compared with general massage services.
  • Q

    Question?

    Breakdown and composition ratio of the main costs
    A
    Personnel expenses (Sales ratio: about 40%) and property rent (about 10%～15%).The business model without stock achieves a higher profitability.
  • Q

    Question?

    What is the frequency of shop visits by the customers?
    A
    The average visits to the shop by repeat customers is 2～3 times/month.
  • Q

    Question?

    How will the personnel's training and development be implemented?
    A
    We dispatch a Japanese therapist from our Headquarters to handle the recruitment and education of suitable job applicants. Since we have acquired the training program by training some thousands of therapists, there is no problem with training inexperienced staff.
  • Q

    Question?

    Will be support continued after opening the shop?
    A
    After opening the shop, we assist with development of the local staff and establishment of the business by supporting the shop’s management and follow-up of the technique.

The Flow

Inquiries Inquiries
01

Inquiries

Please contact us using the inquiry form

10 months before

Input the outline
of your company

After confirming the content of the inquiry, our staff will reply by email

9 months before
Input the outline<br>of your company Input the outline<br>of your company
02
Explanation of the outline of Franchising Explanation of the outline of Franchising
03

Explanation of
the outline of Franchising

Explanation of the support content, visiting our shop, treatment experience

8 months before

Meeting at
our headquarter

Visiting to the Head Office in Japan, our training center, shops, andpresentation of the content of the agreement

7 months before
Meeting at our headquarter Meeting at our headquarter
04
Affiliation agreement Affiliation agreement
05

Affiliation
agreement

6 months before

Preparation for
opening the shop

Selection of a suitable property, recruiting personnel, training before opening the shop.

3 months before
Preparation for opening the shop Preparation for opening the shop
06
Opening Opening
07

Opening

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After confirming the details, our staff will contact you.

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