Nike Franchise Cost in India | Procedure, Documents Required

Nike is a leading global brand that is renowned for its high-quality athletic footwear, apparel, and accessories. With a strong brand presence in several countries around the world, Nike has now expanded its operations to India by opening up franchise stores across the country. The company’s entry into the Indian market has been met with immense enthusiasm from both sports enthusiasts and fashion-conscious consumers.

Nike franchise stores in India offer a wide range of products for men, women, and children, catering to different sports and fitness activities. These stores are located in prime locations across major cities and are designed to provide a seamless shopping experience for customers.

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Nike Franchise Cost in India

Investing in a Nike franchise in India can be a profitable opportunity for entrepreneurs and business owners looking to enter the sports and fitness retail market. However, before making any investment decisions, it is important to understand the Nike franchise cost in India.


The initial investment required for a Nike franchise in India varies depending on the location, size, and type of store. Typically, the investment required ranges from Rs. 50 lakhs to Rs. 2 crores, which includes the franchise fee, store setup costs, inventory, and working capital. The franchise fee alone can range from Rs. 5 lakhs to Rs. 25 lakhs, depending on the location and size of the store.

Apart from the initial investment, franchisees also need to pay ongoing royalty fees to Nike, which are typically calculated as a percentage of the store’s gross sales. The royalty fee can range from 3% to 8%, depending on the type of store and the location.

In addition to the franchise fee and ongoing royalty fees, franchisees also need to incur marketing and advertising expenses to promote the store and attract customers. Nike provides marketing support and branding materials to franchisees, but the cost of executing marketing campaigns and promotions is borne by the franchisee.

The Nike franchise cost in India can be significant, but the potential for high returns makes it a lucrative opportunity for entrepreneurs and business owners. However, it is important to conduct thorough market research and due diligence before investing in a Nike franchise to ensure that it is the right fit for your business goals and financial capabilities.

Procedure To Get a Nike Franchise in India

Getting a Nike franchise in India involves a detailed process that begins with submitting an application to Nike’s franchise team. Here are the steps involved in obtaining a Nike franchise in India:

1. Initial Inquiry

The first step is to submit an initial inquiry to Nike’s franchise team. This can be done through the company’s website or by reaching out to the franchise team directly. The franchise team will provide information on the requirements, investment costs, and other details related to the franchise.

2. Application and Background Check

After receiving the initial inquiry, the franchise team will send an application form to be filled out by the prospective franchisee. The application form includes details such as the franchisee’s personal and business background, financial capabilities, and proposed location for the Nike store. The franchise team will conduct a background check on the applicant to ensure that they meet the company’s standards and have the necessary financial resources to run the franchise.

3. Site Evaluation and Approval

Once the application is approved, the franchise team will conduct a site evaluation to determine the suitability of the proposed location for the Nike store. The evaluation includes factors such as accessibility, visibility, and foot traffic. If the proposed location meets Nike’s standards, the franchise team will provide approval to proceed with the franchise.

4. Franchise Agreement and Fee

Once the site is approved, the franchise team will provide a franchise agreement to the prospective franchisee. The agreement includes details such as the franchise fee, royalty fee, and other terms and conditions related to the franchise. The franchise fee is typically paid upfront, and the royalty fee is paid on an ongoing basis as a percentage of the store’s gross sales.

5. Training and Support

Nike provides extensive training and support to franchisees to ensure that they have the knowledge and resources to run a successful store. This includes training in product knowledge, store operations, customer service, and marketing. Nike also provides ongoing support through field visits and regular communication to ensure that franchisees are meeting the company’s standards and achieving their business goals.

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Factors Impacting the Profit of Nike Franchise in India

The profitability of a Nike franchise in India can vary depending on several factors, including the location, size of the store, and competition in the area. However, owning a Nike franchise in India has the potential to be a lucrative investment opportunity.

One of the key advantages of owning a Nike franchise in India is the brand recognition and customer loyalty that come with it. Nike is a globally recognised brand with a strong reputation for quality and innovation, which can help attract customers to the store. Additionally, Nike’s marketing and branding efforts can help promote the store and drive traffic, which can increase sales and profitability.

Another factor that can contribute to the profitability of a Nike franchise in India is the company’s focus on product innovation and development. Nike regularly introduces new products and technologies, which can help keep customers engaged and interested in the store. Additionally, Nike’s focus on sustainability and social responsibility can appeal to customers who are looking for brands that align with their values.

The location of the store can also impact the profitability of a Nike franchise in India. Stores located in high-traffic areas or in popular shopping centres can attract more customers and generate higher sales. However, the cost of leasing or renting a space in these areas can also be higher, which can impact the overall profitability of the store.

In addition to sales revenue, Nike franchisees can also generate revenue through ancillary services such as shoe customization, product personalization, and sports coaching. These services can help increase customer engagement and loyalty while also generating additional revenue streams for the franchisee.

It is important to note that the profitability of a Nike franchise in India also depends on effective management and cost control. Franchisees need to manage inventory, staffing, and overhead costs effectively to ensure that they are operating efficiently and maximizing profits. Effective marketing and promotional strategies can also help attract customers and increase sales. 

Things To Keep In Mind While Applying for a Nike Franchise in India

Applying for a Nike franchise in India can be a complex process, and there are several key things to keep in mind to ensure a successful application. Here are some important factors to consider when applying for a Nike franchise in India:

  • Financial Capabilities: One of the key factors that Nike considers when evaluating franchise applications is the applicant’s financial capability. Prospective franchisees should have a strong financial standing and the necessary resources to invest in the franchise. This includes the franchise fee, royalty fees, and other start-up costs such as inventory and marketing expenses.
  • Location: The location of the store is another critical factor to consider when applying for a Nike franchise in India. Franchisees should carefully evaluate potential locations based on factors such as foot traffic, accessibility, and competition. Nike typically prefers locations in high-traffic areas such as shopping malls, commercial complexes, or popular retail destinations.
  • Market Research: Conducting thorough market research is essential to understanding the demand for Nike products in the proposed location. Franchisees should analyse the local market and competition to identify gaps and opportunities and tailor their product offerings and marketing strategies accordingly.
  • Operational Expertise: Nike expects franchisees to have a solid understanding of store operations, inventory management, and customer service. Prospective franchisees should have relevant experience or expertise in these areas to ensure the successful operation of the store.
  • Brand Alignment: Nike places a strong emphasis on brand alignment and expects franchisees to uphold the company’s values and brand image. Franchisees should demonstrate a strong understanding of Nike’s brand and mission and ensure that their business practices align with these values.
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FAQs on Nike Franchise Cost in India

Here are some frequently asked questions on Nike Franchise Cost in India:

Who owns Nike stores in India?

Nike operates its own retail stores and authorised dealerships in India. The company owns and operates several flagship stores in major cities such as Mumbai, Delhi, and Bangalore. Additionally, Nike has partnerships with several authorized retailers and distributors in India, who operate Nike-branded stores and sell Nike products. 

What is the profit margin on Nike shoes?

The profit margin on Nike shoes varies depending on several factors, such as the type of shoe, production costs, and pricing strategy. As a publicly traded company, Nike does not disclose specific profit margin figures for its products. However, it is widely known that Nike’s profit margin is generally higher on its premium products and limited-edition releases, as these items command higher prices and are often in high demand.

How do I become a franchisee of Nike?

If you are interested in becoming an authorized Nike retailer, you can visit the Nike India website and apply to become a partner. However, note that the application process is highly competitive and involves meeting certain criteria and standards set by Nike. Additionally, Nike periodically reviews its retail partnerships and may terminate agreements with underperforming partners.

Is Nike a profitable business?

Nike operates in India through its own retail stores and authorised dealerships. While the company does not disclose specific financial information about India, it has been investing in the country and expanding its presence. In its Q2 2022 earnings call, Nike reported strong double-digit growth in the Asia Pacific and Latin America regions, which include India.

Why is Nike a good investment?

Nike is a good investment for several reasons. Firstly, it is a well-established and globally recognised brand with a loyal customer base. Secondly, Nike has a strong track record of financial performance, with consistent revenue growth and profitability.

Additionally, the company has a robust e-commerce presence and has been investing heavily in technology and innovation to stay ahead of the competition. Finally, Nike’s commitment to sustainability and social responsibility may attract socially conscious investors.

Applying for a Nike franchise in India requires careful consideration and preparation. Prospective franchisees should conduct thorough research and due diligence to ensure that they meet the company’s requirements and have the necessary resources and expertise to operate a successful franchise. With the right approach and preparation, owning a Nike franchise in India can be a rewarding investment opportunity for entrepreneurs and business owners.

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