TBZ – The Original’s First Franchisee Store Opens In Jharkhand
Jewellery retailer Tribhovandas Bhimji Zaveri Limited – The Original (TBZ) has signed its first franchise agreement for its upcoming store in Dhanbad, Jharkhand, that opened in early November. This is the first franchisee store of TBZ.
The stores will be operated on a “franchisee owned, franchisee operated” (FOFO) model, entailing the entire store inventory to be on the books of the franchisee. This will help TBZ to scale up its domestic operations at a faster pace in an asset-light manner without increasing its balance sheet size, resulting in improved Return on Capital Employed (ROCE) and Return on Equity (ROE).
The franchisee stores will increase the momentum of retail expansion across key markets and reach out to various communities in satellite townships, following successful launches in metro cities. This will help in adding incremental sales, expanding retailing space and enhancing pan-India presence of TBZ.
According to Shrikant Zaveri, chairman and managing director, TBZ Limited, “Every franchisee store will offer a wide array of innovative and attractive jewellery designs with an added attraction of custom-made products. We will handhold our franchisee partners in the initial stages to take them through the learning curve of doing business with us and serving customers the TBZ-The Original way. We intend to pace ourselves comfortably through the process to ensure we do not compromise in the quality of TBZ-The Original experience.”
With this new business strategy, TBZ will remain focused on growth and expansion over the coming years. Going forward, the store expansion will be through a right mix of company-owned and franchisee stores, helping the company to achieve its target of growing its retail space from 93,000 sq ft currently to around 1,50,000 sq ft over the coming 2-3 years.