Written By: Khushboo Verma

Khadim's is India's second-largest footwear retail chain with over 890 stores across the country. Founded in 1965, this Kolkata-based brand has built a strong reputation for affordable, quality footwear. If you're planning to enter the footwear retail business in 2026, here's everything you need to know about starting a Khadim's franchise.

Why Choose Khadim's Franchise?

The Indian footwear market continues growing, driven by rising disposable incomes and fashion awareness. Khadim's offers specific advantages for entrepreneurs.

• Established Brand: With 60 years in the market, Khadim's has strong brand recognition across 25 states. The company operates primarily through franchises, with 76% of outlets running on this model.
• Diverse Product Portfolio: The brand offers footwear for men, women, and children across categories including formal shoes, casual footwear, sports shoes, and ethnic designs. Products range from ₹300 to ₹2,500.

Current Market Position (December 2025)

Khadim's operates approximately 890 retail stores across India. The company has  strong presence in eastern and southern states, with expansion continuing in northern and western regions.

In 2025, Khadim's completed a strategic demerger, separating its distribution and manufacturing business into KSR Footwear Limited. This move allows the retail division to focus entirely on franchise operations and customer experience.

The company reported a gross margin of 46.9% in Q4 FY25, showing healthy profitability. Additionally, Khadim's is expanding into athleisure segments and quick commerce partnerships to capture evolving market trends and younger demographics.

Eligibility Criteria

To qualify for a Khadim's franchise, you must meet these requirements:

• Minimum age of 21 years
• Financial capacity to invest ₹20-30 lakh
• Business-oriented mindset
• Retail experience preferred but not mandatory
• Willingness to follow company guidelines
• Ability to hire and manage 3-5 staff members

Investment Breakdown for Khadim's Franchise

The total investment required ranges between ₹20-30 lakh for a standard outlet. Here's the detailed cost structure:

Additional Costs:

The interior work must be executed by Khadim's appointed vendors. There's a mandatory launch marketing campaign costing approximately ₹1 lakh, split equally between franchisee and company.

Rental costs are separate if you don't own the property. In metro cities, expect ₹50,000 to ₹1.5 lakh per month. In tier 2-3 cities, rental costs range from ₹20,000 to ₹60,000 per month.

Space and Infrastructure Requirements

• Showroom Area: 1,000-1,200 square feet minimum for the main retail area
• Warehouse Space: 500-700 square feet for inventory storage and stock management
• Minimum Frontage: 14 feet for visibility and customer accessibility
• Ceiling Height: Minimum 10 feet for proper lighting and ventilation
• Location Type: High-traffic commercial areas like shopping malls, main markets, or busy high streets

The location directly impacts business performance. Prioritize areas with high footfall, good visibility, and easy accessibility.

Required Documents and Licenses

Business Registration Documents:

• Company registration (Proprietorship/Partnership/LLP/Private Limited)
• GST registration certificate
• PAN card and Aadhar card of owners/partners
• Partnership deed (if applicable)
• Bank account details with cancelled cheque

Legal Licenses:

• Trade license from municipal authority
• Shop and Establishment Act registration
• Fire safety certificate for commercial spaces
• Local municipal permits as required

Application Documents:

• Identity proof (Voter ID, Driving License, Aadhar card)
• Address proof of business location
• Financial documents showing investment capacity

Step-by-Step Application Process

• Step 1: Visit www.khadims.com and navigate to 'Franchisee Partnership' or 'Contact Us' section
• Step 2: Fill the franchise application form with complete details including personal information, business background, proposed location, and investment capacity
• Step 3: Submit the application form online
• Step 4: Wait for company response, typically within 20-30 days
• Step 5: If shortlisted, attend interviews with the franchise development team
• Step 6: Company will conduct site evaluation to assess location feasibility
• Step 7: Sign the franchise agreement after legal review
• Step 8: Complete documentation and pay initial fees
• Step 9: Execute store setup with company-approved vendors
• Step 10: Receive staff training
• Step 11: Stock inventory as per company guidelines
• Step 12: Launch your store with company support

The complete process from application to store opening takes approximately 1-2 months.

Franchise Agreement Terms

Understanding the agreement terms is crucial before committing to the investment.

• Agreement Duration: 5 years with renewal option
• Renewal Policy: No additional charges for renewal
• Territorial Rights: Exclusive territory provided, ensuring no other Khadim's outlet opens in your designated area
• Product Restrictions: Cannot sell competing branded footwear in the Khadim's franchise store
• Operational Compliance: Must follow company guidelines for store design, product display, pricing, and customer service
• Royalty Structure: Approximately 20% on sales (verify exact percentage with company during agreement discussions)

The franchise agreement protects your territorial exclusivity while ensuring brand standards are maintained across all outlets.

Support Provided by Khadim's

• Comprehensive Training: Training programs for staff and managers covering operations, customer service, product knowledge, billing systems, and sales techniques
• Billing Software: Company provides billing systems for transaction management, inventory tracking, and sales reporting
• Staff Uniforms: Uniforms provided to maintain professional appearance and brand identity
• Marketing Support: 50% cost sharing on promotional activities, discount campaigns, advertising, and festive offers
• Interior Design: Complete guidance and execution through company-approved vendors ensuring brand standards
• Store Setup Assistance: Help with fixture installation, product display arrangement, visual merchandising, and signage
• Ongoing Support: Regular assistance for inventory management, operational challenges, stock planning, and business scaling
• Product Supply: Regular and timely supply of products based on seasonal demand and sales performance

Staffing Requirements

A Khadim's franchise requires 3-5 employees minimum:

• Store Manager: Oversees daily operations, staff management, inventory control, customer complaints, and sales reporting. Salary range: ₹12,000-₹20,000 per month.
• Sales Personnel: 2-3 people for customer service, billing, product assistance, and store maintenance. Salary range: ₹8,000-₹12,000 per person per month.
• Stock Assistant: Manages inventory, warehouse, stock replenishment, and coordination with company for product supply. Salary range: ₹8,000-₹12,000 per month.

Khadim's provides comprehensive training for all staff members ensuring they understand product features, customer service standards, and operational procedures.

Monthly Operational Expenses

Understanding recurring costs helps in financial planning:

Total monthly expenses typically range from ₹80,000 to ₹1.5 lakh depending on city tier and store operations.

Profit Margins and Revenue Potential

• Profit Margin: 28-36% on products, increasing with sales volume
• Daily Sales Target: ₹10,000-₹12,000 minimum expected for sustainable operations
• Monthly Revenue: ₹5-15 lakh depending on location, season, and customer footfall
• Break-Even Period: 12-18 months with efficient management
• ROI Timeline: Approximately 1 year with good performance and location
• No Monthly Targets Initially: New franchisees can build customer base without pressure

For instance, if your store generates ₹8 lakh monthly revenue at 30% margin, your gross profit is ₹2.4 lakh. After deducting operational expenses (₹80,000-₹1.2 lakh), net profit ranges from ₹1.2-1.6 lakh per month.

Seasonal Revenue Patterns:

• Peak Season (October-February): Sales increase by 40-60% during Diwali, Durga Puja, wedding season, and New Year
• Moderate Season (June-September): Back-to-school shopping drives children's footwear sales
• Low Season (March-May): Regular sales with occasional promotional offers

Key Advantages and Challenges

Advantages

• Established Brand: 60 years of market presence with strong brand recall among Indian consumers
• Proven Franchise Model: 76% of outlets operate through franchises successfully
• Affordable Product Range: Competitive pricing ensures steady customer flow and repeat purchases
• No Initial Sales Targets: New franchisees can grow organically without monthly pressure
• Comprehensive Support: From setup to operations, complete assistance provided at every step
• Exclusive Territory: Protection from direct competition within designated area
• Diverse Portfolio: Products for all demographics across age groups and occasions

Challenges to Consider

• Location Dependency: Success heavily depends on choosing the right location with adequate footfall
• Competition: Face competition from established brands like Bata, Liberty, Relaxo, Metro Shoes, and Paragon
• Initial Investment: ₹20-30 lakh may be significant for first-time entrepreneurs without prior business experience
• Inventory Management: Must maintain adequate stock levels during peak seasons to avoid losing sales
• Market Saturation: Some cities already have multiple Khadim's outlets, limiting new franchise opportunities
• Seasonal Fluctuations: Revenue varies significantly between peak and low seasons affecting cash flow

Tips for Running a Successful Khadim's Franchise

• Choose Location Wisely: Spend adequate time on market research before finalizing location. Analyze competitor presence, customer demographics, and footfall patterns.
• Maintain Stock Levels: Keep popular sizes in stock (7-10 for men, 5-8 for women). Stock depletion during peak season leads to lost sales opportunities.
• Festival Planning: Increase inventory 30-40% during Diwali, Durga Puja, wedding seasons, and back-to-school periods. Plan procurement 2 months in advance.
• Customer Service Excellence: Train staff to provide detailed product knowledge and personalized service. Repeat customers drive 40-50% of long-term revenue.
• Financial Tracking: Monitor daily sales, expenses, and inventory turnover closely using provided billing software. Review monthly performance against targets.
• Local Marketing: Participate actively in company marketing campaigns. Additionally, engage with the local community through events, sponsorships, and social media.
• Staff Management: Maintain motivated staff through timely salaries, incentives on sales performance, and recognition programs.

Final Thoughts

Starting a Khadim's franchise in 2026 offers a viable business opportunity in India's growing footwear retail sector. With investment ranging from ₹20-30 lakh, you can establish a business backed by a 60-year-old trusted brand. The franchise offers profit margins of 28-36% and typically breaks even within 12-18 months.

Success depends on three critical factors: location selection, operational efficiency, and customer service quality. Before applying, evaluate your financial capacity for both initial investment and sustaining operations for 12-18 months until break-even. Analyze local market conditions, existing competition, and Khadim's presence in nearby areas.

Additionally, assess your ability to dedicate time and energy, especially during the initial 6-12 months when hands-on involvement is crucial for establishing the business. With proper planning, efficient execution, and commitment to company standards, a Khadim's franchise can generate steady income and build a successful retail business for years to come.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.