Hookah franchises - offers, requirements and features

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, the range of business areas is simply huge, so there are no problems with choosing a promising niche. However, as practice shows, some difficulties for novice businessmen begin at the stage of implementation and project management. According to statistics, the vast majority of young companies cease to exist after only a few years after opening. This is due to many factors, the main ones being the lack of financial resources and business experience, as well as fierce competition.

But there is an alternative way to invest money, namely the launch of a ready-made business. So, for example, now you can open a hookah franchise. This is very convenient, because you do not have to create a business model yourself and standardize the process of the enterprise functioning. All the features of such an investment and the most advantageous offers on the market will be discussed below.

Varieties of similarestablishments

Before you decide to buy a hookah store franchise, it is very important to decide what type of business you will be.

Today, smoking establishments are divided into the following types:

1. Youth. They have a wide range of smoking blends. The interior is decorated in a modern style, musical accompaniment has been created, and there is also a bar that sells various alcoholic drinks and cocktails. This format is one of the most common and popular today.
2. Traditional. In such places, people can enjoy smoking high-quality tobacco, as well as have fun playing backgammon or chess.
3. Club. Institutions of a closed type, which can only be entered with a special card.

Each hookah franchise has certain advantages and disadvantages that you should definitely consider when buying it. Aspiring entrepreneurs are best suited for a smoking establishment of a youth format.

Pros and cons of starting your own franchise business

Starting a ready-made business with professional support is less risky than starting a project from scratch.

Besides this, the hookah store franchise provides the following benefits:

• fully working system, recognizable brand, stylish room design;
• professional support at all stages of opening and operation;
• minimum investment to create a material and technical base;
• no need to recruit a large number of staff;
• free advertising;
• quick breakeven;
• well-established consumable supply system;
• low competition.

Despite the fact that the hookah franchise actually belongs to its creator, however, when you purchase it, you get your own business, which you can fully manage. As for the shortcomings, they also exist.

The most significant among them are the following:

• need for a lump-sum contribution;
• strict compliance with all requirements of the franchisor;
• impossibility of opening a business in small towns.

Besides this, in order for a hookah bar franchise in Moscow or any other metropolis to make a profit, it is very important to choose a product that enjoys good recognition in the market.

Features of opening smoking establishments

Before you start any business, you must first study it well and deal with all aspects. This will help to avoid many pitfalls in the process.

As for hookahs, they require careful study of the following nuances:

• powerful ventilation system with good air conditioning;
• comfort of the premises and quality of service for visitors;
• type of smoking equipment - classic or electronic;
• purchase mixes, hookahs and consumables;
• search, learning andformalization of staff;
• marketing campaign and service promotion on the market.

The last point should be given special attention. The thing is that Russian law prohibits the advertising of tobacco products. Therefore, you need to think in advance how you will attract potential customers to your establishment. Only after careful study of all these aspects can a hookah franchise be bought. Detailed knowledge of your own business will allow you to reach the level of profitability much faster and maximize the profitability of the company.

Legal

In the legislation of the Russian Federation there is no such definition as smoking establishments, however, their work is fully regulated.

In order to avoid any problems with regulatory authorities in the process of activity, it is necessary to comply with a number of acts:

1. PPB-S-3-81 - security requirements for the institution.
2. Resolution of the chief physician of Russia number 114, put into effect on May 30, 2003.
3. FZ No. 15 of February 203, 2013, regulating the creation of designated smoking areas.
4. The Law "On Advertising", which clearly defines the rules for promoting goods, services and companies on the market.
5. Decree of the Ministry of He alth of the Russian Federation No. 786Н, adopted on November 28, 2014.

In addition to all of the above, when buying a franchise of hookah clubs and opening a smoking establishment, sanitary standards andfire safety rules, unless you want to pay huge fines.

How much money will be needed to implement the project?

Acquisition of a hookah franchise in Russia requires the availability of start-up capital sufficient to start a business.

The main items of expenditure are as follows:

• registration of permits - 20,000 rubles;
• interior design - from 300,000 to 1 million rubles;
• purchase of furniture, equipment and consumables - from 250,000 rubles;
• rent of premises - from 30 to 80 thousand rubles.

In addition, you will be required to pay salaries to hired personnel on a monthly basis. It is impossible to give any figures here, since the salary depends very much on the specific region of the country.

What difficulties await?

Despite the fact that the hookah franchise provides a fully working scheme and professional support, nevertheless, in the process of work, you will certainly encounter the following aspects:

• selection and purchase of hookahs, smoking mixtures and accessories;
• search for a room with sufficient area and good location;
• decoration of the premises in accordance with all requirements;
• search and training of staff.

When opening a smoking establishment, you must understand that there are no trifles in business. Therefore, you must think carefully and work out even those aspects that at first glance may seeminsignificant.

Which franchise to choose?

Today, the market offers a large selection of proposals for the launch of smoking establishments, so it is very difficult for novice entrepreneurs to make a choice. As practice shows, many businessmen make many mistakes at the same time, as a result of which they later regret the wasted financial resources. To help them make the right choice, the best offers for hookah franchises will be considered below.

Smoking establishment "Mint"

So what is it? The Mint Lounge hookah franchise is perhaps one of the best hookah franchises that can be found on the market today. It was developed by the famous Kazan company Milovidov Group. The lump-sum payment for a product can vary from 800,000 to 1.2 million rubles. At the same time, the franchisor declares that the minimum income per month is 200,000. Thus, the payback period for investments is an average of 5 months. As for the percentage that the franchisee must deduct from net proceeds, information on it is not disclosed. Therefore, before signing the contract, carefully study it.

The main advantages of the Mint hookah franchise, customer reviews fully confirm this, are the following:

1. A well-designed business model.
2. Help in solving any questions and problems.
3. Professional training for all employees, which is held in Kazan in a specialcenter of Milovidov Group.
4. Free access to author's recipes for the preparation of smoking mixtures.
5. Assistance in conducting an advertising campaign and positioning a hookah in the market.

The uniqueness of the smoking establishments opened under this franchise is that every Saturday they host theme nights. At the same time, the entrepreneur does not have to come up with ideas for them on his own, since the franchisor takes care of all this.

Hookah Place-branded smoking establishments

The second most popular hookah franchise is Hooka Place. Today it is represented in more than 50 cities scattered throughout the country. Moreover, not so long ago the company entered the international market, and its establishments can be found even in neighboring countries.

Among the main advantages of the product are the following:

• high quality smoking blends from renowned suppliers;
• original author's design of the premises;
• 24/7 support and assistance in solving issues of any complexity.

The exclusive highlight of Hookah Place establishments is that visitors pay 1,000 rubles for admission, regardless of the region. For this amount, they receive two hookahs and several soft cocktails. In addition, the establishment has a separate area called Water Place, where experienced bartenders prepare amazing drinks according to original recipes collected around the world.

Smoke House Franchise

Smoke House -is a young but dynamically developing company, which, despite its age, has already managed to enter the Russian franchise market and firmly establish itself on it. The first smoking establishment under this brand appeared in Siberia, and today they can be found in many cities of the Russian Federation. The main advantage of the company is the low entry threshold. The one-time payment made at the conclusion of the contract is only 120,000 rubles, and the average monthly profit is at the level of 200 thousand.

In addition to this, the following benefits are provided to franchisees:

1. The client receives detailed instructions on how to conduct business.
2. Termless information support for any questions.
3. Help in finding the best premises and hiring qualified employees.

Thus, the "Smoke House" franchise can be considered one of the best options for business start-ups, since it combines the minimum required investment and a good level of profitability.

Offer from "The Smoke"

This company was founded in Omsk back in 2015, and today it is one of the most recognizable hookah chains in Russia. The cost of the franchise is 1 million rubles, and the break-even period can vary from 4 to 10 months, depending on the specific region. Unlike many other companies, "The Smoke" does not take a percentage of the proceeds as a roy alty, but a fixed payment of 10,000 rublesstarting from the second month of operation. Thanks to this, the entrepreneur working under this franchise makes almost all the profit.

Conclusion

If you are looking for a direction for entrepreneurial activity, but do not have a large amount of money, then opening a hookah franchise will be the perfect solution for you. Many novice businessmen are attracted to this direction due to the quick payback and ease of operation. At the same time, the potential profit from a smoking establishment is not limited by anything, but depends on the literacy of the approach to managing the company. Therefore, buy a franchise, open a hookah and start earning.