Interested in Owning Your Own Alfamart? Here's the Minimum Initial Capital Required
Interested in Owning Your Own Alfamart? Here’s the Minimum Initial Capital Required
Jakarta, CNBC Indonesia - Alfamart outlets can easily be found on almost every corner of Jakarta. The franchise system increasingly supports the expansion of this minimarket network.
As a result, Alfamart outlets have spread to other cities in Indonesia and even abroad.
So, how much capital is needed to invest in opening your own Alfamart outlet? What should you know?
Based on information from the company’s official website, Alfamart offers at least three franchise cooperation schemes that prospective entrepreneurs can choose from:
- New Outlet Franchise
This cooperation involves opening a new Alfamart from a location proposal by the prospective franchisee. The stages for opening a new Alfamart franchise include:
Initial presentation
Location evaluation and approval
Proposal presentation
Cooperation agreement
Store opening
Alfamart also provides rack type options tailored to the amount of capital and building size owned by the prospective franchisee:
9-rack store type (30 m²): Rp300 million
18-rack store type (60 m²): Rp350 million
36-rack store type (80 m²): Rp450 million
45-rack store type (100 m²): Rp500 million
This capital already includes:
Franchise fee of Rp45 million for 5 years
Electrical installation
Store equipment and air conditioner
Cash register and retail information system
Shop sign and pole sign
Store permits
Promotion and store opening preparations
It should be noted that this investment estimate excludes property investment and may change according to conditions during the store opening process.
- New Outlet Franchise - Conversion
This cooperation offers franchising to owners of local minimarkets or grocery stores who want to expand their business further. Alfamart provides two conveniences for store owners taking this programme:
Recognition of goods owned by the local minimarket or grocery store as opening stock for the Alfamart franchise outlet
Racks owned by the local minimarket or grocery store can be used and recognised as a reduction in investment costs (racks must meet Alfamart store rack standards)
The stages in this cooperation start from:
Initial presentation
Stock opname 1
Cooperation agreement
Stock opname 2
Conversion store opening
- Takeover Outlet Franchise
The final cooperation is by purchasing an operating Alfamart outlet at a predetermined “package” price. The capital for takeover outlet franchise varies starting from Rp800 million.
This capital already includes:
Franchise fee of Rp45 million for 5 years
Location rental for 5 years
Store equipment and air conditioner
Cash register and retail information system
Shop sign and pole sign
Store agreement
Goodwill
The stages in the takeover outlet franchise cooperation are:
Initial presentation
Purchase agreement
Transfer of permits
Cooperation agreement
Takeover
Alfamart Royalty Fees
Partners opening an Alfamart outlet will be charged royalties. This fee is calculated progressively from the net sales of the relevant outlet and does not include tax.
Net sales Rp0 to Rp150,000,000: royalty 0%
Net sales Rp150,000,001 to Rp175,000,000: royalty 1%
Net sales Rp175,000,001 to Rp200,000,000: royalty 2%
Net sales Rp200,000,001 to Rp250,000,000: royalty 3%
Net sales above Rp250,000,001: royalty 4%
Requirements for Opening an Alfamart Outlet
Anyone can open an Alfamart outlet through a franchise cooperation. However, several requirements must be met, namely:
Have an interest in the minimarket industry
Indonesian citizen with a Business Entity (CV, PT, Cooperative, and Foundation)
Already own or will own a business location with a minimum sales area of 100 m² (excluding warehouse and administrative space). Total land area approximately 150 m² to 250 m².
Meet permit requirements such as Neighbour’s Permit, Domicile Permit, SIUP, TDP/NIB, NPWP, NPPKP, STPW, IUTM (varies by region).
Willing to follow the systems and procedures applicable at Alfamart.
These are the requirements and capital needed to open an Alfamart outlet with various franchise models.