InStreet franchising plans unboxed

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This sporty, sneaker fashion chain is part of the Turkish footwear giant, the FLO Group, who have an annual consolidated sales figure of $1 Billion. Starting the subsidary brand in 2014, InStreet already makes up 150 of FLO’s 700 stores and has reached the number one sneaker specialty retailer position in Turkey. The Group can now also boast about being the second biggest e-commerce footwear retailer in their home country.

When you enter an InStreet store you will find a wide range of products from leading brands such as Nike, Adidas, Puma, Under Armour and Sketchers, combined with the companies own brands and licenced brands. The business offers a 50/50 split between their own brands and global brands for a healthy balance of profit and recognition. Furthermore, InStreet incorporates the same 50/50 ratio split between footwear and apparel offerings within their stores.

After building up a solid reputation for quality sports fashion in Turkey, InStreet’s first international store opened in 2019. On top of their 120 domestic stores in Turkey, the chain now operates with over ten stores in five countries; namely Uzbekistan, Azerbaijan, Cyprus, Ukraine and Georgia. FLO have an active short-term strategy to open hundreds of stores further into Eastern Europe, Commonwealth Independent States, Africa and the Middle East over the next three years.

According to the FLO Group’s Global Business Development Manager, Cem Ünverdi, the number of stores is increasing all the time. “As of today,” Mr Ünverdi said, “All domestic stores are company owned. Whereas, stores abroad are owned on a half company, half franchisee basis.”

Mr Ünverdi, further explained that in setting up an InStreet store, partners have access to Flo Group’s retail and franchise experience. “All the needed know-how is provided and full operational support including P&L, leasing, operations, training, pricing and other retail tools.” Cem, noted that, “There isn’t any start-up fee or royalty fees,” when opening an international franchise. “Your break-even point and profits are determined on the country, region and the size of the investment,” he said.

UNITS

• Total units: 160+
• Turkey has 150 company owned units
• Uzbekistan, Azerbaijan, Cyprus, Ukraine and Georgia share 10 stores currently

SUPPORT FOR THE FRANCHISE

Know-how and full operational support are provided, including:

• P&L
• Leasing
• Operations
• Training
• Pricing
• Plus, other retail tools

SYSTEM REQUIREMENTS

The average space requirement for the InStreet store is 150-250 m2 to hold their product range between 8000-9000 pieces.

Best locations are shopping malls, and high street locations.

KEY FIGURES

• No start-up fees
• No royalties
• Investment figures vary depending on size and location

Author

Adam Braksator

Journalist