The average Nike franchise cost is $107,500. Entrepreneurs with at least $75,000 in funding used to apply to become Nike franchisees. The most expensive Nike franchises used to cost up to $140,000. Nike rarely works with franchisees now. Instead, the company allows retailers to resell its products through the Nike Marketplace Partner program.
To become an authorized Nike retailer, you can apply using the company’s online form. You will need a business license and retail storefront. Nike requires a minimum order of $5,000 for new retailers. The average cost of a Nike retail store is $200,000 to $300,000.
Distributorship
If you have an existing store, you can also sell Nike products by applying for distributorship. You will need an investment capacity of Rs 50 lakh to 1 crore before applying for Nike franchise.
Online Sales and Suppliers
You can sell Nike products online if bought from a licensed source. Otherwise they are infringing goods.
The total value of the Nike deal over six years is $46.45 million, an average of $7.7 million per year.
Nike’s suppliers include Pou Chen, PT Pan Brothers, Fulgent Sun International, Delta Galil and Eagle Nice.
Nike built its business on wholesaling shoes to retailers, but now sells more directly to shoppers.
The pricing and popularity of running shoes helps keep profit margins around 20 percent for retailers.
Retailer Costs
How much do retailers pay for Nikes?
- Business license and retail storefront required
- Minimum initial order: $5,000
- Average initial store cost: $200,000 to $300,000
Distributorship Investment
- Pre-application investment: Rs 50 lakh to 1 crore
Profit Margins for Retailers
- Average profit margin: 20%