FOREVER 21 Franchise Cost and Profit Margin – Review
Is forever 21 a franchise? Forever 21 as a business was created by Do Won and Jin Sook Chang in 1984 after they moved from South Korea to the United States in 1981. Forever 21 headquarters is situated at LA, California. According to Forbes in 2014, Forever 21 made close to $4 billion in revenue and was awarded the 122nd largest company in the USA.
HOW MUCH DOES A FOREVER 21 FRANCHISE COST?
Do you know how much franchising a Forever 21 cost? Forever 21 is an American fashion outlet that was founded in the year 1984 in Los Angeles, California. They have over 600 stores across the United States of America, the United Kingdom as well far as the Middle East. About 60% of their apparel is manufactured in China with an average store size of about 40,000 square feet. The success of the company has made a lot of people to seek how much is Forever 21 Franchise?
In the course of the article, we will make an expository note on information about Forever 21 Franchise and if they are available to prospective entrepreneurs.
HISTORY OF THE FOREVER 21 FASHION OUTFIT
The business was established by Do Won and his wife Jin Sook Chang after they migrated from South Korea to The United States. They started off with designs similar to the ones in trend then in South Korea, which were targeted at residents of the Los Angeles Korean American community. It was an instant hit in the 1st year. They made a total sales of about $700,000 in the 1st year of operation and it was a wild speculation at that time, considering their growth, that the Forever21 would sell franchise later on in the nearest future.
In the year 2014, the company made about $4 billion as revenue and rated as the 122nd largest company in the whole of the United States.
PRODUCTS ON OFFER AT FOREVER 21
What Forever 21 has to offer in their stores are clothing, accessories, beauty products for men and women and they are known for their trendy offerings as well as reduced prices for all their items.
Unlike their name that portrays the age 21, they don’t only offer to sell to ladies within that age bracket, but to all gender, ages and class of human beings.
They have various names for their stores across the world. You will get hold of store names as Forever 21, XXI Forever, Forlove 21 and Heritage 1981. They also have an e-commerce sites where they sell off their merchandise over the internet.
They were engrossed at a time with a lot of controversies, which seemed to soil the name of the company, and give them a bad reputation, especially among investors and enetrpreneurs seeking Franchise opportunities with Forever 21. But with the adequate Public Relations and legal consultations, they were able to scale off the controversies.
CONTROVERSIES SURROUNDING THE FOREVER 21 COMPANY
- EMPLOYEE SAFETY AND RELATIONS: The Forever 21 Company was sued in the year 2001 by the Asian Pacific American Legal Center for going against labor laws. The company was accused of paying less than the minimum wage to 19 contracted employees of the company. In another case, some other 5 Forever 21 employees sued the company for not being compensated for the extra time they worked during lunch breaks.
- COPYRIGHT ISSUES: Sadly, about 50 different copyright violation lawsuits were placed against the Company. In one instance, a designer Diane von Fürstenberg filed a law suit against the company on the grounds that they imitated four of her dress designs. Trovata, Gwen Stefani and Anna Sui and a couple of other designers have also take legal actions against the company for copyright violations
MARKETING STRATEGY OF FOREVER 21
The major target of the Forever 21 brand is the youthful generation and their marketing strategies are designed to reach out to these classes of people. They have a very strong social media presence and they mostly utilise the social networking sites such as Facebook and Twitter to reach out to more customers.
EXPANSION PLAN OF FOREVER 21
The Forever 21 brand has continued to expand and plant more branches across the world. In the year 2005, the company spent a whopping $33 million to expand its business and their target was mainly the youth. Part of the spending on that huge sum went into the the purchase of a rival company.
In the year 2010, Forever 21 also moved into India with the intention of bringing their world class services and products to the Indian community and plans are in top gears to move into Pakistan.
WHAT IS THE COST OF FOREVER 21 FRANCHISES?
The cost of Forever 21 Franchise is just the information that you would want to be afforded with at the moment as an entrepreneur. We are sorry to inform you that this not available to anyone, even as the company has not finally initialised the plans to start a Forever 21 Franchise.
DO FOREVER 21 SELL FRANCHISES?
We understand this is the main quest you, as an entrepreneur have about this company. You surely want to know if Forever 21 sells franchises. The answer to that is NO. The Forever 21 brand does not at the moment sell franchise.
The company is not considered as a franchise, in fact, they are currently working on developmental strategies to grow the company and make them a formidable force in the world. Maybe in the nearest future, the Forever 21 brand will sell Franchise.