Adidas, a globally renowned sportswear brand, has firmly established itself in the Indian market, offering premium footwear, apparel, and accessories. It operates through a Franchise-Owned Franchise-Operated (FOFO) model, making it an attractive option for investors. In this model, the franchisee manages all operations while Adidas provides branding, training, supply chain support, and national-level marketing. To become a franchise partner, businesses must be legally registered entities, such as private limited companies, LLPs, or partnerships. They should hold valid licenses, including GST registration, a trade license, and a shop and establishment certificate. Opening an Adidas franchise requires a significant investment, with estimated costs ranging from ₹95 lakhs to ₹1.8 crores, covering franchise fees, interior design, inventory, and working capital.
This guide will give you everything you need to know about starting an Adidas franchise business in 2025.
Adidas and Its Indian Presence
With headquarters in Germany, Adidas entered the Indian market in the mid-1990s. Over the years, it has positioned itself as a premium athletic and lifestyle brand offering footwear, apparel, and accessories. With a deep focus on quality, sustainability, and innovation, Adidas has captured the attention of urban and semi-urban Indian youth. In 2023, Adidas signed exclusive retail expansion partnerships with Indian conglomerates, such as the CK Jaipuria Group, to strengthen its physical retail presence across Tier 2 and Tier 3 cities.
Business Model: Franchise Format of Adidas in India
Adidas operates via the Franchise-Owned Franchise-Operated (FOFO) model in India. This means:
- The franchisee bears the full cost of setting up and running the store.
- Adidas provides the brand name, product supply, marketing support, training, and operational assistance.
- The franchisee retains the store’s profits after royalty or margin adjustments.
This differs from the Company-Owned Company-Operated (COCO) model, where the parent company owns and operates stores entirely.
FOFO is an attractive model for investors as it reduces brand risks and offers clear profit visibility with structured support from the brand.
Legal Requirements for Starting an Adidas Franchise in India
1. Incorporated Business Entity
Adidas typically enters into franchise agreements with:
- Private Limited Company
- One Person Company
- Limited Liability Partnerships (LLPs)
- Registered Partnerships
2. GST Registration
The business must have a valid Goods and Services Tax (GST) number, as it will be invoicing customers and claiming input tax credit.
3. Shops and Establishment License
A mandatory local license obtained from the respective State’s Labour Department, allowing retail operations to operate legally.
4. Trade License
Required from the local Municipal Corporation to conduct commercial activities legally at the store premises.
5. Bank Account in Business Name
A separate current account in the name of the incorporated entity is required for all business transactions.
Investment Requirement for Adidas Franchise
Opening an Adidas franchise is a huge investment. The cost involved:
| Component | Estimated Cost Range |
| Franchise Fee | ₹30 – ₹50 lakhs (one-time) |
| Interior Fit-Out & Setup | ₹30 – ₹50 lakhs |
| Initial Inventory | ₹20 – ₹50 lakhs |
| Security Deposit (rent) | ₹5 – ₹10 lakhs |
| Working Capital (6 months) | ₹10 – ₹20 lakhs |
Space and Location Requirements
- Minimum Area: 1000 to 1500 sq. ft.
- Ideal Locations would be:
- High-street retail zones with dense footfall, especially from upper-middle-class people. For example: Linking Road (Mumbai), South Extension & Connaught Place (Delhi), Brigade Road & Indiranagar (Bangalore), etc.
- Shopping malls with great infrastructure, footfall, and shared advertising. For example: DLF Promenade & Select Citywalk (Delhi NCR), Phoenix MarketCity (Mumbai, Bangalore, Chennai)
- Premium market spaces in metropolitan and Tier-1 cities with developed “shopping-cum-leisure” zones such as CyberHub (Gurugram), Aerocity (Delhi NCR), Galleria Market (Gurugram), etc.
- Newly emerging Tier-2 hubs like Lucknow, Kochi, Bhopal, and Bhubaneswar.
Steps to Apply for an Adidas Franchise in India
Before initiating the application process, ensure you meet Adidas’s franchise requirements:
Step 1: Initial Research
Understand Adidas’s brand philosophy, retail model, customer base, and regional demand. Ensure you’re financially prepared for the capital requirements.
Step 2: Submit Franchise Application
Go to the official Adidas India website and go to the “Franchise Enquiry” section and fill out the application form with accurate details regarding your personal information, financial background, proposed location, and business experience.
Step 3: Review and Discussion
Upon receiving your application, Adidas’s franchise team will assess your eligibility based on financial stability, proposed location, and business background. Review the terms and conditions of the franchise agreement, including investment details, operational guidelines, and support structures.
Step 4: Finalizing the Franchise Agreement
Upon mutual agreement, sign the franchise contract, which will outline the duration, renewal terms, and other legal obligations, and pay the requisite franchise fee, which varies based on store size and location.
Step 6: Training and Store Setup
You will receive extensive training and support, including visual merchandising guidelines, IT system setup, and staff onboarding assistance.
Support Provided by Adidas India
Adidas offers end-to-end support to its franchise partners. This includes:
- Training: Comprehensive programs covering sales, customer handling, brand culture, and stock management.
- Marketing: National-level brand campaigns, regional advertising, seasonal promotions, and digital media support.
- Inventory & Supply: Direct access to Adidas’s latest collections and automated supply chain systems.
- Tech Support: POS systems, sales tracking dashboards, and store performance analytics.
- Operational Advice: Layout planning, store audits, and ongoing business development consultations.
Things to Keep in Mind
- Ensure your business is legally registered as a company or LLP.
- Choose a prime retail location with high footfall.
- Maintain a clean financial and credit history.
- Allocate 1,000–1,500 sq. ft. of commercial space.
- Stay committed to running the store full-time or with trusted management.
- Adhere strictly to Adidas’s branding and store layout standards.
- Employ trained staff with a focus on customer service.
- Keep licenses like GST, trade license, and shop establishment certificate updated.
- Regularly report sales and inventory as per Adidas’s protocols.
- Be open to periodic inspections and brand audits.
- Invest in marketing and local brand awareness efforts.
- Follow Adidas’s seasonal inventory and display guidelines.
- Stay responsive to Adidas HQ communication and directives.
Conclusion
Opening an Adidas franchise in India is more than just a retail venture; it is a partnership with one of the most iconic sportswear brands in the world. The investment might be high, but so is the brand’s equity, demand, and consumer trust. Prospective franchisees must ensure their business is legally structured, maintain clean financial records, and be ready to align with Adidas’s operational standards. Whether you are an established business group or an ambitious entrepreneur with retail experience, investing in Adidas could be your next big success story in India’s growing athleticwear industry.
