Naiem Uddin Siam || Staff Reporter ||
Shwapno, a leading retail chain in Bangladesh, introduced its franchise model in 2017-2018 with just six outlets. Today, this model has become the major growth driver for ACI Logistics Limited, with over 400 of Shwapno’s 500+ outlets operating as franchises. The franchise channel contributes 2-3% net profit on sales to the company, setting a new standard for business model innovation in the global retail industry.
What makes this franchise model unique? Unlike traditional franchise arrangements, where the franchisee runs operations and the franchisor receives royalties or commissions, Shwapno’s management team oversees daily operations, and they also own the stock. The franchise partner’s role is to invest in lease advances, civil works, interior design, and equipment, while gross profits are split between the franchisee and Shwapno, typically in a 40%/60% ratio. The franchisee is responsible for rent, utilities, and maintenance, while Shwapno covers staffing costs, supply chain management, and operational expenses.
This innovative model was spearheaded by Shwapno’s CEO, now Managing Director, Sabbir Hasan Nasir. He explained that the model evolved in response to high financing costs in 2016-17. “I focused on creating a growth model not driven by debt, especially when debt was very expensive,” Nasir said. Through trial and error, Shwapno transitioned from a conventional franchise setup to a model where the company maintained control over working capital and customer satisfaction, while SME investors could benefit from the brand’s long-term potential without extensive industry knowledge.
Looking ahead, Shwapno aims to expand to 2,000-3,000 franchises across Bangladesh in the next 4-5 years, with potential international growth on the horizon.
