H&M Franchise Agreement

H&M Franchise Agreement: What You Need to Know

H&M, also known as Hennes & Mauritz, is a well-known fashion brand with stores all over the world. With a strong focus on sustainability and ethical business practices, the company has become a popular choice for fashion-conscious consumers. If you`re interested in starting your own H&M franchise, there are a few things you need to know about the franchise agreement.

What is a Franchise Agreement?

A franchise agreement is a legal contract between a franchisor (the company) and a franchisee (the person or company opening the franchise). It outlines the terms and conditions of the franchise, including the use of the H&M brand, the products that can be sold, and the fees that must be paid.

The H&M Franchise Agreement

To become an H&M franchisee, you must first apply through the company`s website. Once your application has been reviewed and approved, you will be sent a franchise agreement to sign.

The H&M franchise agreement covers a wide range of topics, including the use of the H&M brand, the products that can be sold, the marketing and advertising requirements, and the fees that must be paid. There are also detailed guidelines on store design, inventory management, and customer service.

One of the key features of the H&M franchise agreement is the requirement for sustainability and ethical practices. Franchisees are required to follow H&M`s strict guidelines for sustainability, including using renewable energy sources, reducing waste, and promoting fair labor practices.


As with most franchise agreements, there are fees associated with opening an H&M franchise. These fees cover the cost of using the H&M brand, as well as ongoing support and training from the company.

The initial franchise fee for an H&M store is €30,000, which must be paid upfront. In addition, there is an ongoing royalty fee of 3% of gross sales, which is paid monthly.

Training and Support

H&M provides extensive training and support to its franchisees, including assistance with store design, inventory management, marketing, and customer service. Franchisees also have access to H&M`s global network of suppliers and partners, which can help them to source high-quality products and materials at competitive prices.


Opening an H&M franchise can be a great opportunity for entrepreneurs who are passionate about fashion and sustainability. However, it`s important to understand the terms and conditions of the franchise agreement before signing on the dotted line. By doing your research and seeking advice from experienced franchisees, you can ensure that you`re making an informed decision and setting yourself up for success.