Franchise Proposal The Fabric of all things good is woven with Love

Transcription

1 Franchise Proposal 2018 The Fabric of all things good is woven with Love

2 Why Choose a Franchise?.Page 3 Our Story.. Page 4 Our Brand. Page 4 Vision and Mission. Page 5 Franchise Overview Page 6 Products. Page 7 Location.. Page 8 Company Management.. Page 9 Industry & Marketing Analysis... Page Sales Marketing and Strategy. Page SWOT Analysis Page Franchise Structure Page 16 Financials.. Page 17 Franchise Procedure. Page 18 Conclusion Page

3 Why Choose a Franchise? You are buying a proven formula When you buy into a proven franchise concept, you avoid many of the major hurdles new startups face because the franchisor has already worked out the kinks and laid a solid foundation. A good franchisor will have everything systemized and ready for you--a business paint-by-numbers, if you will--from marketing and branding to site selection and approved vendors. Consider what it would take (and how long) to start your own business that earns an immediate income stream. Name recognition is what consumers look for, especially in a recession Consumers generally frequent those businesses with which they are most familiar and comfortable. Having instant access to a recognized brand provides a built-in security blanket, and during a recession consumers are more inclined to go with what they know. It's all about name recognition and consistency. Now more than ever consumers want the safety and comfort of a familiar brand. The chance of success is much higher A franchise is more likely to succeed than an independent startup, and the security of investing in a proven concept is worth its weight in gold. With a franchise, the chances of success are dramatically increased because you have the support of the system. The franchisor has already taken most of the risk. That's what you're really paying for. 19

4 Our Story and Our Brand With over 28 years in the textile and decor industry, knowledge and experience is what has lead Studio Collection to become the industry leader in providing the latest trends in fabrics, bedding and decor for Nurseries and Kids Rooms. We have carefully sourced an extensive range of imported and local nursery and children's fabrics. Studio Collection has partnered with one of the leading international fabric manufacturers, as well as a few selected local fabric suppliers, to bring our South African market exclusive access to the widest range of imported and local Cotton children's and nursery fabrics under one roof. Our in-house workroom is where all the magic happens. With our highly qualified seamstresses, our passion for design, uniqueness and beauty, we have become the market leader in bringing superb quality and stylish bespoke linen and decor products to our clients, both in South Africa and abroad. So when you order your baby's bedding from us, you'll receive a unique and beautiful creation, made with love and pride in South Africa. Our unique bespoke CMT offering provides flexibility and service to new and expectant parents as they design and decorate their baby's nursery. 3

5 Our Vision and Mission We seek to differentiate ourselves from our competition by our personal commitment to our customers, and our unwavering quality of workmanship. We endeavor to offer excellent service to our clients, and strive to keep abreast with the latest fabric and decor trends worldwide. We strive to make our customers' experience informative, efficient and above all surpassing the experience that they expect. We aim to create and maintain a business that is comprehensive and exceptional in its attention to every detail, from our operations to the final product; and to provide all who work with us a friendly, cooperative and rewarding environment, which ensures a happy workplace and personal growth. Our commitment to our clients satisfaction is of utmost importance to us and we value any feedback that will enable us to improve our product offering and our overall service to our clients. 4

6 Franchise Overview Studio Collection Head Office is situated in Durban North, Kwazulu Natal. The Studio Collection Franhchisee will register a new Company, trading as Studio Collection, in the specified area that has been agreed on by head office. The Studio Collection Franchise will be bound by a CPA compliant Franchise Agreement, which outlines the terms and conditions of being a nominated franchisee. The Studio Collection Franchisee will be given access to all relevant supplier information, and will also be provided with all the exclusive licensed ranges. Head office will work closely with the Studio Collection Franchisee, offering all necessary guidelines to build a successful Studio Collection store. 5

7 Products Studio Collection has an in-house workroom responsible for the manufacturing of all of our bedding and soft furnishing products. Studio Collection has access to a large number of suppliers of products that perfectly compliment our bedding themes. We cater for the all ages from new born to past-teen, with the predominant focus on nurseries and kids rooms. We are continuously searching for the latest and best market-leading brands to add to our product offering, and the Studio Collection Franchisee is welcome to bring to the table any new suppliers or products that they feel with compliment the brand. The Studio Collection brand ensures variety and covers the following categories: Full range of Bedding products and soft furnishing (manufactured inhouse) Room Décor Accessories Nappy Bags Curtains and Blinds Travel Systems Toys & Gifts Exclusive fabric range Nursery and Kids Furniture 6

8 Location Studio Collection Head Office has identified several areas within South Africa, and across the borders suitable for Franchise stores. Studio Collection Head Office will consider new areas other than those already ear-marked, but extensive market research must be conducted in order to ensure feasibility. Studio Collection Head Office has identified the type of premises and location that best suits the store concept., and this concept will be replicated in all Franchise stores across the country. Franchisees work closely with Head Office to find the perfect location within the designated area. Studio Collection requires a secure, easily accessible, family friendly space which can range from 45sqm to 90sqm. Studio Collection Head Office can assist with securing the relevant premises and negotiations of the lease with the various agents or land lords. 7

9 Company Management The Studio Collection brand requires an extremely hands on, driven and passionate store owner to maintain the ongoing high standard of customer service, which will ensure maximum profitability. The first Studio Collection showroom was built on a carefully selected and varied product range, plus good service, which is the combination resulting in solid repeat business and valuable client referrals. We at Studio Collection believe that the first impression is the lasting impression, and will ensure a new Franchisee and their staff are well trained on all products, customer service, policies and procedures, to ensure that every customer who walks into a Franchise store will come back again and again. Studio Collection head office will provide ongoing support to the new Franchisee and their team, ensuring ongoing customer service excellence and high profitability. 8

10 Industry and Marketing Analysis Studio Collection has clearly identified the niche market in South Africa which supplies related products for nurseries and kids rooms. With over a million births a year to aspiring parents and our growing online annual turnover, we know for a fact that our market is real and viable. And Franchising the brand will most certainly lead to increased annual turnover, as we have found that the majority of clients prefer to liaise face to face, giving them a comforting peace of mind that they are dealing with people and not just an anonymous online contact. In previous years, our market had limited access to the latest trends and would have settled for what was available. With increased access to the internet and continued growth of mobile phones, teamed with the social media revolution, all markets are now able to identify and follow international trends. Studio Collection has their finger on the pulse ensuring they are constantly fulfilling the needs of this niche market. When evaluating the competition, Studio Collection remains unmatched and has organically secured itself as a market leader. 9

11 Industry and Marketing Analysis Competition other similar businesses Each competitor has no more than 1 store.. Focus on one category - i.e décor or furniture or toys/gifts Local Footprint.. Single Proprietor.. Limited Experience no more than 5 years in the industry... Minimal Marketing.. 90% are driven by a Manager or Sales Staff Studio Collection Studio Collection s vision is to bring stores to the people Covers all categories and hosts variety in each category National/International Footprint Supported by Studio Collection Head Office Over 12 years experience in the industry Maximum Marketing as Head Office handles all national marketing 100% are driven by Owners 10

12 Sales Marketing and Strategy Studio Collection Head Office manages all national marketing and guides each Franchisee to market their store within their local area. With over 5 years experience in the South African Market, Studio Collection has a firm understanding of their target market, its ever changing needs and how to successfully capitalize accordingly. Studio Collection has the experience to formulate an effective marketing strategy across all viable marketing mediums. Studio Collection has various marketing mediums which we use to implement campaigns which can be annual, bi annual or monthly. 11

13 Studio Collection s marketing strategy is to regularly share new concepts/trends across its dedicated media platforms. The campaigns run nationally and filter through all stores with a number of call to actions in place to measure response rates. Studio Collection is very focused on digital marketing and is active across social media platforms. With a growing database of over , a Facebook following of nearly , and with cutting edge campaigns, Studio Collection looks forward to further entrenching the brand in the market place. Studio Collection Head Office develops an annual conceptual marketing plan and uses this as a base for monthly marketing and advertising campaigns. Studio Collection sends information focused newsletters to their database on a monthly basis. All newsletters offer their consumers valuable product information, both across the business and store specific. We ensure our newsletters are relevant, interesting and add value to our consumer base 12

14 SWOT Analysis Strengths Well Established Brand Key stores nationwide Broad spectrum supply chain with solid margin and terms of trade Supportive head office to guide and assist Proven recipe Minimum competition Innovative and progressive product and marketing strategies Brand Loyalty Weaknesses Niche target market Sourcing retail staff that will understand the importance of being a brand ambassador 13

15 Opportunities Growing middle class across all regions (over R60 million is spent each year in this industry) Aspiring market (the next generation of customers are online and social media savvy, ensuring broader market reach than ever before) Increased product portfolio (we are constantly on the search for suppliers whose product perfectly compliment our brand) Expansion of existing store To open additional stores in the Franchisee s designated area Threats Volatile exchange rate could affect margins on imported ranges Growth of e-commerce based businesses with our new e-commerce sister website launching in 2018, this will no longer be a threat. 14

16 Franchise Structure Franchise Fee R R excluding VAT, depending on location and store size. Included in the purchase price: Assistance in sourcing of prime retail space and lease negotiation Shop fitting Design IT Hardware including computer and printer POS Software (SAGE accounting set up and implementation) Interior Signage Exterior Signage Purchased stock to the value of R for displays (holding stock not included) Marketing material including flyers, 500 business cards and social media templates Initial Merchandising, training and full support Excluded from Purchase Price: Implementation of Pre Works i.e. Utilities, Tiling, Painting, Partitioning, Internet/Telephone Connectivity Shop fitting installation (varies from store to store) 15

17 Financials Studio Collection Franchisees work on a 35% - 40% margin SC Head Office connects the Franchisee directly with the supplier to ensure the best possible pricing SC Head Office has a royalty fee of 5% of turnover which is paid monthly for marketing, admin and support Franchisee s overheads vary dependent on location Franchisee s wage bill varies dependent on the number of staff needed which often depends on the level of owner involvement and prescribed trading times of the location Bank charges vary per financial institution however SC Head Office can advise the most cost effective options when setting up merchant services The key to a successful Studio Collection store is a prime location with a good rental, ongoing regional marketing and promotions, and consistent excellent customer service. 16

18 Franchise Procedure Step 1: Complete Application Form and include copy of ID and CV Step 2: If approved by SC Head Office, you will be required to pay 10% deposit to secure your area Step 3: SC Head Office will send you a Disclosure Document Step 4: 14 days from receipt of Disclosure Document, SC Head Office will send you your Franchise Agreement to comply with the Consumer Protection Act Step 5: Signing of your Franchise Agreement with payment of 50% of the full Franchise fee. Step 6: Discussion and Agreement of location and project plan Step 7: Set up of SC Franchise store with payment of final balance owing 2 weeks before store opening. A payment plan is also an option, and can be discussed once the 10% deposit has been paid. 17

19 Conclusion Yvette Barry, founder of Studio Collection, has over 20 years experience in the décor and design industry, specialising in textiles and soft furnishing Yvette started Studio Collection in 2012, based on the demand from parents looking for high quality, affordable nursery and kids room products. Understanding the niche market she had identified, Yvette then set about establishing Studio Collection s online store presence, and in 2013 established the in-house workroom where all of Studio Collection s exclusive bedding products are manufactured. Currently there are 5 Franchise showrooms in KZN, PTA, Rustenburg and 2 in Cape Town, with another 12 ear-marked locations nationwide. Yvette, a mother of 4, and proud Nana, manages the Studio Collection Head Office and workroom. Yvette fully understands the Studio Collection target market, and has designed and sourced the most innovative products in the market, with the focus on exclusivity and quality. Expectant parents and Moms of tots to teens from all over South Africa, are drawn to Studio Collection s innovative products and insightful understanding of the local and international markets. Customers appreciate the product variety at one access point, the education behind each product and the unmatched service. 18

20 Conclusion Based on huge demand, Yvette has started investigating growth strategies and has settled on franchising, purely based on the fact that stores could be owner driven, and that Franchise stores are the key to effective expansion of the engine of the business. Yvette is excited about Studio Collection s growth and its future and has this to say: Through hard work, perseverance and God s grace, Studio Collection has emerged as the market leader in the field of nursery and children s interiors, and our vision to have key Franchise stores across South Africa and abroad, will entrench us even further in this niche market, making us the name that is on every parents lips when they are considering decorating their Little One s space be it the full package or simply that special focal item to zhoozsh up their existing room. Thank you for taking an interest in our brand, and for considering our proposal to join our growing Studio Collection family Yvette 19