What exactly
does an iSold It franchisee do?
iSold It franchisees are primarily responsible for
generating business for their store. There are four primary
areas that you will focus on: (1) generate items to sell from
local residents, (2) coordinating fundraising drives with
local charities, churches and schools, (3) from local
businesses, seek to sell on consignment, close out and
overstock items, and (4) collecting and selling your own
inventory of items. In addition, you will be responsible for
staffing your store, photographing items, creating eBay
listings and packing & shipping after sales are completed.
Many of the other tasks are supported by the iSold It
software program.
TOP
What will it
cost me to open my iSold It franchise store?
Your initial investment consists of the franchise fee,
"Store-in-a-box", deposits, security deposits,
permits and working capital. Our "Store-in-a-box", is a
turnkey store build-out and set-up solution including
carpentry, counters, interior graphics, shelving, flooring,
computers, software, computer network equipment and related equipment, and exterior signs necessary
for initial construction. It also includes a startup
inventory of supplies, such as bins, boxes, and packing
supplies. Transportation and installation of counters,
interior, graphics, shelving, flooring, computers, phone
system, electricity and data lines are bundled in the
package price. Grand opening marketing materials are
included but will ship separately. Cost varies based on the
physical dimensions of the space lease, local sign codes or
landlord requirements to comply with governmental or
shopping centre requirements. The package does not include
unforeseen, non-standard development expenses. You will receive a detailed quote specific to
your site once your lease is signed.
A breakdown on the estimated initial costs
required to open an iSold It store is shown below. The
estimates for construction will vary based on a wide range
of store sizes, configurations and regional variations in
construction cost. Please see our Disclosure Document
for a more detailed disclosure of the range of costs.
|
Expense
(plus GST) |
As Low As |
|
Franchise Fee
Initial Training Fee
|
$100,000
$5,000 |
|
"Store-in-a-Box"
|
$90,000 |
|
Working Capital
(for costs such as rent, rates, wages &
overheads) |
$50,000 |
|
TOTAL |
From $250,000 |
|
License fee is fixed - other
costs may vary depending on location of store. |
TOP
How does a
franchisee make money?
Franchisees charge a commission to the seller for each item
sold. While iSold It has a preferred schedule (30-35% on the
first $500), each franchisee is free to set their own
pricing schedule.
TOP
Are there
other 'profit centres' in an iSold It store?
Yes. In addition to receiving a commission from the seller
(your customer), you will also collect a handling charge
that is paid by the buyer. You also get to keep the
difference between Transportation 'rack rates' charged to
the buyer and your actual reduced Transportation corporate
rate.
TOP
Are there cash
registers or money in the store?
No. Everything is done electronically. There is no cash in
the store.
TOP
What are the
typical hours of operation?
The hours may vary, depending on your location. However, a
general rule of thumb is 10 am to 7 pm Monday through
Saturday and noon to 5 pm on Sunday.
TOP
What are the
franchisees primary costs to operating the store?
Your two biggest costs are rent and labour. In addition,
there are several miscellaneous costs including insurance
and utilities.
TOP
Are there any
inventory costs?
No, your sellers are providing you with the inventory for
your stores.
TOP
Do franchisees
get any corporate discounts or special rates?
Yes. We have negotiated discounted rates for computers that
will significantly reduce costs on your initial opening
order. We also have
discounted Transportation shipping rates that will
continually get better as each store's volume grows. Because
of our size and growth potential, there are many other
discounts realised through our suppliers and vendors.
TOP
What is the
royalty fee?
Like most franchisors, iSold It collects a royalty of 10% of
the gross commission of sales (total selling price of an item less taxes and
shipping charges). We do not charge a royalty on the profit
you receive from handling fees or on the margin you receive
from your discounted Transportation rates--these are yours
to keep 100%. The net effect is a royalty less than 5%,
depending on how aggressive you are with the other fees.
TOP
What type of
advertising support can I expect?
iSold It maintains a full line of ready-to-use marketing
materials, including formats for flyers, counter cards,
billboards and direct mail pieces. The design of these
pieces is paid out of the 3% of gross commission paid for by all
stores.
We have
employed National Marketing and Public Relations firms to
maximise the brand in the Australian marketplace. The
Franchisor will be investing well above the franchisee
contributions in launching iSold It in Australia.
TOP
What type of
training is provided by iSold It?
You will attend iSold It's one-week training program which
includes both classroom and in-store training. Our
comprehensive program will cover step-by-step use of the
operations manual and all the areas important to your
success as a franchise owner. After completion of the
training program, you will work closely with our trainers at
your location for a smooth, efficient store opening. The
cost of this initial training
is included in your franchise fee. However, you will be
responsible for your own expenses for transportation,
lodging and meals when you attend our training school.
TOP
What
assistance will I receive in opening my store?
Our construction manager and operations team will guide you
along the critical path leading to your store opening and
will assist in the pre-opening period with site selection,
store layout and coordination / installation of your
"store-in-a-box". In addition, your regional manager may be
present to assist you prior to your scheduled grand opening
and immediately thereafter.
TOP
What help will
I continue to receive after my iSold It store opens?
You will receive a complete set of operations manuals that
will be of assistance to you in the daily operation of your
business. Your franchise coach will visit
periodically to consult with you regarding the management of
your store and help you with any issues which may be of
concern to you.
TOP
Where should I
locate my iSold It franchise store?
iSold It stores should be located in highly visibly shopping
centre's and parades and retail corridors near supermarkets
with national brands as co-tenants. Ideally the location
will be in a high density residential area.
TOP
Does my store
get a protected territory?
Yes. Each
franchise agreement specifically defines the geographical
area where no other iSold It stores can open.
TOP
Can I buy a
larger area and develop multiple stores?
Yes. You can acquire a larger area that will be set aside
exclusively for the development of your own iSold It stores.
However, we encourage you to own them in the same general
area.
TOP
How much is
the Franchise Fee?
The franchise fee for your first store is $100,000 +GST.
TOP
Does iSold It
offer discounts on the franchise fee for additional stores?
Yes. Additional stores that you open will be reduced
depending on the number you plan to open and the location of
them.
TOP
Is there a fee
for purchasing or using the iSold It software?
The initial installation of
the iSold It software is included with your franchise. There
is a monthly service fee of around $340 for this state of
art software. However the benefits to franchisees in terms
of benefits and labour saving more than compensate. iSold It
have invested millions of dollars in developing this
software and are now exclusively partnered with one of the
world's leading developers to maintain leading edge
services.
TOP
What type of
candidates is iSold It looking for?
There is a strong preference for franchise owners that are
involved in the direct operation of the store--either as the
on-site manager or as a 'strong' owner with a manager
actually running the store on a day-to-day basis. Ambition,
drive and character are important--we can teach you the
rest.
TOP
What is a
Disclosure Document and when do I get one?
A disclosure document
explains the company's franchise system along with details
of the relationship between the franchisee and franchisor.
TOP
Do you collect
a deposit from me before we execute the Franchise Agreement?
No. Most reputable
franchise companies will not ask for a deposit to show 'good
faith interest' in the concept. We encourage you to move at
your own pace in the evaluation process and we let
you decide when is the right time to sign documents and pay
the corresponding franchise fee. At a minimum, you must have
our Disclosure Document in your possession for ten
business days before we can accept any money or signed
agreements from you.
TOP
Approximately
how long will it take to get my iSold It store open?
It will take as few as 30 days from the time you execute
your lease.
 I
am ready to proceed. What is the next step?
You need to complete and return the on-line
Franchise Application.
The link to the application can also be found on the main
page of the "Open
A Franchise Store"
section. Upon receipt of your application, you will be
contacted by the iSold It franchise department to answer
your questions and to discuss next steps.
|
