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Interested in an Adventures In Advertising Franchise? Here’s the Real Cost
Promotional merchandise has become a staple in any business, whether big or small. And tapping this industry is also a great idea. But if you are going to start from zero, it’s going to be extremely challenging. Getting a franchise is a better solution. And if you want to get good support and a great name to back you up, Adventures in Advertising could certainly help you. But first, let’s see if you are eligible to start one by learning the Adventures in Advertising Franchise Cost and more.
Franchise Description
Adventures in Advertising started in 1982 in Seattle by Dan Carlson, where they ran as an independent distributor of logo merchandise. Over the years, they expanded their operations and provided design and consulting services for promotional products. To date, they work with businesses to develop marketing strategies related to merchandise, including pens, mousepads, and shirts, to name a few.
The franchisor is Adventures in Advertising Franchise, LLC. They are proactive in providing support for the marketing and sale of promotional or specialty items.
Franchisee Training
There are two training programs offered by the franchisor. These are the following:
- Fundamentals of the Promotional Products Industry Training
- Principles of Operations and Business Management Training
The first program is intended for those who do not have any experience in the same line of business. You may send a representative to undergo the training, and this should be approved by the franchisor.
The second program is mandated for all franchisees. The attendees should satisfy and meet the requirements before they can start the operations. When a franchisee does not have prior sales experience, a franchisor representative will call them to ask for progress and updates. Likewise, the franchisor may recommend the franchisee or representatives to attend supplemental training. This is done once every two years during the term of the Franchise Agreement.
Territory
Franchisees are allowed to operate in a location they prefer and will not receive an exclusive territory. This means that as a franchisee, you may face competition in your area from other franchisees and outlets which the franchisor owns.
Franchisee Obligations
The franchisee should exert all possible efforts to meet the requirements as set in the Franchise Agreement. However, the franchisee is not mandated to manage or supervise the business, although this is highly recommended. The appointed manager does not need to have an equity interest in the business.
The franchisees are compelled to offer products and services that the franchisor requires. Other products and services not included in the regular offering of the franchisor must be approved first. Otherwise, it cannot be offered by the franchisee.
Term of Agreement
Take note that the Franchise Agreement is perpetual. Both parties, namely the franchisor and the franchisee, can negotiate the promissory’s note term in three to 24 months.
Financial Assistance
The franchisor uses an order processing system where the franchisor provides working capital financing. In this system, the franchisor will send the invoices to the franchisee’s customers, process the payments received, and pay the suppliers.
Under the dual branding program, the franchisor may help franchisees by deferring their payment for the franchise fees and other costs.
Did You Know?
What else do you have to know about the company besides the estimated Adventures In Advertising Franchise Cost?
Here are some of the most interesting facts that could help you decide if this is the business for you.
Recognized By Entrepreneur Magazine and Franchise Business Review
If it is credibility you are after, Adventures in Advertising has been recognized by both Entrepreneur Magazine and Franchise Business Review. That alone speaks about business operations and profitability. With this franchisor, you are in good hands.
Start the Business At Home
If starting a business outside your home isn’t going to work, maybe you are raising a family, or have a limited budget, Adventures in Advertising could be the best option for you. They allow their franchisees to run the operations even at the comforts of their own home.
Web-Based Conferences and Regional Meetings
Times have changed, and our mobility is limited. But that doesn’t mean the learning curve should stop. And this is what Adventures in Advertising is doing. They want their franchisees to be updated with the latest news and best industry practices. That way, they can ensure that their franchisees could earn the maximum potential.
No Geographic Restrictions
Speaking of earnings, the franchisor will not restrict you to offer your products and services in a particular region. Hence, if you can tap businesses away from your area or have connections in other locations, you can get the business. This makes the franchise even more appealing as you can use your network to grow the operations.
Promotional Products is a $19B-Industry
We should never underestimate the industry as it holds a whopping $19B every year. This means you have a massive opportunity to earn. With the generous support and help from the franchisor, you are sure to get a significant portion of the cake.
Adventures in Advertising Franchising Cost
Your Investment
You may find the Adventures In Advertising Franchise Cost below. For less than $40,000, you can already start your own business.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Furniture, Computer Equipment, Stationery and Supplies | $1,200 | $5,000 |
| Training Expenses – Hotel, Airfare, Food, etc. | $1,000 | $5,000 |
| Dual Branding Programs | $0 | $17,500 |
| Miscellaneous Opening Costs | $1,000 | $5,000 |
| Additional Funds – 3 months | $6,000 | $15,000 |
| ESTIMATED TOTAL | $39,200 | $77,500 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Loan Repayments | Varies with amount of loan; approximately $50 to $1,000 per week. |
| Service Fee | 4% to 10% of net billings, with minimum service fee of $3,000 per quarter. |
| Capital Access Charge | Depends on dollar amount outstanding and the franchisor’s interest rate. |
| Marketing Fund Contribution | Amount the franchisor specifies. Not to exceed 1% of net billings, plus all promotional allowances, discounts, payments, and other consideration franchisees receive from suppliers. This excludes prompt payment discounts. |
| Optional Services Acquired from the Franchisor | Varies on the service that the franchisee requests. |
| Customer Adjustments | Varies |
| Fee for Adding Suppliers to Order Processing System | The franchisor’s processing amounting to $50, but could increase if the franchisor’s costs increase. |
| Fees for Delivery and Payment Procedures | $25 for each non-standard procedure. |
| Interest and Late Charges | Highest contract interest rate the law allows or 1.5% per month, whichever is less. |
| Costs for Shipping and Bank Charges, Collection Expenses and Other Expenses | Cost of shipping charges, bank charges like NSF and stop payment fees, costs for collecting past due amounts from customers and other expenses. |
| Audit Expenses Fee | Cost of inspection or audit It is approximately $1,500 to $10,000. |
| Transfer Fee | $5,000 |
| Administrative Fee for Conversion of Customer Payments | $500 per payment plus $50 for each invoice included in that payment. |
| Fee for Additional Training | Currently no charge. |
| Annual Convention Fees | Currently no charge. |
| 6-Month Customer Data Fee | See FDD. |
| 12-Month Customer Data Fee | See FDD. |
| Business Administration Fee | $100 per day. |
| Administrative Fee for Non-Compliance with Termination | The then current per diem fees. It is $500 per day. |
| Indemnification | Varies |
| Costs and Attorneys’ Fees | Varies |
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