STANDARD FRANCHISE
CREATIVE IMAGE
IN
NEW ZEALAND
FRANCHISE OPPORTUNITY
Creative Image
Paints,
has become synonymous with craft painting throughout South Africa through the tireless promotions for retail outlets conducted by Lesley and Ray Hogg.
They have had such a to their easy style of the art of painting on craft
items, that people wanted to learn more and more. Inevitably this sparked off the need for a craft painting studio at a permanent venue. They started in a small way with six students operating around a
breakfast room table. Within two months a new studio had to be built to accommodate twenty students at a time. Ladies who started with the idea of attending once a month soon became engrossed in their
new found skills and started attending weekly and later twice a week.
Lesley expanded her studio to give lessons four days per week then six, plus Saturday morning and afternoon classes. More and more people wanted to learn how to create in Lesley’s free flowing easy style, but were too far away to attend on a regular basis
For these people she found it necessary to run full day classes, and provide lunch. So encouraged by what they learned and seeing the wide scope of what can be achieved, the ladies realized the need for ongoing
creative assistance, moral encouragement and the enjoyment of the
company of classmates. Such is Lesley’s magnificent style that others
want to emulate her!
The need for additional studios became obvious and so the idea of franchising was born
Lesley’s way of teaching shows the most inartistic people how to
achieve fantastic results. The preparation of lessons is meticulous, with the emphasis on style and professional appearance, to take craft
painting far beyond the normal reams of the art. Each lesson has been
tried and tested to be idiot-proof so as to make instruction easy. A full set of instructions and templates are provided for each lesson to make progress easy and help the instructor to develop her own
sample range.
We
are looking to open franchises in New Zealand.
This closed corporation, which was formed in 1991 after two years of growth and with an eye to the future has as it,s only two members Lesley and Ray Hogg. It was started in 1989 when Lesley was unhappy with the products then available. Ray developed and manufactured a much more
suitable product. This also required the design and manufacture of a suitable
nozzle and low density bottle for the application. The range of paints has increased over the years and now has 100 colours in
the range. In the range are plain, pearlesent, flouresents and glitters as well
as glues, plus over 200 other painting related products.
Lesley has also produced a number of design books and video,s over the years
as well as been invited to talk at various womens organisations. Lesley has also been nominated as the
Labone (S.A.B.C.) Women of the year for 2001( South African television ) Creative Image has been featured on national television by the Small Business
Development Corporation. It has also been highlighted in numerous national
magazines.
Creative Image became international in 1999 with studios in Mauritius
and Namibia,
New Zealand is our current project.
The idea is to utilise the franchise to establish a craft painting studio, operating from a home environment with overheads at a minimum. The studio will run ideally
with classes to be made up of housewives in the mornings, and working ladies in the evenings and weekends.
A studio may be run with as many classes per week as the operator wants but we have found that 6/8 classes per week with 10/12 students per class is ideal.
Craft painting classes are not new, but the establishment of professionally run studios
with set lessons having dynamic designs and ideas for everything (clothes, wall hangings,
bags ,trays, cloths, pillow cases, canvas etc ) is completely unique.
If you feel you are artistic you could start a school without help,but the advantages of being part of a dynamic group like Creative Image with its unending supply of designs and ideas, as well as marketing backup is unique in the industry. Combine this with over 400 standard products available to you, it makes for a worthwhile
investment in your future.
- A two year renewable licence. Ongoing franchise fee after two year period is $160.00 per month.
- The use of the name Creative Image Craft Painting Studio.
- Two years lessons provided completely prepared during your training session and your time with Creative Image.
- The right to purchase products at special rates, only available
to franchise holders.
- Free design service for advertising layouts for your promotions.
- Assistance with design and layout of your studio.
- Area demographics for population.
- Services of head office for month end client demo's that you organise in your area, when available.
- Continuous training.
- All materials supplied at competitive prices.
- Stock and 10 light boxes to the value of $2000.00.
- Letterheads business cards and specific advertising material.
- Assistance with marketing and promotions.
- Inclusion in all general and national advertising and promotions.
- Inclusion on the website.
- student promotion via “online club”
The figures shown in appendices 1 and 2 are based on full classes which should be achieved after three to four months. Remember that people will only beat a path to your door if they know where the door is, and the success of the studio is totally dependent on your personality and hard work. The advertising for the studio should be started before attending the training course, so as to have a client base hammering that door down.
Avenues for marketing direction
- The franchise studio will be added to all advertising done in conjunction with the franchiser in woman’s newspapers,craft magazines etc and our regular newsletters.
- Local press smalls adverts - effective and inexpensive.
- Local press editorial-something new in the neighbourhood. (Assistance will be given in preparing text.)
- Local store free notice boards.
- School newsletter insertions.
- Mailing to provided client list, from our data base.
- Month end free demo's.
- Pamphlets and posters at local habby and wool stores.
- Talks to woman’s clubs.(e.g.Rotary Annes, etc.)
- Shopping mall promotions.
- School fetes.
- Flea markets
The business is easy to operate with low overheads and high
profit margins. The basic concept is to create a pool of
students, i.e. Initially sixty students, or six lessons of ten pupils each, This can be made up of thirty students attending twice a week,
or sixty individual students. Each student purchases approximately three paints per week, with a profit margin of $2.00 per paint. Each student purchases either a T-shirt, a bag, a shirt or material to do the lesson on each week, with a profit of approximately $3.00 per item. Each student also purchases miscellaneous habby including additional T-shirts,canvas,beads, bangles ,etc. Profit in this department
is dependent on the different types of stock you carry, but for this exercise we
have set the figure extremely low. The figures below are calculated on a 48 week year allowing for the Christmas holidays. However some studios derive considerable income by remaining open
while the students make Christmas presents.
APPENDIX 1
| |
Monthly |
Yearly |
| 60 Students per month |
$180.00 - $10,800.00 |
$118,800.00 |
| Anticipated sales of |
$800.00 pm |
|
| with a profit of $400.00 |
$400.00 |
$ 4,800.00 |
| |
TOTAL |
$123,600.00 |
This is a full scenario and reflects an approximate income in excessof $10,300.00 per
month, but if your studio only does 50% of this, your income would be approximately
$60,000.00 or $5000.00 per month. Although sixty-five students is your target, our schools
generally operate with numbers ranging from fifty to sixty-five students
dependent on the area. However thirty to thirty-five students is considered enough
to make your studio viable. We have not even taken into account the possibility of
kids classes in the afternoons or weekends. The market is as big as you want it and
how much you wish to work and earn.
APPENDIX 2
| Figures based on a 48 week year |
Yearly |
| 72 students (i.e. 12 students x 6 classes) @ $180.00 |
$142,560.00 |
| 72 students x sales with a profit of $500 per month |
$6,000.00 |
| *sales to students should be in excess of $2000.00pm |
|
| leaving a profit margin of approx. $500.00 |
|
| |
TOTAL |
$148,560.00 |
So as reflected in the above figures, by increasing your student level by two extra per class,
you can increase your income by approximately $20,000.00 a year, and accordingly for every additional student your income increases proportionately. These figures reflect turnover and profit on goods sold. Your individual overheads will reduce these figures but should not exceed $100 per month, which is less than 10% of profits.
APPENDIX 3
LESLEY AND RAY’S ACTUAL CLASSES AT R30 PER LESSON: 1991-1996
in South Africa ( EXCHANGE RATE 5.5 TO 1) |
| Figures based on a 48 week year |
Weekly |
Monthly |
Yearly |
| 16 Students x 6 classes per week |
R2400 |
R9600 |
R115 200 |
| 96 Students x3 paints per week
@ R5 profit |
R1440 |
R5760 |
R69 120 |
| 96 students x miscellaneous sales |
R500 |
R2000 |
R24 000 |
| 96 students x material @ R3 profit |
R288 |
R1152 |
R13 284 |
| All day classes one per month x 8 students @R125 |
|
R1000 |
R12 000 |
| |
TOTAL |
|
|
R234 144.00 |
The franchise fee is $25,000.00 (twenty five thousand ). This amount is payable in full before training starts. Financing available for qualifing applicants.
Training will be an initial 2 weeks plus additional training scheduled during your training. You will be required to attend 4 lessons at your cost to assess your abilities and to ensure that you are fully aware of what you are buying into, and the environment in which you will be operating. More lessons may be required before main training depending
on ability.
If you wish to secure an area, a deposit of $5,000.00 (five thousand)
is required. (Some franchises have secured their area a year before starting)
This is a basic outline for a studio but to take advantage of its potential one needs to maximise the available time and situation. We have shown you how the basic works using numbers as a guide only. The actual performance is
directly related to the amount of effort you want to put in.
As an example we have some studios that are operating with in excess of 100 students and are selling 3 times the amount of stock we listed.
Profit margins will also differ dependent on what stock you sell as some products have a higher profit margin.
This is entirely up to you and the income you want to derive. You could have 5 morning classes and 5 evening classes and a Saturday morn/afternoon class
you may even wish to have afternoon classes or run weekend workshops.
All this is dependent on if you want a full time job or a part time job.
You have a possible 27 x 3 hour session times that are useable.
8/9 classes per week with 12 students will give you -/+100 students redo the math with the figures in the previous examples and you will see that income in excess of $130,00 per year or $10,000 per month are easily achievable
Its up to you how much you earn.
Selling a studio as a ongoing business.
Once a studio gets established and you are working it correctly you have a very marketable business. Over the years we have sold a number of studios as going
concerns and the new operators have gone on to further success. We have had studios sold buy operators for double what they paid for the
franchise after operating for 5 years so in fact getting back everything they paid
for the franchise.
Q. Will I be able to teach?
A. Yes. If you are able to talk to people, we make the lessons so simple, all you have to do is follow the instructions.
Q. Do I have to be artistic?
A. No just the ability to follow the lesson.
Q. Do I need premises?
A. No, start in the playroom or study in your own house, and progress to a double garage and develop from there.
Q. Do I need staff?
A. No, very easy for a single person or couple to run.
Q. Can anyone attend classes?
A. Yes, but is best run with ages from 13 to 65 as children have very short attention spans.
Q. Do you only teach women?
A. No, both women and men attend classes.
Q. How much stock do I need?
A. The greater the variety of stock, the greater the impulse sales, but
approximately $3 000 to
$5 000 is adequate once classes are in full
swing.
Q. How do I select stock?
A We will advise you based on our actual sales.
Q. Where do I get stock from?
A. All items required will be supplied by CREATIVE IMAGE.
Q. How are payments made?
A. All purchases are COD. (This enables you to keep franchise costs down)
Q. Can I develop my own lessons?
A. The basic programme should be used because of its success rate, but add in your own ideas as extra project days.
Q. Do I need samples of finished lessons?
A. Yes
Q. Do I have to do all the lessons on items rather then scraps?
A. Yes, as it is more visually appealing and generates sales.
Q. What guarantee do you have of continuious supply of product and lessons?
A. It is within the interest of the franchise to keep you supplied and motivated as this is where we derive our income from
Q. What guarantee of success do I have?
A. This is totally dependent on yourself and Creative Image cannot take responsibility for your inability to work, the system works as has been proved by the successful operations we have
Q. What happens after the two year period if I do not wish to carry on as a franchise?
A. You must cease to carry the company logo and use of all company material which term shall also include all patterns, lessons and designs provided to you will also not be alowed via restraint of trade to operate a similar operation
within a fifty kilometre radius for 1 year.
GERT & JUDY THERON
CREATIVE IMAGE NEW ZEALAND MASTER FRANCHISE OPERATORS
PHONE 021 042 8466
cipnewz@yahoo.com
www.creativeimage.co.za/newzealand.htm
RAY HOGG
CREATIVE IMAGE INTERNATIONAL
South Africa
+27 11 453 3504
rghogg@mweb.co.za
www.creativeimage.co.za
E/fax 27 086 672 1615
