Power Ads...home-based advertising franchise
Power Ads is a franchise system with its principal business that of electronically advertising, promoting and branding its customers’ businesses, products and services through the medium of large format LCD TV screens installed at premises from where the advertisers will benefit most.
How does it work?
Head office (the franchisor) will
- identify a viable area, eg. Pietermaritzburg, and proceed to enter into long-term agreements with six prominent businesses to install the equipment.
- advertise for a suitable franchisee, enter into an agreement with the franchisee, granting the franchisee the exclusive right to operate a POWER Ads franchise in the area.
- acquire and install the equipment at the hosts’ sites.
- provide the franchisee with comprehensive training in respect of the operating of the business.
The franchisee will now be able to sell advertising space to advertisers.
Selling the advertising spaces
- Advertising slots last for 15 seconds each and the cycle repeats itself every 20 minutes
- This means 80 slots, minus 5 given to the “HOST” = 75 slots available for sale to advertisers
- Head office will sell the first advertisement on behalf of the franchisee
- All advertising agreements are valid for periods of one year ,six or four months
- Advertisements are sold for R490.00 per month. = R5,880 per annum
- Advertisers can pay the annual advertising cost once or monthly
- Captive and normal audience
- Head office designs all advertisements
- Ads can be change unlimited during advertising period. Cost R100 p/change
- Charge once off (Admin fee) of R250,00 p/ad to advertiser not franchisee
How much money can you make?
- The system allows for 80 advertising slots, 5 of which are allocated to the particular “HOST”.
- 5 advertising slots are therefore available to advertisers.
- Charged at R490.00 each per month,
- This translates to R441,000 per annum.
- Because this franchise is operated from home, overheads are low and a net profit in excess of R300,000 can be made in the first year.
What does a franchise cost?
- A franchise fee of R165 100 (finance can be arranged against a second bond on fixed property).
- A monthly royalty fee of R1 000 per month.
What do I get for my investment?
- 6 systems comprising 32” LCD TVs, computers with XP licenses, wall brackets, surge protectors, electronic timers and remotes installed at “HOSTS”
- Laptop computer, memory stick
- Stationery and signage
- Close corporation
- Ongoing franchisee support
- Access to POWER ADS intellectual property, its brand and the goodwill associated with it.
How safe is my investment?
A franchise agreement regulates your relationship with the franchisor. Accordingly, almost all facets of the business are done by the franchise head office, the exception being the canvassing of, and contracting with advertisers, which is the responsibility of the franchisee.
However, should you, the franchisee, find yourself unable to sell advertising slots, an HCU (HELP Care Unit) exists at head office. This means that a head office sales representative will sell advertisements on your behalf, at a commission of R900 each.
To find out more about this exciting franchise opportunity, please complete the request further information facility.
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