Franchises
     
     
   
     
  Franchise Fees  
     
 
  • The initial fee is from US$75,000 for international franchises
  • A fixed monthly royalty based on 5% of gross sales
  • A fixed monthly fee to cover shared advertising costs to benefit all centres
 
     
  The initial fee and royalties cover the following:  
     
 
  • The right to use the trade names, branding, intellectual property and copyright
  • Exclusive territory rights, determined on the basis of demographics and local trends
  • The full business system, including operations manuals and proprietary computer softwares
  • Initial intensive training, ongoing training, consultation and support
  • Assistance with site selection, lease negotiation and refurbishment
  • Assistance and guidance with organisation, employee recruitment and training
  • Ongoing research and development of new programmes, services and curricula
  • Proprietary products and materials
  
     
  Franchise term  
     
 
  • A minimum of five years, with an option to renew for each further five-year period subject to mutual agreement
  
     
  Franchise investment  
     
 
  • An estimated minimum of US$130,000 would be required to successfully start-up a Kids' Gallery centre in Hong Kong
  • The following example shows a typical investment plan* for a Kids' Gallery centre based on Hong Kong prices (investment costs for centres outside Hong Kong would necessary reflect local market conditions)
  
     
 
   
(Amounts in US$)
  
  Investment in franchise
To franchisor		    
  Initial fee
75,000
  
       
  Investment in centre
To third party suppliers		    
  Premises (3 months rental deposit)
16,000
  
  Refurbishment costs
20,000
  
  Equipment, furniture and materials
10,000
  
  Computers and printers
3,000
  
  Advertising and promotions
2,000
  
  Professional fees
2,000
  
  Insurance
2,000
  
   
________
  
   
130,000
  
 
     
  *The example of investment required above is based on estimates that will vary according to individual circumstances. Kids' Gallery International Ltd does not warrant or guarantee that these would be a franchisee's actual costs.