Franchise Information
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1 Franchise Information
2 VOUCHER PACKS FRANCHISING LTD LAST REVISED JUNE 2007
3 Welcome to Voucher Packs Welcome to Voucher Packs, a business I established in 2002, after years working in the regional newspapers, print, publishing and new media. I was fortunate to work with an American company, currently the market leader in co-operative direct mail in the US. It was then I spotted the gap in the UK market for an offer based pack that consumers would enjoy receiving with inserts from restaurants, takeaways, beauty salons and much more. Businesses are always looking for ways to increase profitability and there are dozens of different advertising options. However few are so targeted, so focused, so measurable and provide such excellent tangible results as Voucher Packs does. In many cases we deliver better results than anything our customers have ever experienced. I encourage you to read the testimonials. Wood; the person I believe knows more about this type of media than anyone else in the UK. Our aim is to establish the best direct mail business in Europe, delivering a pack that consumers enjoy receiving and advertisers want to be seen in, to every town, village and city. To do this we are building a network of hardworking, well motivated franchisees who are sharing in our success. I believe there is an enormous market potential and if you want to be your own boss we have the product and support network to assist you on finding the freedom that only people who work for themselves experience. We are passionate about our business and hope that you will consider joining us. Andrew Wareing Managing Director, Voucher Packs Franchising Limited You now have the opportunity to share our knowledge and growth. We use the best services available, including fullytrained designers, The Royal Mail and quality printers. Yet our production costs are currently lower than when I began in This is how we can deliver our premium service, including design, print and distribution for around four pence per household! With your effort all of this adds up to a profitable franchise built on reliable service, attention to detail and a passion for customer care. We have a talented team to support and help you headed by Richard 3
4 About Voucher Packs THE CONTEXT Every business wants to reach more customers, but generating an interest and response from today s consumer is a challenge. Every medium is saturated with advertising. Television, radio, the movies, the world wide web, , newspaper, magazines, billboards and the cityscape itself are busily promoting a diversity of products and services to anyone with eyes and ears. Large corporations have the deep pockets it takes to be heard above the din, but small to medium size enterprises struggle to achieve even a modest return on their marketing investment. Television and radio are too costly and suited only to raising brand awareness. Newspapers and magazines work only when the advertisements are large. ed advertisements are frequently blocked, and the web is too segmented for local advertisers. Direct mail remains the most responsive media. According to a recent report by industry experts, almost twothirds of consumer direct mail is opened and nearly three quarters of consumers have responded at some point to an ad. UK businesses spend just under 2 billion annually on direct mail, and no wonder: direct mail encourages an average 600 in annual spending by each and every consumer. Statistics show that for every 1 spent on direct mail in the UK, 14 is generated. Only direct mail can reliably generate both public interest and response for advertisers.* THE CONCEPT Today s consumers ask: What s in it for me? A successful advertisement provides the consumer with a tangible response to that question. Voucher Packs applies this effective advertising strategy to the proven medium of direct mail advertising. Voucher Packs are clear-plasticwrapped packages of vouchers offering consumers attractive offers and promotions by local businesses. These packages are delivered by the Royal Mail every month, and are greatly anticipated by many consumers because they are packed with real value. Local businesses would agree (see page 9): a Voucher Pack campaign is a reliable, cost-effective and high performance tool for reaching more customers. THE COMPANY Voucher Packs Franchising Limited is a division of U-Save Ltd, a Lancashire-based company with offices in Poulton-le-Fylde. U-Save Limited was founded in 2002 by a team of marketing experts that had worked with the American direct mail pioneer and current U.S. industry leader (turning over 20 billion in 2006 alone). The successful American direct mail formula has yet to be fully exploited in the United Kingdom. U-Save Limited launched Voucher Packs as a regional operation, providing a direct mail advertising solution to local businesses. The appeal and efficacy of the service quickly became clear and enquiries began pouring in from across the UK. After successfully trading for four years and turning over almost 400k in , U-Save Limited decided to franchise its operations. By allowing others to replicate its business and share in its success, Voucher Packs will be better able to meet the growing demand, and expand its coverage across the UK. U-Save Limited has proven the concept in its local area and now seeks to bring a much-needed service to businesses across the UK. Demand is growing exponentially as businesses increasingly recognise the value of focused, targeted advertising services. These are exciting times in the advertising world. We hope you will join us. * Sources: The Direct Marketing Association (DMA), Direct Mail Information Service Direct (DMIS) and Postcomm VOUCHER PACKS FRANCHISING LTD LAST REVISED JUNE 2007
5 The opportunity INTRODUCTION Our opportunity is a hands-on franchise business. It is the Franchisee s role to establish their business and deliver a first-rate Voucher Packs service to customers within their territory. MARKET OUTLOOK UK businesses spend over 2 billion on direct mail each year which represents a healthy market for Voucher Packs. For every 1 spent on direct mail, 14 of business is generated. The past ten years were marked by the rise of the internet and , yet during this time direct mail expenditure grew by 118% and overall volume increased by 87%. A medium that can deliver such results will never lose its appeal with advertisers. Voucher Packs market can only grow as competing media continue to disappoint local advertisers who fail to achieve the results they are regularly promised and rightfully expect. But don t take our word for it. Read our testimonials! * Sources: The Direct Marketing Association (DMA), Direct Mail Information Service Direct (DMIS) and Postcomm EARNINGS POTENTIAL While every effort has been made to ensure Enquirers will be provided with income projections and other financial details to enable them to discuss the opportunity in detail with their professional advisors. We strongly recommend that you seek advice, conduct a thorough evaluation of your preferred territory, and draw up a business plan for your chosen location. START-UP COSTS Prospective Franchisees will be required to invest 12,500 plus around 8,850 start-up and working capital provision for one Voucher Packs franchise territory comprising four local trading areas. A complete breakdown of this investment will be supplied to qualified applicants. Details of the Franchise Package will also be supplied. THE IDEAL CANDIDATE While Voucher Packs is a sales-based business, a sales background is not as important as strong people skills. In fact, some of our most successful business generators had never worked in sales before. The key to a successful Voucher Packs business is determination, amiability, good communication skills and enthusiasm. Voucher Packs Franchising Limited is looking for candidates with these attributes. the profitability of the Voucher Packs Franchise, individual earnings are still largely dependent on personal efforts and tenacity. We have provided some basic information within this document, along with an enquiry form. 5
6 The franchise TRAINING Voucher Packs may appear to be a simple business, but its success is predicated on a host of proprietary techniques. We will provide training in all aspects of running a Voucher Packs Franchise. Franchisees will be taught the methods we have honed over the course of a decade, including the marketing, sales and administration of Voucher Packs campaigns. The Voucher Packs Operations Manual, on loan to Franchisees for the duration of their trading licence, outlines our business practices. Following your training at our Head Office in Poulton-le-Fylde, a Franchise Manager will work with you in your location to help you establish a viable business. This will include accompanying you on prearranged qualified sales appointments made for you by your Franchisor, as well as the provision of expert sales coaching. Our skills, methods and procedures, along with your determination, reliability and LOCATION We are seeking Franchisees throughout the United Kingdom. Not all geographical locations are suitable, and it is therefore essential that the chosen area be assessed. We retain the final decision on territory. LEGAL AGREEMENT Voucher Packs Franchisees secure the rights to operate the Voucher Packs service in an exclusive territory. These rights and responsibilities are drawn up in the Franchise Agreement. This legal agreement clearly sets out the roles of both Franchisor and Franchisee. BRANDING The Voucher Packs brand, image and trading style has been developed by the Franchisor. As a Voucher Packs Franchisee you will trade under this brand name. As the network develops, you will benefit from strong national and regional promotional activity and a coherent identity. customer service mentality will be key to your success as a Voucher Packs Franchisee. The Franchise will not deliver immediate wealth. The best Franchisees are those who are prepared to grow their business in their location and provide excellent service levels. In time, the financial structures laid down will allow you to reap the rewards of your hard work and our transferred expertise VOUCHER PACKS FRANCHISING LTD LAST REVISED JUNE 2007
7 Financial summary THE PROJECTIONS The hypothetical financial projections below assume that Franchisees will operate with similar overheads and achieve similar levels of turnover. They are based upon the performance of existing franchise locations and our company-owned operation. Actual turnover THE DISCLAIMER These figures are for the purpose of illustration only, and are not intended as a guarantee. A full description of the assumptions upon which they are based is available from Voucher Packs Franchising Limited, and will be provided during any presentation. will depend upon the effort of each Franchisee and market conditions. PROJECTED TRADING PROFIT ( ) EXAMPLE 1 EXAMPLE 2 EXAMPLE 3 EXAMPLE 4 1. Revenue (net of VAT) 134, , , , Gross Income 71,400 94, , , Overheads 27,672 32,240 96, , OPERATING PROFIT 43,728 61,760 90, ,224 THE EXAMPLES 1. Example 1 assumes a single territory with 16 vouchers per pack. 2. Example 2 assumes a single territory with 20 vouchers per pack. 3. Example 3 assumes the Franchisee operating in two territories with 16 vouchers per pack. 4. Example 4 assumes the Franchisee operating in two territories with 24 vouchers per pack. NOTES 1. Revenue is the annual value of Voucher Packs campaigns sold. 2. Gross Income is the target gross income after deducting fixed costs from the above (estimated at 40% of revenue). 3. Overheads are the costs of running the business. 4. Operating Profit excludes any capital repayments and directors remuneration, and is stated before taxation. 7
8 References BANKERS NatWest 23 Market Place Poulton-le-Fylde Lancashire FY6 7BT T: ACCOUNTANTS Becketts 85 Abingdon Street Blackpool Lancashire FY1 1PP T: FRANCHISE LAWYERS Pannone LLP 123 Deansgate Manchester M3 2BU T: FRANCHISE CONSULTANTS Franchise Development Services - Northern Oakfield House Oakfield Road Altrincham Cheshire WA15 8EW T: VOUCHER PACKS FRANCHISING LTD LAST REVISED JUNE 2007
9 Testimonials Our last mailing to a single area generated 60 new members for a total of 21k business over the year! Voucher Packs is the most effective marketing I have done. My very first mailing generated 168 redemptions! I tried the same promotion in local papers and got 80% less response. I would recommend Voucher Packs to small or large businesses because it gets results. After our last mailing, at least 5 vouchers were redeemed each day for weeks after the mailing! Fantastic just when I think it can t possibly get better, it does! I had 4,700 vouchers redeemed last month, accounting for 7% of my total turnover! Our last mailing generated 37 redemptions, resulting in 25 new members. The mailing paid for itself on the very first day! We have a limited advertising budget so any promotion has to work. Voucher Packs gets great results cost-effectively. I don t waste any more money on marketing I only use Voucher Packs because it works! I would recommend Voucher Packs to any business! One 4-month campaign generated over 3000 redemptions! 9
10 How to proceed WHAT NEXT Naturally, neither party can make any decisions at this early stage. You need further details and professional advice, whilst we need to know more about you. The Franchisee plays a fundamental role in the expansion of the Voucher Packs network. We therefore need to apply a careful selection process. APTITUDES While Voucher Packs Franchising Limited will provide training in all aspects of the operation, you will still need to consider your aptitudes and suitability for this franchise business. We are entrusting our good name to our Franchisees, and are investing our time and energy in their businesses. Naturally, we want to get it right. We have a clear idea of the attributes that make a person wellsuited to our franchise opportunity, and we are prepared to take the trouble to find him or her. Successful Franchisees will have excellent interpersonal skills and enjoy working with people. They will display determination and high energy levels. THE ENQUIRY PROCESS If you are interested in finding out more, here is how to proceed: Begin by completing the preliminary enquiry form. Completion of the form places you under no obligation Applicants who meet our criteria will be invited to Head Office for an exploratory meeting. We will run through the figures with you, show you the systems and discuss possible locations Following the meeting, you will need time to consider the opportunity, go over the figures with your professional advisors, talk to your family, and start to review the market potential in your preferred territory. You may also have further questions to ask us If, after all your consultations, you wish to apply for a Voucher Packs Franchise Licence, you will be required to complete an Intent to Proceed agreement and pay a deposit to secure an available territory At no point will we apply pressure on you to come to a decision. At this stage, the next step is simply to submit a completed preliminary enquiry form to obtain further information. This is a challenging and fast-moving environment, so a prompt and level-headed response to problems is also essential, along with a customer care mentality and strong communication skills. You will also need a full UK driving licence. Does this sound like you? VOUCHER PACKS FRANCHISING LTD LAST REVISED JUNE 2007
11 Preliminary enquiry form I have read your prospectus, and would like further information about the Voucher Packs Franchise. Please contact me to arrange a meeting. Name:. .. Current Income Band <25k 25-50k 50-75k 75k+ Home telephone no:. Daytime or mobile no:. Address:. Do you own, or have you ever owned, a business? Yes No City:. County:... Postcode:... If yes, please provide details:.. Date of birth:.. Current situation:.. House: Owner Tenant Marital status: Married Single Divorced (If applicable) Does your spouse/partner work? How do you propose to fund this investment? Yes No Where in the UK are you interested in operating? Dependents Ages:... I confirm that the information I have provided is to the best of my knowledge true and complete. Signed: Date: Please return the form with your CV to: Alternatively, you can fax the Voucher Packs Franchisee. It will be treated Voucher Packs Franchising Limited documents to: in the strictest confidence under the terms of 19 Sovereign Court, Wyrefields the Data Protection Act and does not place Poulton Industrial Estate & Business Park Poulton Le Fylde Please note: this questionnaire is for general information and will be used initially you under any obligation whatsoever. Further information will be required should a Lancashire FY6 8JX in assessing your suitability to become a mutual interest develop. 11
12 Voucher Packs Franchising Limited 19 Sovereign Court Wyrefields Poulton Industrial Estate & Business Park Poulton Le Fylde Lancashire FY6 8JX T: F: W:
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