Franchise Packet Welcome Aboard!
Welcome! Dear Prospective Freedom Boat Club Franchisee, My name is John Giglio, and I would like to thank you for your interest in owning a Freedom Boat Club franchise. As you explore this packet, I think you will see why I am proud to be the owner and CEO of the Freedom Boat Club. At Freedom Boat Club, our concept is simple; we want to bring the fun of the boating lifestyle to people who don t want to deal with the hassles of owning and maintaining a boat. Owning a Freedom Boat Club franchise not only gives you the opportunity to be in charge of your own successful business, but it offers up the possibility to experience a lifestyle most business owners would envy. When you are the owner of a Freedom Boat Club franchise, your entire business is centered around boating and the water. If you enjoy the water, you know just how gratifying that lifestyle can be. The Freedom Boat Club is a proven and well-established business model. Freedom Boat Club is dedicated to your success and provides the resources you need to get you started and profitable quickly. So I invite you to take a moment to review this package and find out for yourself why a Freedom Boat Club franchise is a great and unique opportunity for you. Sincerely, John Giglio CEO Freedom Boat Club, LLC Page 2
Why Freedom Boat Club? Freedom Boat Club has been in business since 1989. We are the largest members-only boat club in the United States, with over 60 locations and over 600 boats. We are also the largest fleet of boats outside of the U.S. Government. Freedom Boat Club invented the members-only boat club concept, and there is almost no competition from other clubs that have followed. Freedom Boat Club provides access to numerous avenues to grow your franchise! We offer boat purchasing via national agreements. Members enjoy reciprocity among clubs, with free boat usage when traveling. We have group insurance programs. We have annual conferences where franchisees can share thoughts and gain insight on how to grow their business. We also have a state of the art Website and Reservation system. Freedom Boat Club stands by our franchisees with support materials and training. We make sure that you have the latest in support materials, training and operations assistance for you to recruit new members for your location. We have staff that can help you with any situation that may arise. Freedom Boat Club provides excellent marketing and advertising to our franchisees. We will be with you from day one to ensure your franchise s success. Through our partnership with a nationally prominent advertising agency, you will have access to radio, television, print and much, much more! You can run your business with minimal employees. When you purchase a Freedom Boat Club franchise, we provide you with marketing materials, a website and reservation system, and operations assistance. Essentially your franchise is a turnkey business, and it is up to you just how large you would like it to grow. Freedom Boat Club has a proven high gross profit margin. At Freedom Boat Club, our business model has been proven effective over the past 23 years and continues to see growth in its success. If you adhere to this effective business model you can enjoy your own personal success. It s Fun! Let s face it, when you have the option to run a business that revolves around greasy burgers or one that encompasses fun and boating, it s fairly obvious that the latter would make for a much more enjoyable work environment and therefore, a more enjoyable lifestyle for a franchise owner. Page 3
FAQ s Q. What is the total investment in a Freedom Boat Club? How does it break down? How much is paid to Freedom Boat Club directly? A. The initial franchise fee to purchase a Freedom Boat Club franchise is $38,000. We require you to have about $10,000 - $30,000 of working capital on hand when you open your store. The equipment, boat inventory, and signage, plus the cost of attending training will run about another $100,000 - $200,000. So the total investment is around $140,000 - $240,000, including working capital. The franchise fee is paid directly to Freedom Boat Club. Q. What do I get for my investment? A. Freedom Boat Club will introduce you to a process for operating a store that is unique in the franchise world. We help you with location selection. We train you in Venice, FL for 3-4 days. We may also provide additional training at your location for 2 days. We support you in a wide variety of ways, including marketing, recruitment of personnel, and procurement of equipment and boat inventory. Q. Why should I buy a Freedom Boat Club franchise? A. We are the largest boat club in the world. In fact, we invented this concept. We are the largest fleet of boats in the United States, outside of the U.S. Government. In our niche (boat club membership) we are the only franchise. We are a fun business. We have wonderful validation with more than a twenty year history of proven success. You will require minimal employees. We offer high margins and reasonable capital investment. We teach you how to present the club and add new members through effective marketing. You will experience minimal receivables with low overhead and operating costs. Our members can secure boats at all franchise and company locations around the country when they travel away from their home area, so as we grow, you grow. This is a major factor in acquiring new members. We acquire insurance for our business on a group basis, which reduces costs considerably. We are boat dealers for several brands, and we pass these savings directly to our franchisees. Q. What else do I pay to Freedom Boat Club once I open my franchise? Page 4
A. You will pay us a monthly royalty of 6% of your sales, (with a minimum of $1000/month, which doesn t kick in until your 7th month of operation.) Furthermore, we may, but do not currently, collect, on behalf of the franchisees, the sum of 1% of your sales toward a national marketing fund. This money will be spent on behalf of the franchisees on various projects and programs to drive business to their franchises when the marketing fund is established. Q. What other expenses do I have to operate a franchise? A. You will incur rental for slips at the marina, employee expenses, boat maintenance, marketing, and miscellaneous, such as the cost of accepting credit cards, and insurance. The amounts will vary from location to location. Q. What are the steps in the process of investigating and opening a Freedom Boat Club Franchise? A. First call with our Franchise Development Director to understand the basics of Freedom Boat Club. Receive, review, and discuss the Franchise Disclosure Document ( FDD ). Contact existing franchisees, known as the validation process. Visit Freedom Boat Club in Venice, FL, so that we mutually can determine whether there is a good fit between you and Freedom Boat Club. Execute franchise agreement. Begin search for location, with assistance from Freedom Boat Club. Execute lease for slips at marina, with oversight by Freedom Boat Club. Attend 3-4 days of training at Freedom Boat Club headquarters. Open franchise; Freedom Boat Club may be there for first 2 days training you and/or your employees. Q. How long will it take me to get open? Will Freedom Boat Club help me find a good location? A. If things go well, you could be open in as little as 30 days, or even less. More typical would be 60 days. We hold your hand every step of the way. Our typical franchise begins with about 4 or more new or new-used boats. Page 5
Q. What do I have to do in order to operate a Freedom Boat Club franchise successfully? A. With Freedom Boat Club, advertising and involvement in community events is of paramount importance. You should be the kind of person who has an outgoing personality and enjoys the boating industry. Successful Freedom Boat Club Franchisees have take-charge personalities and are hands-on managers. Q. What are the hours of operation of a Freedom Boat Club? A. During boatable months, we are open 8am-5pm during the week, and 7am-sunset on weekends. We do not allow nighttime boating. Q. What do members pay to join? A. Depending on the length of the boating season, where the club is located and whether the member lives in the vicinity of the club or not, it costs between $2000 and $8000 to join, and about $160-$350/month thereafter. Q. How much money can I make by owning a Freedom Boat Club? A. We are prohibited by law and common sense from predicting your results. (We do have certain sales figures for most of our operating units in Item 19 of our Franchise Disclosure Document.) You will be invited to speak with as many of our franchisees as you wish to help you determine what results you might obtain. Our franchisees are not barred from answering any questions, and we do not control what they tell you. Q. Any failures or transfers? A. We have been in the business for almost 25 years, and have gone through several ownership changes. We have had people leave the business, and we have had people enter the business. You will find reference to this in our FDD. Q. What is the future for Freedom Boat Club? Where do you want to be in 5 years? A. We want to add about 2 dozen franchises in 2012 in the U.S., and get to over 200 in a few more years. We will continue to be the dominant factor in boat clubs in the United States and abroad when we get to that level. Page 6
Getting Started! yes! I want a franchise. How do I get started? 1 Easy Step: 1. Fill out the attached form and fax, mail or email it to us. We will have an agent of Freedom Boat Club contact you and set up a time to meet with you. Please Note: The personal information you supply will be used only for the purpose of qualifying you to be a franchise owner. This information is held in strictest confidence and is never sold, rented, or shared with any other business or third party without your permission. Name: Date: Date of Birth: Address: Phone: Own q Rent q How Long? E-mail: Citizen: Yes q No q Home Phone: Cell: Best time to call: Best number to call: Marital Status: Spouse Name: Education: q High School Grad q College q Master s q Ph.D. q Other How did you hear about Freedom Boat Club: Current Business or Employment: Job Responsibility (Please Attach Resume, if available): Available Capital to Invest: Page 7
Most Recent Annual Income: $ Have you ever owned your own business? q Yes q No If yes, what type? How long have you been looking for a business? What businesses have you looked at? Area preferred (City) 1st: 2nd: 3rd: What professional affiliations and hobbies do you have? What attracts you to business ownership; and what are you looking for or expecting in owning your own business? What did you like most about your past jobs or businesses? What did you like least about your past jobs or businesses? What do you consider your greatest achievement? On the basis of your past experience your strengths are: Weaknesses are: How do you rate your sales ability or interest? Very weakq Weakq Averageq Strongq Very Strongq Are you interested in multiple units? How many hours can you devote per week? Days Per Week: Would friends or family be involved in your business? If yes, whom? How soon do you want to start your business? PLEASE RETURN THIS BUSINESS PROFILE BY MAIL OR FAX TO: 1100 Tamiami Trail South, Suite B Venice, FL 34285 (941) 451-8756 Fax: (941) 451-8766 jbettley@freedomboatclub.com We look forward to being in contact with you! Page 8
The Company The Boat is Waiting We believe that days do not have to be ordinary and boating should be an escape rather than a nuisance. To us, boating is a way for people to relax, connect with friends and create powerful memories with family. So in 1989 we brought that philosophy to life with Freedom Boat Club, the world s largest membersonly boating club. A simple alternative to boat ownership was created. Today, with Freedom Boat Club, you don t need a lot of time to enjoy boating. Just get to the dock. We ll have a boat waiting for you, fueled up and ready to go. We boast numerous locations from seashores to lakeshores. From one Sarasota, Florida location in 1989, Freedom has grown to over 60 locations throughout the United States. Each provides you with a fleet of boats that come with less stress and a lower price tag than owning a single boat. We clean, maintain, store, and do all the prep work for your enjoyment. There are no hassles like dock fees, insurance or trailers. Instead, you spend your time having fun on the water.
Investment Profile Freedom Boat Club Franchises Vary From Region to Region Each Freedom Boat Club franchise is different, depending on the region of the country you are in. Since Freedom Boat Club is an outdoor activity, that means that the members do not have access to your boats in the northern region during the winter, but in the deep south they will. The boats on say, Stuart, Florida will be in the water 365 days a year as opposed to Bar Harbor, Maine where you will be storing them for half of the year. These are things to consider when choosing the location for your franchise. Training to Keep Your Employees Up-To-Date Freedom Boat Club will introduce you to a process for operating a store that is unique in the franchise world. We help you with location selection, we train you in Venice, FL for 3-4 days and may also provide additional training at your location for two days, we support you in a wide variety of ways, and we help you with marketing, recruitment of personnel, and procurement of equipment and boat inventory. There is always something new at Freedom Boat Club. The marketing portal is always open for you to look at what is new in materials for you to run your business. Electronics are always evolving and we try to keep up with the times, so our systems change. Don t worry... we will make sure you understand the latest in technology before we launch it for your members to use, and as always, we are just a phone call away.
The Franchise Power Boating Never Goes Out of Style Boating is a lifestyle that never goes out of style and with a Freedom Boat Club franchise you will be bringing fun and adventure to members from all walks of life. With the support of a large cast of players, you can be sure that your employees are trained on how to create that experience that your members will love. Not only will you have informative information to share with your members, but you will be providing them with a way to escape the everyday grind and give them an adventure of a lifetime that they can relive over and over again. We Offer What Others Don t Freedom Boat Club has partnered with a nationally recognized Advertising Agency to handle our marketing and media buying. You get access to radio spots, television commercials, print ads, direct mail, trade show materials, eblasts and so much more. We have a marketing portal for you to choose materials that are right for you and your demographics or have them build custom materials for you to use as you build your clientele. We will be with you every step of the way to make sure your franchise has what it needs to succeed, from personal training, to our purchasing power with numerous boat manufacturers. We will help you select the right location for your franchise and make sure you have the real estate you need to be noticed and effective. We want your franchise to succeed as much as you do. Freedom Boat Club is committed to you and you can trust us to be there when you need us. FREE DUES tyle... Live the Lifes Live the Lifes tyle d your first 12 Take a tour an waived! are months dues $ is na, West Denn bass River Mari, cleaning maintenance ited ting without the rience of boa hip provides unlim Enjoy the expe your members nis and trally located, River in West Den or hassles. Cen ber you Cape from Bass the mem of a s As side Bay. access to both ghout on Cape Cod nis throu s Den club East 60 in Sesuit Harbor boats and over ip! ess to over 600 to boat ownersh also enjoy acc le alternative s. The affordab the United State ub join the cl CALL 508.398.3221 is na, east Denn northside Mari maintenance, g without the ss to ience of boatin provides acce Enjoy the exper membership United hassles. Your throughout the cleaning or over 60 clubs ownership! and boat boats to over 600 alternative affordable The. States JOIN The club 170 CALL 888.810.1 Club.com www.freedomboat Without the ha ssles Enjoy the exp erience of bo ating withou hassles. Your t the mainte membership nance, cleani provides acces United States ng or s to over 60 and gives you clubs through a variety of out the different boats to choose from! JOIN THE CL UB CALL 877.55 6.2905 d iverside ban Traveling r 159 entry fee *plus one time ssles! Without the ha From Only * per month es at The Concert Seri e After Five ck in is ted to the Aliv Friday May 11th! Che You are invi Tell t of SUITE. n Center on Markets at Tow pm at the V.I.P. Tent in fron 1 FREE ive rece 7 Boat Club, and e drinks until between 5 and dom Free pric with good for 1/2 them you are gets is that also It nd m. wristba il 10p drink and a oeuvres unt for the price hors d n, and Suite 7pm and 1/2 River, Blackfin music, food and n to Whisky night of fun a you admissio. y bers enjo Come t Club mem entire evening! with the Freedom Boa g out E fun and han R.S.V.P. HER erfives.com www.aliveaft