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 What exactly does an The Consignment Jeweler franchisee do? The Consignment Jeweler franchisees are primarily responsible for generating business for their store. There are four primary areas that you will focus on: (1) collecting items from local residents, (2) coordinating fundraising drives with local charities, churches and schools, (3) seeking close out and overstock items from local businesses, and (4) collecting and selling your own inventory of items. In addition, you will be responsible for staffing your store, photographing items, creating eBay listings and packing & shipping after sales are completed. Many of the other tasks are handled by the The Consignment Jeweler software program. What will it cost me to open my The Consignment Jeweler franchise store? Your initial investment consists of the franchise fee, "Store-in-a-box", deposits, permits and working capital. Our "Store-in-a-box", is a turnkey store build-out and set-up solution including millwork, counters, interior graphics, shelving, flooring, computers, software, computer network equipment, security cameras and related equipment, and exterior signs necessary for initial construction. It also includes a startup inventory of supplies, such as bins, boxes, and packing supplies. Freight and installation of counters, interior, graphics, shelving, flooring, computers, phone system, electricity and data lines are bundled in the package price. Grand opening marketing materials are included but will ship separately. Cost varies based on the physical dimensions of the space lease, local sign codes or landlord requirements to comply with governmental or shopping center requirements. The package does not include unforeseen, non-standard development expenses. A breakdown on the estimated initial costs required to open an The Consignment Jeweler store is shown below. The estimates for construction will vary based on a wide range of store sizes, configurations and regional variations in construction cost. Please see our Uniform Offering Circular for a more detailed disclosure of the range of costs.
How does a franchisee make money? Franchisees charge a commission to the seller for each item sold. While The Consignment Jeweler has a preferred schedule (30% on the first $500), each franchisee is free to set their own pricing schedule. Are there other 'profit centers' in an The Consignment Jeweler store? Yes. In addition to receiving a commission from the seller (your customer), you will also collect a handling charge that is paid by the buyer. You also get to keep the difference between FedEx 'rack rates' charged to the buyer and your actual reduced FedEx corporate rate. Are there cash registers or money in the store? No. Everything is done electronically. There is no cash in the store. What are the typical hours of operation? The hours may vary, depending on your location. However, a general rule of thumb is 10 am to 7 pm Monday through Saturday and noon to 6 pm on Sunday. What are the franchisees primary costs to operating the store? Your two biggest costs are rent and labor. In addition, there are several miscellaneous costs including insurance and utilities. Are there any inventory costs? Your sellers are providing you with the inventory for your stores. Do franchisees get any corporate discounts or special rates? Yes. We have negotiated discounted rates for HP computers that will significantly reduce costs on your initial opening order (if you purchase your computers). We also have discounted FedEx shipping rates that will continually get better as each store's volume grows. Because of our size and growth potential, there are many other discounts realized through our suppliers and vendors. What is the royalty fee? Like most franchisors, The Consignment Jeweler collects a royalty of 4% of your sales (total selling price of an item less taxes and shipping charges). We do not charge a royalty on the profit you receive from handling fees or on the margin you receive from your discounted FedEx rates--these are yours to keep 100%. The net effect is a royalty less than 4%, depending on how aggressive you are with the other fees. What type of advertising support can I expect? The Consignment Jeweler maintains a full line of ready-to-use marketing materials, including formats for flyers, counter cards, billboards and direct mail pieces. The design of these pieces is paid out of the 2% ad fund paid for by all stores. In addition, The Consignment Jeweler has been funding a national advertising program that includes Sunday coupons, radio, TV and direct mail postcards. What type of training is provided by The Consignment Jeweler? You will attend The Consignment Jeweler's one-week training program which includes both classroom and in-store training. Our comprehensive program will cover step-by-step use of the operations manual and all the areas important to your success as a franchise owner. After completion of the training program, you will work closely with our trainers at your location for a smooth, efficient store opening. The cost of this initial training is included in your franchise fee. However, you will be responsible for your own expenses for transportation, lodging and meals when you attend our training school. Where should I locate my The Consignment Jeweler franchise store? The Consignment Jeweler stores should be located in highly visibly shopping centers, strip centers and retail corridors anchored by supermarkets and drug stores, with national brands as co-tenants. Ideally the location will be in a high density residential area. Does my store get a protected territory? Yes. Each franchise agreement specifically defines the protected area where you are allowed to operate your store without competition from other 'full service' The Consignment Jeweler stores. Can I buy a larger area and develop multiple stores? Yes. You can acquire a larger area that will be set aside exclusively for the development of your own The Consignment Jeweler stores. You can own both satellite stores that feed a full-service store and can also own additional full-service stores, however, we encourage you to own them in the same general area. How much is the Franchise Fee? The franchise fee for your first store is $22,000. Does The Consignment Jeweler offer discounts on the franchise fee for additional stores? Yes. Additional stores that you open are at the reduced $15,000 fee. Is
there a fee for purchasing the The Consignment Jeweler software? No. The initial installation of the The Consignment Jeweler software is included with your franchise. There is a monthly charge for using the software. What type of candidates is The Consignment Jeweler looking for? There is a strong preference for franchise owners that are involved in the direct operation of the store--either as the on-site manager or as a 'strong' owner with a manager actually running the store on a day-to-day basis. Ambition, drive and character are important--we can teach you the rest. What is a Uniform Franchise Offering Circular (UFOC) and when do I get one? A Uniform Franchise Offering Circular (UFOC) is a disclosure document that explains the company's franchise system along with details of the relationship between the franchisee and franchisor. Also included are audited financial statements, and a copy of the Franchise Agreement. Many states require that franchise companies register this document on an annual basis. You will be given a copy of The Consignment Jeweler's UFOC at our first face-to-face meeting. Do you collect a deposit from me before we execute the Franchise Agreement? No. Most reputable franchise companies will not ask for a deposit to show 'good faith interest' in the concept. We encourage you to move at your own pace in the evaluation process and we let you decide when is the right time to sign documents and pay the corresponding franchise fee. At a minimum, you must have our UFOC in your possession for ten business days before we can accept any money or signed agreements from you. Any franchisor that takes a payment from you before you have been properly disclosed with a UFOC may be in violation of franchise regulations. Approximately how long will it take to get my The Consignment Jeweler store open? It will take as few as 30 days from the time you execute your lease. I am ready to proceed. What is the next step? You need to submit the online Franchise Information Request. Upon receipt by The Consignment Jeweler, we will get in touch with you. Alternately, you can call us at (214) 443 8181 if you would like to move faster. |
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