Business Description

World's largest selection of merkins - both natural and synthetic. Over 35 models, 15 color selections. Custom fitting in discrete environment. Also custom dyeing. Guaranteed satisfaction. 15 stores in Far East and Europe prove that concept is ripe for aggressive expansion into the U. S. market. Looking for entrepreneurs with the desire to succeed.

Franchisor Background

Year Established:  1992

Franchising Since:  1995

Operating Units:
Franchised Units:	52	88.1%
Company-Owned Units:	7	11.9%
Total Operating Units:	59	100.0%
Geographic Distribution: U.S.: 42 71.2% In 2 States Canada: 2 3.4% In 1 Canadian Provinces International: 15 25.4% In 0 Foreign Countries   Total: 59 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	2
2. Nevada	1

Registered in Following Registration States: California

Financial Requirements

Investment:
Minimum Net Worth:	$250K
Cash Investment:	$90K
Total Investment:	$150K
Average Total Investment:	$150K
Fees:
Initial Franchise Fee:	$20K
Average Franchise Fee:	$20K
On-Going Royalty:	6%
Average Royalty:	6%
Advertising Fee:	2%

Average Number of Employees: 2 Full-time, 0 Part-time

Space Needs (in square footage): 1,200

Preferred Sites: Free-standing Building, Strip Center, Regional Mall

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	3
General Business Experience:	5
Specific Industry Experience:	4
Formal Education:	2
Psychological Profile:	3
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	15 Year(s)
Term of Renewal Period:	15 Year(s)
Passive Ownership:	Not Allowed
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	Yes
Franchisees Allowed to Expand Within Territory?	No
Support and Training
International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	No
Size of Corporate Staff:	4
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	At Additional Cost
Central Purchasing:	Included in Fees
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	At Additional Cost
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Not Applicable
800 Telephone Hotline:	Included in Fees
Training:
1. Headquarters	3 Weeks
2. On-Site	2 Weeks
Expansion Plans
Projected New Units Over Next 12 months: 10 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: Yes, All Countries	Request Franchisor Info   Submit an online form to receive information from Merkinstock.