Transcript Franchisee Prospectus

Franchisee Prospectus
Table of Contents
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Executive Summary
PC-ER Franchise Mission
Benefits of owning a PC-ER
Company Overview
– History
– What we learned
• Types of Franchises
Available
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Franchise Startup Cost
Estimated Startup Costs
Ongoing Fees
The Walmart Relationship
Corporate Support
Training
Franchise Branding
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Executive Summary
• PC-ER, LLC formed March 1, 2011
– We are a franchise format specializing in computer repair made
simple, affordable, and available for home PC users and small business
users
• Each franchise is an independent business operating within
the guidelines of the PC-ER franchise format
• PC-ER stores will be placed within a local Walmart Super
Center as a retail facility.
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PC-ER Franchise Mission
• Our mission is to set the standard for computer technology
solutions through fast and responsive customer service.
– Service turnarounds of 24 – 48 hours for software upgrades, virus
removal, and repairs requiring fast-moving inventoried parts
– Customers will receive the highest quality, one-on-one personal
computer service rather than online or phone support services
– We break the language barrier by clarifying technical issues for you
– All services provided by certified professional technicians
– Standardized pricing rather than costly per hour rates
– Bulk purchasing therefore providing discounted pricing to our
customers
– Provide a large selection of used inventory on systems and parts
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Benefits of owning a PC-ER
• PC-ER franchise vs. storefront location – what we offer:
– You will have retail space inside Walmart, the worlds largest retailer
– Walmart “endorsed” advertising is priceless. Able to tag on to the “big
store” concept through multi-locations
– Guaranteed daily foot traffic upwards of 3000 people per day
– Monthly utility costs are fixed for the duration of your lease
– Advertising flyers can be hand delivered to walk through customers
– Reduced pricing on inventory through quantity discounts
– A wide arrangement of refurbished computers/laptops
– Server based client service tracking and Quick Books billing integration
– You are not alone – We offer a research team to provide you with the
most current tested solutions available to minimize service hours
– Your own personal web page along with a corporate web site to generate
additional traffic
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Company Overview
• History
– First prototype store was established in the Wapakoneta, OH Walmart
in May 2009, known as PC Doctor on Call. Relocated July 2010
– Second PC Doctor on Call store opened in Lima OH (east side Walmart
Super Center) in Sept. 2010
– Third PC Doctor on Call store opened in Celina, Ohio in Oct. 2010 in
the Walmart Center Store.
– PC-ER, LLC formed March 2011.
– Lima and Celina PC Doctor on Call stores sold to PC-ER, LLC and
established as company-owned stores in March, 2011
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Types of Franchises Available
• Each franchise will be established under a Primary Franchise
Agreement
• Area franchises available
– Allow for multi-store ownership by an individual or entity in a specified
area
– Regional exclusivity
– Right to establish new locations as space becomes available in retail
stores covered by the PC-ER Master Lease Agreement
• Enterprise franchises will be available in select areas
– Stores are located within an established retailer (Walmart, Meijer’s,
Target, etc.) with whom lease agreements have been negotiated
– Currently, enterprise franchises are available within Walmart
Superstores only
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Types of Franchises Available
• Non-enterprise franchises available in areas selected and/or
agreed to by PC-ER, LLC
– They are stand alone stores branded as PC-ER
– PC-ER Franchise Branding and Operations Manuals will be used in
operations of these stores
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Franchise Startup Costs
• Startup costs will vary significantly based on each individual
franchisee and the condition of the space
– Leasehold improvements will vary
• Walmart locations are “white box”, meaning you take them as-is
– Some may require minimal updates, others may require more
– Office equipment and supplies expenditures will be less for someone
coming from an established business (conversion franchisee)
– “Additional funds” are included in startup costs to cover the first
months of operation while establishing the business
– Estimated startup costs for an individual franchise are shown on the
following page
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Estimated Franchisee Startup
Costs
Expense Item
Estimate
When Due
Payment Method
$7,500
Contract Signing
Lump Sum
$1,500 - $2,500
As Incurred
As Agreed
$500 - $1,000
As Incurred
As Agreed
$1,500 - $3,000
As Incurred
As Agreed
$1,200
90 Days
As Agreed
Prepaid Rent & Security Deposit
$4,500 - $5,000
As Incurred
As Agreed
Leasehold Improvements (Paint, wiring, etc.)
$1,500 - $3,000
As Incurred
As Agreed
Varies
As Incurred
As Agreed
Professional Fees (Accountant and Attorney)
$1,000 - $3,000
As Incurred
Lump Sum
Initial Inventory (Hard drives, power supplies,
tools, etc.)
$500 - $1,500
At or After Opening
As Agreed
$300 - $500
At or After Opening
As Agreed
$500
As Incurred
As Agreed
Insurance ($3,000,000 liability Walmart
required)
$1,000 - $1,500
As Incurred
As Agreed
Additional Funds for reserve
$5,000 - $10,000
As Needed
As Agreed
Franchise Fee
Initial Training Expenses
Furniture, Fixtures, Equipment, & Signage
Office Equipment (Work benches, desks, etc.)
Software (Tiger Paw & remote access lic.)
Utility Deposits
Office Supplies (paper, pens, etc.)
Business Licenses, Permits, etc.
Total
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$26,500 - $40,200
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Ongoing Franchise Fees and
Required Expenditures
• The following table is an example of ongoing fees to PC-ER
and required expenditures
– The list is not intended to be all-inclusive
– Normal operating expenses are not included
Item
Estimate
When Due
Payment Method
Franchise Royalty Fee
5% Gross Revenue
10th day each month
As Agreed
Local Advertising
$1,250 for Grand
Opening
One time as incurred
As Agreed
Advertising and promotional fee
Up to 1% of Gross
Revenue or $1,200
annually
10th day each month
As Agreed
Annual Tiger Paw and other software license fees
15% of then-current
initial license fee
On signing of renewal
license agreement
As Agreed
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Walmart Relationship
• All franchise locations will be placed within a local Walmart
Super Center.
– The Master Lease will be held by PC-ER, LLC. for the duration of your
lease.
– Length of the lease will be negotiated by PC-ER, LLC on your behalf.
– Lease terms begin at 24 months and are renewable with a 4% annual
increase.
– Your store must be open within 90 days from date of lease signing.
Failure to comply will result in lease termination and forfeit of your
deposit.
– A three month security deposit is required at lease signing. This
deposit is held by Walmart until lease termination.
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Corporate Support
• Data management system
• Centralized repair part ordering process for new and used
inventory
• Technical support with corporate technicians in problem
solving
• Ongoing Tiger Paw training available for all employees
• Franchise Branding in design, layout and clothing for all stores
• Annual (June) franchisee conference
• Advertising cooperative purchased through our website
(Flyers and handouts used to distribute to walk through
Walmart customers.
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Training
• A variety of training will be provided to new franchisees
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Walmart relationship training
Store operations training
Store startup training
Store information management system training
Accounting systems training
Personnel hiring training (what to look for in staff positions)
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Franchise Branding
• Signage standards that meet Walmart specifications
– Signs available from Walmart Corporate supplier
• Company uniforms required
• Standardized store opening hours based on Walmart
requirements
• Standardized modular store furniture for workstations and
reception area
• Standardized store layout templates customized for each new
store location (sample following)
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Franchise Branding –
Sample Store Layout
Storage
Reception
Spare
Parts
Laptop Stations
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Refurb Computers
PC Stations
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Increase your opportunities to
Make Money and Live Better!
Join the PC-ER Franchise Group today.
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