Beadniks
 Blending imagination, individual creative spirit, and an impressive collection of rare and beautiful beads, Beadniks offers customers a chance to craft exquisite and precious handmade jewelry. Beadniks emerged in 1989 as the result of a long personal journey by founder Sally Roesler that spanned the globe. Since then, Beadniks has become one of the largest bead sellers in the world. Beadniks offers an exceptional array of exotic beads and jewelry collected from around the world: when entering a Beadnik store you might discover silver starfish and shell pendants made by Thai Hill Tribes, Javanese lamp work beads, seed bead jewelry from Nepal, turquoise and red coral bracelets, pearls harvested in Vietnam, or wampum from the beaches of Martha’s Vineyard. More than a premier bead distributor, Beadniks is also a source of inspiration and imagination for the community, offering unique gift ideas, trendy jewelry, and bead classes in addition to the excellent, distinctive selection of quality beads.
Becoming a Beadniks franchisee offers an exciting lifestyle that fuses one’s love of crafting with the success of a proven retail concept. Craft and hobby businesses represent a $20 billion industry that is booming following a recent national crafting movement. Consequently, the timing to enter into a Beadniks franchise could not be better. Franchisees benefit from a powerful support system, exceptional training, national buying power, a proven business model, and access to incredible and unique beads.
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Operating Units |
12/31/2007 |
12/31/2008 |
12/31/2009 |
|---|
| | Franchised | 6 | 8 | 8 |
| | % Change | -- | 33.3% | 0.0% |
| | Company-Owned | 1 | 0 | 0 |
| | % Change | -- | -100.0% | 0.0% |
| | Total | 7 | 8 | 8 |
| | % Change | -- | 14.3% | 0.0% |
| | Franchised as % of Total | 85.71% | 100.00% | 100.00% |
Investment Required
The fee for a Beadniks franchise is $30,000.
Beadniks provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
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Item | Established Low Range | Established High Range |
| | Franchise Fee | $30,000 | $30,000 |
| | Training Expenses | $2,000 | $6,000 |
| | Utility Deposits | $100 | $500 |
| | Leasehold Improvements | $10,000 | $60,000 |
| | Real Estate and Rent | $2,000 | $8,000 |
| | Furniture, Fixtures and Equipment | $25,000 | $49,500 |
| | Décor and Accessories | $2,000 | $8,000 |
| | Signage | $1,200 | $4,500 |
| | POS System | $7,575 | $10,400 |
| | Office Equipment and Supplies | $500 | $1,000 |
| | Insurance | $500 | $2,000 |
| | Legal and Accounting | $500 | $3,000 |
| | Opening Advertising | $5,000 | $5,000 |
| | Initial Inventory | $65,000 | $175,000 |
| | Uniforms | $500 | $1,000 |
| | Licenses and Permits | $250 | $600 |
| | Additional Funds (3 months) | $10,000 | $30,000 |
| | Total Investment | $162,125 | $394,500 |
On-going Expenses
Beadniks franchisees pay royalty fees equal to 6% of gross sales. Other fees payable by the franchisee include a marketing fund contribution equal to up to 2% of gross sales and required local advertising expenditures equal to 2% of gross sales.
What You Get–Training and Support
Franchisees receive considerable training and support from Beadniks upon entering a franchise agreement. Beadniks assists franchisees in site selection and lease negotiation and provides specifications for site improvements and layout designs including a list of approved suppliers for these alterations. Additionally, Beadniks supplies franchisees with a comprehensive start-up package of Beadiks products necessary to successfully establish and operate a franchise business. Franchisees also attend a mandatory initial training program held at the Beadnik headquarters in Virginia Beach, Virginia. The training course incorporates classroom and on-site instruction and covers topics such as basic beading, product design, purchasing, merchandising, inventory, accounting, advertising, customer service, store operations and management.
Once franchisees have established their Beadniks business, Beadniks provides various forms of continuing support. Beadniks administers on-going general guidance concerning operational methods, accounting procedures, and marketing and sales strategies. Beadniks also conducts periodic visits to franchise locations to offer consultation and assistance in all aspects of store operations and management for the benefit of franchisees.
Territory
Beadniks does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2010 FDD. Upon receipt of the 2011 FDDs, we will provide new and updated write-ups that will reflect more current information. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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