Flip Flop Shops
Flip Flop Shops offers the hottest brands and latest styles of flip flops and sandals as the first-ever franchise of its kind, providing the consumer with a unique retail experience. Flip Flop Shops encourages an atmosphere and lifestyle of freedom and adventure. Their store philosophy includes keeping up on the latest fashion trends, making up their own, taking care of the environment, and helping out their favorite charities.
The founders bring together over 50 years of franchise experience building some of the world's fastest growing franchise concepts and some of America’s most well-known brands. Franchisees have the opportunity to take part in a booming industry; what used to be footwear only for the beach has now made its way to the season's hottest events and onto the feet of the most coveted celebrities and VIPs. Flip Flop Shops seeks to build a breakthrough brand and a world class franchise system.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
0 |
12 |
32 |
| | % Change | -- |
-- |
166.7% |
| | Company-Owned |
4 |
2 |
2 |
| | % Change | -- |
-50.0% |
0.0% |
| | Total |
4 |
14 |
34 |
| | % Change | -- |
250.0% |
142.9% |
| | Franchised as % of Total |
0.00% |
85.71% |
94.12% |
Investment Required
The fee for a Flip Flop Shop franchise is $45,000.
Flip Flop Shop 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.
| |
Item | Established Low Range | Established High Range |
| | Franchise Fee |
$30,000 |
$30,000 |
| |
Rent (3 Months) |
$15,000 |
$22,500 |
| |
Security Deposit |
$6,000 |
$7,500 |
| |
Leasehold Improvements |
$35,000 |
$80,000 |
| |
Signage |
$5,000 |
$10,000 |
| |
Furniture, Fixtures and Equipment |
$24,000 |
$43,000 |
| |
Expenses While Training |
$3,000 |
$5,000 |
| |
POS and Computer Hardware and Software |
$10,000 |
$11,000 |
| |
Initial Inventory/Supplies |
$25,000 |
$35,000 |
| |
Professional Services |
$8,000 |
$12,000 |
| |
Promotional Expenses |
$2,500 |
$5,000 |
| |
Insurance |
$800 |
$1,500 |
| |
Additional Funds (3 Months) |
$5,000 |
$12,000 |
| |
Total Investment |
$169,300 |
$274,500 |
Ongoing Expenses
Flip Flop Shops franchisees pay royalty fees equal to 5% of gross sales per week, and brand building contributions equal to up to 2% of gross sales. Additional fees include software license and support fees, Muzak music service fees and air scenting system fees.
What You Get—Training and Support
Flip Flop Shops provides a wide variety of comprehensive resources for its franchisees. Initial support includes site selection and in-house design and construction consultation. Franchisees undergo training at the Flip Flop University and are given a branded business plan template, a comprehensive operations manual, a new shop opening plan, inventory turn analysis and are given full in-field support.
Ongoing support includes taking advantage of Flip Flop Shops vendor relations and buying program. Marketing and advertising assistance is provided, including professional visual merchandising and local marketing materials. There is also a local shop marketing toolkit, and national brand building PR efforts.
Territory
Flip Flop Shop grants exclusive territories. The Protected Area is at least a 1 mile radius around the store location.
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 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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