What is Power Ads?
Power Ads is a franchise system with its principal business being electronic advertising, promoting and branding its customers’ businesses, products and services through the medium of large LCD TV screens. These screens are installed at premises where the advertisers will benefit most.
How does it work?
Head office (the franchisor) will:
- identify a viable area, eg. Pietermaritzburg, and proceed to enter into a long-term agreement with six prominent businesses to install the equipment.
- enter into an agreement with the franchisee, granting the franchisee the exclusive right to operate a POWER Ads franchise in the area.
- acquire and install the equipment at the host’s sites.
- provide the franchisee with comprehensive training in respect of the operating of the business.
The franchisee will now be able to sell advertising space to advertisers.
Selling the advertising spaces
- Advertising slots last for 15 seconds each and the cycle repeats itself every 20 minutes.
- This means 80 slots, minus 5 given to the “HOST” = 75 slots available for sale to advertisers.
- Head office will provide training and the franchisee will receive a training manual
- All advertising agreements are valid for a period of one year, six or four months.
- Advertisements are sold for R590.00 per month. = R7 080.00 per annum.
- Advertisers can pay the annual advertising cost once-off or monthly.
- The head office (the franchisor) shall provide the graphic design required for each advertisement at an initial fee (R250.00 Once-off administration fee) per new advertisement on registration, from information furnished by Franchisee and shall undertake to update each advertisement on a monthly basis where required. The franchisor will inform the Franchisee of any price increases. The franchisee will receive a monthly invoice from Head Office. Advertising Fees are payable by the 7th of each month.
- Ads can be changed once a month without any extra costs. If the advertiser wants to change the advert more than once a month, a graphic design fee of R100.00 is then payable.