Power Ads is an advertising franchise that specialises in electronic advertising. Products and services are promoted via large LCD TV screens.
What does a franchise cost?
- The purchase price of the franchise is R195 000. (Finance can be arranged against a second bond on fixed property).
- (Finance can be arranged against a second bond on fixed property). 50% deposit is payable within 2 days after signing the agreement.
- The rest of the purchase price is payable before the installation of the Computers and LED TV Screens or as arranged with Franchisor. (Instalments/Once-off before installation)
- A monthly royalty fee of R1 100 per month is applicable.
How much money can you make?
- The system allows for 80 advertising slots, 5 of which are allocated to the particular “HOST”.
- 75 advertising slots are therefore available to advertisers.
- Charged at R590.00 each per month,
- This translates to R531 000 per annum.
- Because this franchise is operated from home, overheads are low and a net profit in excess of R352 700 can be made in the first year.
What do you get for the investment?
- 6 systems comprising of 32” LCD TVs, computers with the necessary programs, wall brackets, surge protectors, electronic timers and remotes installed at the “HOSTS”
- Laptop computer, memory stick.
- On-going franchisee support.
- Access to POWER ADS intellectual property, its brand and the goodwill associated with it.
- 1 Extra System (1 Computer & 1 TV Screen for backup)
How safe is my investment?
A franchise agreement regulates your relationship with the franchisor. Accordingly, almost all facets of the business are done by the franchise head office, the exception being the canvassing of, and contracting with advertisers, which is the responsibility of the franchisee.
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.
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