PICTURE PERFECT
$40 million in sales for fast and expert picture frame franchise.
ANATOMY OF A START-UP
When Ian Johnson offered to help out a friend back in 1983, he had no idea the result would turn into an international franchise company.
Johnson's friend was an art gallery owner in Newcastle, England, who won a two-week trip to Spain. He wasn't going to take the trip because he couldn't leave his business, so Johnson offered to help by looking after the gallery.
Above the gallery was a small independent frame shop that the gallery use when their customers wanted art framed. So for two weeks, Johnson routinely sent business to the framer, each time asking when the work could be completed, and each time being told, "in 3 weeks."
Then a customer came in and asked for the work to be completed in just 3 days. "No problem," said the framer and met the deadline.
Johnson asked why the framer consistently took 3 weeks for all other jobs. "I could do them all in 2 days, but around here people don't expect it any quicker than 3 weeks."
When Johnson's friend returned, the idea for Fastframe was formulated: a quality custom frame shop that would also provide a quick turnaround. The store was an imme
diate success, and the founders began franchising the concept. It quickly expanded to the United States; the first American Fastframe opened in Thousand Oaks, California, in 1986.They are in just about every home and office across the country: picture frames. And while many of them are mass-produced, the demand for custom frames is strong and growing stronger, creating a tremendous entrepreneurial opportunity.
Of the estimated 23,000 frame shops in the United States, approximately 20,000 are independently owned and operated, offering completion times of up to three weeks, inconsistent quality and little or no marketing.
But savvy consumers, ranging from Generation Xers to Baby Boomers are demanding completion rates more comparable to the speed of our times, along with higher quality and more personalized service. For would-be frame shop owners, the solution could be Fastframe.
According to Fastframe's president and CEO, Brian Harper, "Fastframe brings sophistication and professionalism to a fragmented industry that is populated primarily by independent mom-and-pop operations.
"Our franchisees must complete a rigorous training program to insure the utmost in customer service, quick turnaround and quality product."
Harper stresses that there are two key elements that distinguish a Fastframe franchise from an independent operation. They are the ability to provide consistent, fast service and the company's marketing program.
"Most independents put a little ad in the Yellow Pages, open the doors, turn the lights on and think they've got a business. If those operations are successful, it's by pure chance. Today's customers want instant gratification, but they won't accept sloppy work. We understand that framing is a relationship business. If customers like what you do the first time, they'll come back, and they'll refer their friends."
Harper says an important advantage of being part of a national organization is the recognized mobility of the U.S. population. All local businesses will lose a certain amount of their customers due to a natural attrition when customers leave their service area.
A national chain with a solid, consistent marketing program virtually eliminates that problem, he says, because relocating customers will simply transfer their business to the nearest Fastframe store. And the corporate office assists with address change and database tracking.
Fastframe franchisees can focus on retail, commercial or a combination of the two markets. A store that pursues the business market will find it quite lucrative as companies look to create attractive work environments, plus come up with creative gift items for employees and customers.
"Whether you want to open one store or twenty, we have a recipe that works. If you were to ask me what I would do if I left this job, I would open somewhere between ten and twenty Fastframe franchises."
The Franchise Opportunity
There are currently 203 Fastframe stores open in the U.S. (7 of which are company-owned). There are Fastframe locations operating in Brazil, Australia, Japan and the UK. Fastframe shops serve both the commercial and the consumer markets.
Recent years have put Fastframe on a consistent growth path. Until the mid-1990s, sales remained steady at about $25 million annually; in 1998, they increased to $35 million, then up to $40 million in 1999. Sales are expected to increase at the rate of $5 million or more per year for the foreseeable future.
More than half of the current and anticipated future growth is being generated by expansion efforts of existing franchisees. Currently, stores are being added at about 40 per year; that number is expected to increase to 100 per year in coming years.
Initial start-up costs for a Fastframe franchise are $93,500-$124,000 which includes a $25,000 franchise fee, site selection, store development, initial marketing, inventory, working capital and various other expenditures. Stores can be opened within four months of franchise approval. Franchisees pay a royalty of 7.5% and a 3% marketing fund contribution.
Fastframe's innovative Satellite program allows existing franchisees to expand in their market at a lower level of investment by opening a traditional storefront without a production facility.
Production for the satellite is handled at the franchisee's existing full-service location. Fastframe does not charge a franchise fee for satellite locations, which cost less to open and operate than full-service stores.
Franchisees and their employees complete an intensive training program that includes one week of framing design and techniques, and one-and-a-half weeks of business management.
Fastframe provides ongoing marketing support, including broadcast media and targeted direct mail, along with training and support for local store marketing efforts. Ongoing operations support includes vendor relations; new products, services and programs; research and development; training; equipment; assistance with remodeling, relocating and expanding; technical support and more.
Fastframe franchisees tend to be sophisticated business people with a net worth of at least $150,000. They are individuals aiming to grow a business with one or more Fastframe stores.
For more information, visit their website at: www.fastframe.com or contact the company headquarters at 1200 Lawrence Drive, Suite 300, Newbury Park, California 91320 or call 800-333-3225.
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