Starscapes home-based business opportunity

NO PLACE LIKE HOME

DESIGNING DOLLARS

$18 million a year in smart and savvy design stores.

DOTI is the only franchised concept of its kind in the design and home furnishings industry. Franchising comprises more than 40 percent of all retail sales in the United States, but only two percent of sales in the home furnishings industry, presenting tremendous growth opportunities for DOTI.

Jim Evanger said DOTI’s first priority is additional growth in metropolitan markets where it already has Design Stores. Other targeted metropolitan areas include Minneapolis, Philadel-phia, Miami, San Francisco and Boston. Longer-term targets include New York City and Seattle.

DESIGNS OF THE INTERIOR AT-A-GLANCE

DOTI Franchising, Inc.
18-3 East Dundee Rd., Suite 208
Barrington, IL 60010
(888) 382-7488
(847) 713-2622
www.doti.com

Market Position:
DOTI (pronounced “dotty”) is the only franchised concept of its kind in the design and home furnishings industry. DOTI Design Stores not only combine traditional interior design services and home furnishings, but also feature retail showrooms. DOTI expects system-wide sales of $10 million to $11 million in 2005, increasing to $17 million to $18 million in 2006.

Franchise Facts:
The estimated initial investment for a DOTI Design Store franchise is $260,000 to $398,000, including a $37,500 franchise fee. Franchisees must have a net worth exceeding $600,000 and liquid assets of at least $125,000. Royalties are six percent of gross sales. Contribution to a national advertising fund is 1-1/2 percent of sales, not to exceed $700 per month.

Training/Support:
DOTI’s comprehensive training program includes five weeks of training prior to store opening, including three weeks at DOTI’s corporate headquarters in Barrington, IL. Initial training covers all aspects of operating a DOTI franchise including operations, public relations, store merchandising, marketing, recruiting, accounting, vendor relationships and advertising. During their grand opening, franchisees receive three weeks of onsite support from a DOTI “coach.” Afterward, each franchisee is assigned an executive coach who provides twice-weekly phone support for several months. Two-day site visits are made on a quarterly basis by DOTI’s field operations staff and franchise owners conduct bi-weekly conference calls.

The estimated initial investment for a DOTI Design Store is $260,000 to $398,000. Experience in the industry is not required. Instead, the owner’s role is to build and manage the business.

Many DOTI franchisees are former high-level managers or executives from the corporate world. DOTI’s management team and franchisees come from a variety of corporations including Ernst & Young, McDonald’s, IBM and JP Morgan Chase. Eleven of its franchisees are couples.

Jim and Michele Evanger were college sweethearts at the University of Wisconsin. After graduating with a degree in interior design, one of Michele’s first jobs was at a small interior design studio called Designs Of The Interior in the Chicago suburb of Barrington, where she began working in 1991.

Michele Evanger bought the business in 1993 and opened two more studios in the Chicago suburbs. With Michele’s success, the Evangers realized the niche DOTI could fill by combining interior design services and home furnishing along with a retail storefront. Jim Evanger left his position as director of global account development with STERIS Corporation to join Michele in 1998 and help position DOTI for franchising.

“Adding the store element gave us a bigger brand presence,” Michele Evanger said. “As we made the decision to start to grow, we needed to enrich our brand. We felt the store element helped us do that.”

Added Jim Evanger: “It also enabled us to recruit better employees and to gain greater customer interest in the community because people actually had a physical building to visit and see the kinds of merchandise we sell.”

DOTI’s typical client is female and between 35 and 60 years old, with an annual household income exceeding $125,000 and a home value that ranks among the top 20 percent in their market. But many have neither the time nor artistic talent to accomplish what DOTI does for its clients.
DOTI Design Stores average between 4,000 to 5,000 square feet in size and are typically found in four types of locations: modern lifestyle centers; storefronts in older, affluent neighborhoods; upscale retail strip centers and stand-alone Design Stores.

The Design Stores house a “studio” for six to eight Design Consultants and the inviting, comfortable showrooms are furnished to reflect what’s popular in that respective community. If something doesn’t fit one’s taste, there’s no concern for a client because of DOTI’s dizzying offering of selections. In fact, 80 percent of DOTI sales take place in the customer’s home.

Jim Evanger said DOTI’s appeal to prospective franchisees comes from three main factors: a) the immense potential of the home furnishings industry; b) the investment return that is generated without need for multiple locations; and c) the upscale nature of the business in regard to both employees and customers.

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