Frequently Asked Questions
- What exactly does an iSold It franchisee do?
- What will it cost me to open my iSold It franchise store?
- How does a franchisee make money?
- Are there other 'profit centers' in an iSold It store?
- Are there cash registers or money in the store?
- What are the typical hours of operation?
- What are the franchisees primary costs to operating the store?
- Are there any inventory costs?
- Do franchisees get any corporate discounts or special rates?
- What is the royalty fee?
- What type of advertising support can I expect?
- What type of training is provided by iSold It?
- What assistance will I receive in opening my store?
- What help will I continue to receive after my iSold It store opens?
- Where should I locate my iSold It franchise store?
- Does my store get a protected territory?
- Can I buy a larger area and develop multiple stores?
- How much is the Franchise Fee?
- Does iSold It offer discounts on the franchise fee for additional stores?
- Is there a fee for using the iSold It software?
- What type of candidates is iSold It looking for?
- Approximately how long will it take to get my iSold It store open?
- I am ready to proceed. What is the next step?
What exactly does an iSold It franchisee do?
iSold It franchisees are primarily responsible for generating business for their store. There are four primary areas that
you will focus on: (1) items from local residents, (2) coordinating fundraising drives with local charities,
churches and schools, (3) seeking close out and overstock items from local businesses, and (4) collecting and selling
your own inventory of items. In addition, you will be responsible for staffing your store, photographing items, creating
eBay listings and packing & shipping after sales are completed. Many of the other tasks are handled by the iSold It
software program.
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What will it cost me to open my iSold It franchise store?
Your initial investment consists of the franchise fee, "Store-in-a-box", deposits, permits and working capital.
Our "Store-in-a-box", is a turnkey store build-out and set-up solution including millwork, counters, interior graphics,
shelving, flooring, computers, software, computer network equipment, and exterior signs necessary for initial
construction. It also includes a startup inventory of supplies, such as bins, boxes, and packing supplies.
Transportation and installation of counters, interior, graphics, shelving, flooring, computers, and data lines
are bundled in the package price. Grand opening marketing materials are included but will ship separately.
Cost varies based on the physical dimensions of the space lease, local sign codes or landlord requirements to
comply with governmental or shopping center requirements. The package does not include unforeseen, non-standard
development expenses. A breakdown on the estimated initial costs required to open an iSold It store is shown below.
The estimates for construction will vary based on a wide range of store sizes, configurations and regional variations in
construction cost. Please see our Uniform Offering Circular for a more detailed disclosure of the range of costs.
Expense:
Franchise Fee $25,000
"Store-in-a-Box" $75,000 - $85,000
Working Capital $20,000 - $40,000
TOTAL $120,000 - $150,000
License fee discount available on successful multiple store applications.
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How does a franchisee make money?
Franchisees charge a commission to the seller for each item sold. While iSold It has a preferred schedule
(30-35% on the first $500), each franchisee is free to set their own pricing schedule.
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Are there other 'profit centers' in an iSold It store?
Yes. In addition to receiving a commission from the seller (your customer), you will also collect a handling charge that
is paid by the buyer. You also get to keep the difference between Transportation 'rack rates' charged to the buyer and your
actual reduced Transportation corporate rate.
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Are there cash registers or money in the store?
No. Everything is done electronically. There is no cash in the store.
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What are the typical hours of operation?
The hours may vary, depending on your location. However, a general rule of thumb is 10 am to 7 pm Monday
through Saturday and noon to 5 pm on Sunday.
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What are the franchisees primary costs to operating the store?
Your two biggest costs are rent and labour. In addition, there are several miscellaneous costs including
insurance and utilities.
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Are there any inventory costs?
No, your sellers are providing you with the inventory for your stores.
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Do franchisees get any corporate discounts or special rates?
Yes. We have discounted Transportation shipping rates that will continually
get better as each store's volume grows. Because of our size and growth potential, there are many other
discounts realized through our suppliers and vendors.
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What is the royalty fee?
Like most franchisors, iSold It collects a royalty of 4% of your sales (total selling price of an item less taxes and
shipping charges). We do not charge a royalty on the profit you receive from handling fees or on the margin
you receive from your discounted Transportation rates--these are yours to keep 100%. The net effect is a royalty less
than 4%, depending on how aggressive you are with the other fees.
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What type of advertising support can I expect?
iSold It maintains a full line of ready-to-use marketing materials, including formats for flyers, counter cards,
billboards and direct mail pieces. The design of these pieces is paid out of the 2% ad fund paid for by all stores.
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What type of training is provided by iSold It?
You will attend iSold It's two-week training program which includes both classroom and in-store training plus support in your store and email and telephone help from the training and operations team. We will support you every step of the way.
Our comprehensive program will cover step-by-step use of the operations manual and all the areas
important to your success as a franchise owner. This includes providing you with skills to enable you to train your team. After completion of the training program, you will work
closely with our trainers at your location for a smooth, efficient store opening. The cost of this initial training
is included in your franchise fee. However, you will be responsible for your own expenses for transportation,
lodging and meals when you attend our training school.
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What assistance will I receive in opening my store?
Our operations team will guide you along the critical path leading to your store opening
and will assist in the pre-opening period with site selection, store layout and coordination / installation of your
"store-in-a-box". In addition, your regional manager may be present to assist you prior to your scheduled
grand opening and immediately thereafter.
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What help will I continue to receive after my iSold It store opens?
You will receive a complete set of operations manuals that will be of assistance to you in the daily operation
of your business. Your service representative will visit periodically to consult with you regarding the
management of your store and help you with any issues which may be of concern to you.
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Where should I locate my iSold It franchise store?
iSold It stores should be located in highly visibly shopping centre's and parades and retail corridors near
supermarkets with national brands as co-tenants. Ideally the location will be in a high
density residential area.
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Does my store get a protected territory?
Yes. Each franchise agreement specifically defines the protected area where you are allowed to operate your
store without competition from other 'full service' iSold It stores.
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Can I buy a larger area and develop multiple stores?
Yes. You can acquire a larger area that will be set aside exclusively for the development of your own iSold It stores.
However, we encourage you to own them in the same general area.
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How much is the Franchise Fee?
The franchise fee for your first store is $25,000 Cdn.
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Does iSold It offer discounts on the franchise fee for additional stores?
Yes. Additional stores that you open will be reduced depending on the number
you plan to open and the location of them.
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Is there a fee for purchasing the iSold It software?
No. The initial installation of the iSold It software is included with your franchise. However, there is a monthly feedependant on store volume. We have negiotiated a deep discount from a reputable 3rd party software developerwho has developed a custom version of their software for the iSold It network.
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What type of candidates is iSold It looking for?
There is a strong preference for franchise owners that are involved in the direct operation of the store--either
as the on-site manager or as a 'strong' owner with a manager actually running the store on a day-to-day
basis. Ambition, drive and character are important--we can teach you the rest.
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Approximately how long will it take to get my iSold It store open?
It will take as few as 45 days from the time you execute your lease.
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I am ready to proceed. What is the next step?
You need to complete and return the on-line Franchise Application. The link to the application can also be found
on the main page of the "Open A Franchise Store" section. Upon receipt of your application, you will be contacted
by the iSold It franchise department to answer your questions and to discuss next steps.
