Retail Cube Prospectus - RCG Corporation

Athlete’s Foot Marketing Associates
Inc., a group based in Atlanta, Georgia
which operates the largest chain of
franchised athletic footwear stores in the
world. The Athlete’s Foot pays a licence
fee of 1% of gross product sales to the
licensor. The current operating agreements,
which expire in June 2015, give The Athlete’s
Foot exclusive operating rights in Australia
and New Zealand. Further information
concerning these agreements is
provided in Section 10.1.4
of this Prospectus.
The Athlete’s Foot
operates both corporate
and franchised stores.
Of its 104 stores, 13
are corporate owned
and the other 91 are
franchised. A number
of franchisees own
more than one store.
The Athlete’s Foot’s
stores are typically
located in major
metropolitan and
regional shopping
centres, as well as
shopping strips. Most
stores range in size
from approximately
60m 2 to 130m 2 , but
stores are typically
between 75m 2 and
95m 2 Athlete’s Foot Marketing Associates
Inc., a group based in Atlanta, Georgia
which operates the largest chain of
franchised athletic footwear stores in the
world. The Athlete’s Foot pays a licence
fee of 1% of gross product sales to the
licensor. The current operating agreements,
which expire in June 2015, give The Athlete’s
Foot exclusive operating rights in Australia
and New Zealand. Further information
concerning these agreements is
provided in Section 10.1.4
of this Prospectus.
The Athlete’s Foot
operates both corporate
and franchised stores.
Of its 104 stores, 13
are corporate owned
and the other 91 are
franchised. A number
of franchisees own
more than one store.
The Athlete’s Foot’s
stores are typically
located in major
metropolitan and
regional shopping
centres, as well as
shopping strips. Most
stores range in size
from approximately
60m
. The store
fi tout elements are
standard across
the Group, with
the exception of
stores in major CBD
locations, which
have a number of distinctive fi tout elements
designed to appeal to typical CBD consumers.
As at the end of April 2004, The Athlete’s
Foot’s store distribution was as follows:
2 to 130m
stores are typically
between 75m
95m 2 Athlete’s Foot Marketing Associates
Inc., a group based in Atlanta, Georgia
which operates the largest chain of
franchised athletic footwear stores in the
world. The Athlete’s Foot pays a licence
fee of 1% of gross product sales to the
licensor. The current operating agreements,
which expire in June 2015, give The Athlete’s
Foot exclusive operating rights in Australia
and New Zealand. Further information
concerning these agreements is
provided in Section 10.1.4
of this Prospectus.
The Athlete’s Foot
operates both corporate
and franchised stores.
Of its 104 stores, 13
are corporate owned
and the other 91 are
franchised. A number
of franchisees own
more than one store.
The Athlete’s Foot’s
stores are typically
located in major
metropolitan and
regional shopping
centres, as well as
shopping strips. Most
stores range in size
from approximately
60m
stores are typically
between 75m
95m . The store
fi tout elements are
standard across
the Group, with
the exception of
stores in major CBD
locations, which
Location Franchised Corporate Total
NSW
Major Metro
Country/Regional
8 7 15
20 0 20
ACT 4 0 4
page [14]
QLD
Major Metro
Country/Regional
6 0 6
7 0 7
NT 1 0 1
SA
Major Metro
Country/Regional
WA
Major Metro
Country/Regional
VIC
Major Metro
Country/Regional
5 0 5
1 0 1
5 0 5
2 0 2
20 1 21
7 0 7
TAS 2 0 2
New Zealand 3 5 8
ALL STORES 91 13 104
Franchising
The Athlete’s Foot opened its fi rst franchised store
more than twenty years ago, and consequently
has signifi cant experience operating a franchise
network. The Athlete’s Foot franchising model
works on the basis that all interactions between
the franchisor and the franchisees are transparent
and equitable. The Athlete’s Foot does not supply
merchandise for resale to its franchisees – this
is purchased directly from the wholesalers. The
Athlete’s Foot negotiates supplier terms and
arrangements which are made available in an
identical way to all stores, both franchise and
corporate. The Directors believe that this reduces
the likelihood of any potential or perceived confl ict
of interest. All franchisees have access to an
identical range of services, products and pricing.
Similarly, the basis for all fees and charges
levied on the Australian franchisees is identical.
See Section 9.5 for a brief description of how
The Athlete’s Foot franchise system operates.
As a result of its equitable and transparent
franchise model, combined with high levels
of franchise service and engagement, The
Athlete’s Foot enjoys a highly cohesive and
constructive franchise environment that enables
constructive ideas to be generated, shared and
adopted in an effi cient and benefi cial manner.
3.2.4 The Market
Based on published industry data, the Company
estimates that retail sales of athletic footwear
in Australia are worth approximately $650m–