franchise brochure

aqua
franchise brochure

Introduction
Aqua Maritime d.o.o. is a fast growing company specializing in the
design, distribution and retailing of convenient, unique and distinctive
maritime apparel and accessories for tourists, as an alternative in the
gift-shop market. The effectiveness of Aqua’s concept lies in simple
product design carried out by an experienced in-house design team and
in fully branded and eye-catching retail outlets - attractive, conspicuous,
striking and trendy.
Although seasonal, Aqua’s business model generates revenues per m 2
that are several times higher than in other retail apparel businesses.
• Proven concept in the gift shop sector
• Low entry-cost franchise model
• Eye catching and trendy design
• Value for money products
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Company Highlights
• 17 own retail outlets (16 in Croatia and 1 in Italy)
• 28 franchises - 17 domestic (Croatia) and 11 international (Australia,
France, Hungary, Netherlands, Slovenia, South Africa, Spain and
United Kingdom)
• Contract with Havaianas (www.havaianas.com)
for co-branding of flip-flops
• Recognizable brand and design in Croatia
• Headquarters and warehouse located in Zagreb,
Croatia (3,500 m 2 ); sufficient to support the expected
growth of the company in the future
• Large product range
• No.1 gift shop in Croatia
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At present, the company has
5 different product groups
and is constantly developing /
designing new products.
Products are divided into the
following product groups:
* Aqua does not provide
seasonal collections.
For more informations about
our products, please visit
www.aquamaritime.hr
Collections *
Aqua
Basic (Fish & Star)
School & stationery Mini beach & travel
Gadgets
Aqua
Bath
Kids’ shampoo Bath frizzers
Herbal soaps Towels
Aqua
Beach
Beachwear Beach items
Clothes Jewelry
Aqua
Natural
Handmade natural soaps High quality natural sponges
Lavender bags Wooden vases
Baskets
Aqua
Home
Textile Ceramics
Glassware Cutlery
Scented candles
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Co-branding
In 2007, Aqua signed a co-branding contract with the world’s most
renowned flip-flop producer – Havaianas (www.havaianas.com).
Havaianas are present globally and have sold more than 2.5 billion
pairs of flip-flops.
The co-branding contract with Aqua, a precedent for Havaianas, was
an acknowledgement of the company’s concept and design.
At present, Aqua generates about 5% of its sales with this product group.
The company sees great potential in this product group in the future.
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The Franchising Model
Aqua is one of the fastest growing
franchises in South East Europe
After first opening a series of own shops oriented to maritime tourism
on the Croatian coast, the company began to receive requests from
independent owners of gift shops wanting to open franchises. This
provided the basis for the expansion of a franchise network along the
Croatian Adriatic coast. Due to the popularity of these shops with foreign
tourists the company also began to attract interest in international
markets. This led to the opening of franchise stores in a number of
foreign countries – neighboring Slovenia and Hungary, as well as Spain,
South Africa and Australia.
This first phase of franchising growth was relatively unplanned, relying
mostly on expressions of interest. The next phase will be a concentrated
effort to open up markets along the Mediterranean coast – in the seaside
tourist centers of Spain, France, Italy, Greece and Turkey, as well as
Montenegro and Portugal.
No franchise fee, low set-up costs
In order to prove the concept and achieve fast growth and critical mass,
the company decided not to charge a franchise fee, giving franchisees a
low entry cost with a fast ROI period – only around €4,000 is required upfront
for shop refurbishment and conversion into an Aqua branded store
(average refurbishment cost for an average-sized shop of 40 m 2 ).
In addition to the set-up costs, the franchisees commit to an exclusive
supply of goods/products from Aqua. The initial supply of stock for an
average-sized shop amounts to about €40,000.
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The franchise selection criteria
The key selection criterion for a potential franchise shop is location.
The owners/managers personally inspect and approve each franchise
location prior to making a final decision on whether or not to approve the
franchise.
Given the constraints of the tourist season, which usually lasts from April to
September, when most of the gift shops generate 90% of their revenues,
it is vital to be located in a street with the highest density of tourists (i.e.
spots where most gift/souvenir shops are located).
“Branding the Shop”
Upon location approval, Aqua’s interior designers create, position and
brand the complete interior of the shop (wall colors, position of furniture
and various displays).
Complete interior furniture is supplied by Aqua.
In order to have quality control of the entire refurbishment process, the
company sends its own workers to the location to monitor the process,
which usually takes up to 5 days.
Upon completion of the refurbishment, Aqua workers and managers
approve the opening of the store.
With tight control over this process, Aqua assures that the quality of each
individual shop remains on the same level and guarantees the same brand
perception wherever the shop is located.
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Aqua franchise terms
and conditions
The franchise is based on an agreement entered into for mutual benefit
that can be signed in advance or after the first season.
Aqua ‘know-how’
Location and interior of an Aqua shop
An outlet in a prime location is the main condition or the first step to an
Aqua franchise.
This is a guarantee for a successful retail business and is a brand standard.
The location of the shop can be approved from photos of the shop and the
location. The photos should be taken from the inside, outside and should
cover all interiors, exteriors and surroundings. The shop window, entrance,
storage and the atmosphere around the shop should be captured.
The shop size can vary from 25-100 m 2 , and should have at least one
window or open front.
All the readjustments should be done by franchisee in advance under the
supervision of Aqua designers.
An Aqua standard shop should have smooth white walls, a telephone
and Internet connection, hardware and software for operating the retail
and one fitting room. Lighting should consist of movable spotlights
equipped with metal-halogen bulbs of 150W each (number of spotlights
and other lighting fittings according to the Aqua instructions). It is highly
recommended that the shop should have a storage space either in the
same location or elsewhere, but certainly large enough to cover the needs
of a shop for at least few weeks.
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Investments
· Readjustment of the shop (floors, walls, lighting)
· Furniture and displays
· Goods
· Crew (that will come and install the furniture, arrange the goods and
train the personnel how to maintain an Aqua store)
The first entry on the investment list must be calculated by the franchisee,
while all other entries will be estimated according to the size of the shop
and the destination to which items and crew must be dispatched.
Furniture
The cost of Aqua standard furniture is approximately €200 per m 2 .
Shop front signboard and other displays are provided by Aqua. Awnings
can be provided by Aqua or done by the franchisee under Aqua
instructions.
If the shop is in an old city, under any kind of historical protection or if
there are any regulations regarding shop front commercial signs or even
interior design, then all of the works will be conducted in accordance with
the regulations.
Goods
The wholesale value of the goods for the first stocking of the shop of 30-
40 m 2 is approximately €35-40,000. This includes the stock for the first
sales period.
Aqua shopping bags, ribbons and various displays are included in the
cost of the goods.
All hanging tags, catalogues, flyers, blue wall paint, aqua wall letters, etc.
are free of charge.
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Crew
The cost of this assistance is individual and is paid only once to cover the
costs of the arrival and stay of assistants for 4-5 days during the furnishing
process and training of the personnel.
Before the final agreement, a personal meeting in Zagreb is requested, as
this is considered the only way the franchisee can be introduced to the
full Aqua shop system, Aqua collections, and to get instructions regarding
the shop fitting and support. At this meeting we also share all financial
reports and statistics with our potential franchisee.
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Headquarters
AQUA MARITIME d.o.o.
Ventilatorska 5a
HR-10250 Lučko
Zagreb, Croatia
tel. + 385 1 30 91 765
fax. + 385 1 30 91 766
aquamaritime@aquamaritime.hr
www.aquamaritime.hr
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