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Overseas Consultancy Proposal from
LOLLIPOP'S PLAYLAND
Email to Tim Newman-Morris or Bret Stremski at international@lollipopsplayland.com
LOLLIPOP'S PLAYLANDs are the leading group of children's indoor entertainment centres in Australia and New Zealand, with 14 centres currently open in Australia, 6 in New Zealand and 3 in Indonesia (= 23) and 5 more in development. Since it was started in 1993 there has been regular interest in the concept coming from other countries where a full 'business format' franchise based out of Australia is not practical due to distance, language and/or other reasons. This proposal has therefore been prepared in response to those regular requests that have been received in recent months from diverse markets such as France, China, Switzerland, England, South Africa, India and Singapore.
In August 2008 we opened our first Lollipop's Playland in Jakarta, Indonesia. A second site opened in February 2010 and a third opened in September 2010 as part of our plans to develop up to 10 sites in this country. This is being made possible by Lollipops finding and linking with a quality Master Franchisee with the scale, financial resources and connections to allow us to develop the business in this new market
LOLLIPOPS would like to grow into other markets in this same way so we now offer a Consultancy package to allow interested parties the opportunity to research their market with some insight from us into the key drivers and numbers in the business. This allows the enquiring party to make a better informed assessment of the opportunity in their area
Up until mid 2011 LOLLIPOP'S PLAYLAND has had over 10 million customers, and the franchised sites achieve solid financial returns.
Australian franchisees pay $45,000 upfront and 4% of turnover royalty for the support and guidance we offer. On an investment of $A400-450,000 all franchisees consider that this money is well spent. If you are contemplating entering this market in your country, the fees proposed below for our consultancy service are a relatively low cost (compared to your likely capital investment) to increase the chances of the success of your new venture considerably. The full benefits of the franchise consultancy relationship are detailed below.
LOLLIPOP'S PLAYLAND Background
The Concept in New Zealand and Australia
Located in a large (600-1000 m2) open, high stud building, LOLLIPOP'S PLAYLAND is a 'Pay for Play' playland designed for children 1-11 years. Children between these ages pay to enter, must wear socks, and can stay as long as they like. Children under one and adults enter free in some areas and pay a nominal charge in others. LOLLIPOP'S PLAYLANDs have two main areas of activity - Casual players (with parents) and Birthday Parties. LOLLIPOP'S PLAYLAND is open 7 days per week from 9.30am to 6pm.
LOLLIPOP'S PLAYLAND feature unique and exciting play for children in an indoor, clean, safe and supervised environment. Attractions include: A 150 m2 multi level indoor playground, plastic playballs, a Merry-go-round, a bouncy inflatable, a play believe area, educational computers, an indoor basketball and soccer area, a quiet area with duplo, books, puzzles etc. 4-6 birthday party rooms, and a café with coffee, muffins etc.
All these are located in a colourful decorated area with easy listening adult music playing continuously. Many of these attractions have unique 'Superplay' features and are not found in outside free playgrounds, or fast food restaurant playgrounds. Staff wear bright colourful uniforms and are selected with an emphasis on personality and ability to enjoy and interact with the children customers. Overall, a very enjoyable and professionally presented environment designed to maximise the children's fun and to encourage repeat visits.
The History
The idea grew from Alan & Rose Grant observing children (including their own) who were visiting fast food restaurants for the playground rather than the food. Research in the USA and UK showed a growing market in indoor 'pay for play' and while the first playlands had been opened in areas of either very cold or very hot weather, they are now being established in all locations.
In early 1993 Alan & Rose felt that there was an opportunity to introduce the concept of 'Pay for Play' into New Zealand and Alan's early research included visiting 30+ playlands in the USA and Canada. The decision was made to proceed in May 1993, and the first LOLLIPOP'S PLAYLAND opened in New Plymouth, New Zealand in 650 sq m on the second floor above a new four Cinema multiplex on 10 November 1993. After an initial trial and proving period it was decided to expand LOLLIPOP'S PLAYLAND around New Zealand through franchising. Twelve target areas were identified and the New Zealand Franchise Programme was launched in July 1994.
The first Franchised LOLLIPOP'S PLAYLAND opened in New Zealand in March 1995, the first in Australian in December 1997 and the first site in Indonesia in August 2008. 22 Franchises at present operate throughout New Zealand, Australia and Indonesia, with 5 more sites currently being developed.
'Pay For Play' - The New Opportunity
Why Does It Appeal To People Looking To Buy Or Setup A Business?
'Pay for Play' grew rapidly in the USA in the 1990s with numerous Independents and one major player, Blockbuster Video (through Discovery Zone) having over 250 sites. There are currently over 600 'Pay for Play' operations in the USA. In recent years the USA Industry started to rationalize and the operators with focused marketing, good management and a wide range of play options have survived this and continue to do well.
While in many areas in Australia and New Zealand, there are already small 'pay for play' operations, LOLLIPOP'S PLAYLAND is the proven, experienced, large scale, professional operator who is now offering the market a higher standard of play and child/parent enjoyment. Our ability to stand out from the existing opposition has been confirmed by our success to date in Australia to date.
The leisure and entertainment industries will continue to grow at an above average rate over the next decade (an example being the growth in Multiplex Cinemas over the last 5 years). We believe that children's entertainment will experience continued growth with the trends to both parents working, higher disposable income and more leisure time encouraging more frequent 'family outings'.
This business suits 'hands on' owner operators, more so than investors or Corporates. Once a site is established, it can be easy, fun work, with reasonable hours and a casual atmosphere, if franchisees put in place a team of good mature supervisors to support them. Staff are easy to find and attract. Overall the business is suited to a husband and wife team.
Why Use Lollipop's Consultancy Rather Than 'Going Alone?
1. Our research has been done in the USA, New Zealand and Australia and we have the trading experience (17 years, opening 20+ sites and 9 million children customers) to know which type of site and what equipment combination works best.
2. Actual trading history is available to base your projections on showing % penetration rates of the population of children in the area, $ spends per visitor, average labour rates, operating costs, birthdays per week, etc.
3. Promotional material, including TV advertising, is available, already developed, tried and tested.
4. Operating systems are available to pick up and use from day one such as: Entry control, Opening, closing & maintenance schedules, Staff rostering systems, Food options, sources and margins, Birthday party formulas, So why reinvent the wheel?
5. LOLLIPOP'S PLAYLAND can provide full training for the new operators and his/her staff in an operating PLAYLAND and their own, prior to and during the opening weeks.
6. Source equipment from LOLLIPOP'S PLAYLAND suppliers in Australia, China, and the USA. Independent buying will not be able to match LOLLIPOP'S equipment in quality, uniqueness, delivery time or price.
7. Have access to ongoing product development, through overseas contacts, attending international trade shows in the UK and USA and learning from and sharing with other LOLLIPOP'S PLAYLAND Operators in NZ and Australia. Conferences are held in both Australia and New Zealand every six months.
The Keys To Success In The 'Pay For Play' Market
The eight keys to success in 'Pay for Play' and how LOLLIPOP'S PLAYLAND can help you achieve them.
1. High levels of Repeat Customers generated by:
2. Multi Income streams
3. Facilities
4. Minimised Capital investment and start up costs (capitalising on LOLLIPOP'S PLAYLAND learning and sourcing experience)
5. Cost effective Marketing (using LOLLIPOP'S PLAYLAND methods)
6. Labour cost management through:
7. Lower operating costs through:
8. Ongoing evolution of the concept and the brand through regular market research, and franchisee input at Conferences etc.
Thanks for considering LOLLIPOP'S PLAYLANDs as a concept. We know that it works very well in New Zealand, Indonesia and Australia and we would enjoy assisting you setup something similar in your country.
Lollipop's Franchising Confidential Applicant information form
Click here to download our Confidentiality and Restraint of Trade Agreement
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