Background

Fantasy Kids was started in June 2003 to fulfill a need in the market for mothers who were busy and the thought of looking after many children at a party was exhausting. Fantasy Kids was established to meet the public's growing demand for high quality, unique home based children's birthday parties. Today Fantasy Kids is a well known and popular specialty children's party service. We are an economical and exciting alternative; we will plan and execute your children's special occasion. We fill a gap in the market which is already saturated by clowns, magicians, jumping castles and Jimmy Jungle-type establishments.

Fantasy Kids is a simple concept based on a proven business model, and specializes in the planning and setting up of themed children's parties, taking care of all aspects for discerning parents who require a one-stop party service. Our core business entails supervising and playing theme and age appropriate games with the children during a birthday party. However, we can also deliver, to our clients' homes or party venues, and set up themed décor, kiddie chairs and tables, tablecloths, chair covers and banners, along with any other party goodies our clients require, such as Themed Party Packs, Cakes, Helium Balloons, Piñatas, as well as Themed Party Accessories like cups, plates, serviettes, hats, etc.

Proposal

There are many companies out there offering a kiddies party décor business only. But, once the party planner leaves, mom is left to her own devices to entertain the children, whilst at the same time trying to keep the parents happy. We are proud to be the only company to offer a full service party business – from decorating and catering to entertaining children at a party, and not just the usual face painters and jumping castles. We actively engage the children in traditional games.

After numerous requests from moms in other parts of the country, we have decided to offer carefully screened go-getters the opportunity to own their own business. The idea behind this proposed agreement is to structure a mutually beneficial arrangement for the expansion of Fantasy Kids into other cities.

The new franchisee will quickly discover they are not alone in starting their business. Behind them is an organization with years of experience and an exemplary reputation. The success of each franchisee is critically important to the entire organization. Each franchisee is an integral part of our operation and team. We are committed to building strong Franchisor-Franchisee relationships. Fantasy Kids is a winning concept that will allow you to be in business for your self but not by yourself.

We are not offering a franchise in the strictest sense because that involves getting accountants and lawyers involved. We want to make things as simple as possible, yet fair for both parties.

We will offer geographic areas which will be exclusive. For logistical reasons, the areas cannot be too big, as you have to get the equipment, etc to your Party Organisers. The furthest you should travel for a party is 1 hour.

Franchisees will enjoy constant support from the Fantasy Kids Head Office, starting with an in-depth training course. The Fantasy Kids Website will be managed and maintained, ensuring that it is registered with all the search engines, is linked to many other related sites and has an impressive hit count. Marketing will be taken care of in the form of web-based adverts placed on a number of popular Mommy and Family orientated websites. A regular Newsletter will be sent to each franchisee.

Franchisees will also benefit from negotiated discounts from national Party Accessories Shops.

A Fantasy Kids Franchise will benefit anyone who enjoys children, is self-motivated, would like to work flexible hours from home, and who is a creative team-player that aspires to own their own profitable business.

Qualifications

We strongly believe the success of Fantasy Kids is based on our thorough franchisee selection process, our continuous education, ongoing support programs and training. In choosing franchisees, preference will be given to applicants who:

• Appreciate the benefits of working on a team and within a proven operation
• Demonstrate good interpersonal and communication skills
• Are familiar with and involved in the community where the franchise is located
• Plan to actively work in and manage the operations
• Computer and internet required
• Have funds to invest in the operation.
• Because it is impossible to predict how long it will take for operation sales to produce sufficient income for the franchisee, it is ideal to maintain another source of income while developing the business or having a partner maintain his/her job.

Finances

Details of payments to be made by the franchisee to the franchisor:

• An initial fee as set out below (no. 1) – payable in cash and non refundable.
• A monthly management services fee as set out below (no. 2i).
• A monthly advertising contribution as set out below (no. 2ii).

1. Initial fee

Lump sum, upfront fee in exchange for the right to use the name, know-how and to receive training and support. You would also have access to our party accessories at discounted prices.

HOW IT WORKS

OPTION A: R25,000

For this you will receive the Fantasy Kids Brand Portfolio Manual which consists of:

• Corporate artwork
• Existing theme logo artwork
• Detailed description for the set up of each existing theme
• Detailed description of each game
• Details for all existing costumes, including patterns, detailing, accessories
• Patterns for existing theme costumes with pictures of each one
• Artwork for flyer
• Artwork for 1/16 ad

OPTION B: R75,000

For this you will receive:

• All of the above

PLUS

• 10 costumes per theme, fully made up

OPTION C: R125,000

For this you will receive:

• All of the above

PLUS

• 1 x Easy Up Gazebo
• 5 x Plastic Junior Tables
• 30 x Kiddies Junior Chairs
• 25 x Table Covers - 5 Colours
• 150 x Chair Covers - 5 Colours
• Balloon Pump
• 100 Party Buckets - assorted colours
• 500 Balloons - assorted colours
• 100 Balloon Sticks
• 4 x Birthday Photo Boards
• 1 x Photo Board Frame
• 2 x Happy Birthday Banners
• 2 x Branded T-Shirts
• 1000 Business Cards
• 5000 A5 Flyers
• 2 x Car Magnets
• Training
• Wholesale Party Decor - You purchase directly from the suppliers at ABSOLUTE COST!
• Listing on our Website and other Internet Sites to enhance your business exposure

Your package will be delivered to you 4 - 6 weeks after signing the agreement and once payment has been finalised!

2. Ongoing fees

i) Management Services Fee: For this you will receive:

• Internet maintenance and query referrals
• PR exposure
• Updating of themes and any new ideas/themes
• Artwork, patterns, detailing, description of accessories for new themes/ideas
• Detailed set up description of new themes/ideas (Note: new themes/ideas will not occur on a monthly basis, but will be added at regular intervals)

COST PER MONTH

2008 = R500/ month

2009 = R550/month

After 2009, we can renegotiate this monthly payment.

ii) Marketing Fund: R500 to pay for costs involved with providing national and regional marketing drives - this includes monthly marketing on the internet and online support.