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Category Archives: Extras

Area Developers

Big Mouth Direct, Inc. offers an exciting program to area developers.  An area developer agrees with a franchisor to open a certain number of units by a set date in a specified, exclusive territory. The area developer pays a development fee up front for this exclusivity, and a franchise fee each time they open a unit. They will benefit from financial incentives as they open additional units, enjoying reduced fees in exchange for building the brand successfully in their territory.

Area developers can also recruit and train franchisees to launch new units in their territory. The area developer receives a percentage of the franchise fee for each new unit sold to a franchisee, along with a percentage of the ongoing royalty fee. An area development agreement with Big Mouth Direct may be attractive and suited to an individual or company looking for a significant investment opportunity to which they can bring their strong management experience, proven track record and, often, knowledge of the industry concerned. Big Mouth Direct, Inc. is motivated to use the area development model as its main method of expansion wherever possible because it prefers to (a) deal with one entity operating several units and (b) allocate the recruitment and support of franchisees to experienced representatives who are often more familiar with the territory than the Big Mouth Direct Inc. because they already do business there. Big Mouth Direct Inc believes that having the right area developers in place can greatly accelerate the growth of its franchise system.

Data Management

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In today’s fast-paced business environment, franchisees have to be up-to-date and business savvy in order to remain attuned to the market . One way to do this is to use data in order to make key business decisions. Franchisees need financial data in order to analyze profit and loss statements, balance sheets and cash flow statements. Lots of other data is needed to boost sales, discover new target markets, and to adjust marketing strategies. Big Mouth Direct, through its affiliate, Biz Data Systems Inc, provides a software system that gives franchisees the data and reporting they need to operate their businesses.

Through a cloud-based, real-time data management and document tracking software system provided by Biz Data Systems, Inc., an affiliate to Big Mouth Direct, Inc., franchisees are provided a low-cost tool that captures the data franchisees need to be successful. With the data readily available, franchisees are empowered to operate efficiently, boost sales, limit IT costs and retain customers.

The Big Mouth Direct data management system requires no hardware or software purchases. If you have a web browser, you can access the Big Mouth Direct software system with any device from anywhere at any time.

Franchise Fees & Costs

franchise fees and costs

Big Mouth Direct offers an easy and flexible plan which makes enables many to own their own franchise.  There are four types of fees that a franchisee will pay to Big Mouth Direct:

  1. Initial franchise fees
  2. Ongoing royalty fees
  3. Ongoing advertising fees
  4. Ongoing data management fees

Initial Franchise Fees

At the time of signing the franchise agreement, the franchisee shall be required to pay Big Mouth Direct an initial franchise fee.  This initial fee is simply determined by the number of small-to-medium sized businesses in the territory the franchisee plans operate his or her business.  Franchisees can determine start small and later determine if they wish to expand their territory.  Franchisees pay one dollar ($1.00) per small-to-medium sized business in their exclusive territory.  If a franchisee determines to secure an exclusive territory with ten thousand (10,000) small-to-medium sized businesses, Big Mouth Direct will add an additional ten percent more businesses in the territory-in this example, another 1,000 businesses, to offset any listings in the franchisee’s exclusive territory which may be large retail chains, businesses that relocated or may be out of businesses.  That way, franchisees are ensured the proper number of small-to-medium sized businesses in their territory.

Further, Big Mouth Direct gives its franchisees an option to expand its territory for ninety (90) days from the signing of the Franchise Agreement at the same rate of one dollar ($1.00) per small-to-medium sized business; thereafter, the rate shall be two dollars ($2.00). This provision allows the franchisee to approach the Big Mouth Direct business conservatively. Then, if the franchisee enjoys early success, he or she may increase the number of small-to-medium sized businesses by expanding its exclusive territory.

Royalty Fees

Franchisees are required to pay Big Mouth Direct an ongoing royalty fee of twelve and one half percent (12.5%) of sales as they are collected each month.  In that way, franchisees only pays Big Mouth Direct when the customer pays.

Advertising Fees

Franchisees are required to pay Big Mouth Direct an ongoing advertising fee of  ten percent (10%) of sales as they are collected.  In that way, franchisees only pay Big Mouth Direct when the customer pays.  Big Mouth Direct is dedicated to optimize its national online business directory, and its suite of digital products and services.  Franchisees contribute to those online advertising efforts to  increase Big Mouth Direct’s visibility on the Internet and to drive traffic to its online sites.

Data Management Fees

Franchisees are required to pay Big Mouth Direct an ongoing data management fee of two and one-half percent (2.5%) of sales as they are collected.  In that way, franchisees only pay Big Mouth Direct when the customer pays.  Big Mouth Direct, through its affiliate Biz Data Systems Inc., provides franchisees with a cloud-based, real-time data management and document tracking system from anywhere at any time with any device whether desktop or mobile, which generates data and reports that empower franchisees to operate their businesses efficiently and profitably.

Summary of Franchise Fees and Fulfillment Costs

After taking into account franchise fees and other expenses, including a royalty fee (12.5%), advertising fee (10%), data management fee (2.5%), and paying for fulfillment, customer service, and tech support (50%), franchisees will gross 25% of retail digital sales made to their clients.

Financing

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Generally, franchisees are expected to arrange their own financing of the initial fees because Big Mouth Direct’s program is flexible and enables franchisees to determine how much they can afford. However, Big Mouth Direct may consider, from time-to-time, to finance some or all of the initial franchise fees. Factors including but not limited to the franchisee’s creditworthiness, business and sales experience, knowledge about digital services, existing book of business, the size and location of the exclusive territory and Big Mouth Direct’s assessment as to the probability of the franchisee’s success. In the event, Big Mouth Direct elects to finance a prospective franchisee, the terms and conditions may vary with regard to the length of the financing and /or the interest rate charged.

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