FDD Talk Daily (Children’s Franchises): Average Yearly Gross Revenue, Number of Photographic Units, and Total Lab Costs for Franchised Images 4 Kids Businesses

This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Images 4 Kids’ Item 19 Financial Performance Representations (2012 FDD)

• You will provide “school picture day” photography services at daycares, preschools, private schools, and other venues under the name “Images 4 Kids.” After you have operated your Franchised Business for at least one year, and with the company’s permission, you may provide other types of photography services.

• The total investment necessary to begin operation of an Images 4 Kids business ranges from $45,600 to $67,100. This includes $28,400 that must be paid to the franchisor or an affiliate.

Average Yearly Gross Revenue, Number of Photographic Units, and Total Lab Costs for Franchised Images 4 Kids Businesses

• As of December 31, 2011, there were 56 Images for Kids Franchised Businesses operating in 26 states. Of these Franchised Businesses, 22 have been operating since January 1, 2005.

• The following section reflects historical sales information concerning these 22 Franchised Businesses. The disclosed sales information was compiled from the company’s Backend/Workflow Management System through which all orders for photographic prints and products are placed.

• Gross Revenue means all revenue derived from the sale of all products and services related to the Franchised Business, less sales taxes.

• Of the 22 Franchised Businesses represented below, 9 businesses attained or surpassed the average sales stated for 2011.

• Sales results for Images 4 Kids Franchised Businesses are affected by a number of factors including:  1) length of time in operation; 2) franchisee individual marketing efforts; 3) local market conditions; 4) demographics (i.e. average household income).

• The following section also includes annual Photographic Units sold by each Franchised Business and their total annual laboratory costs in providing these Photographic Units to their customers.

• Images 4 Kids franchises are required to sell 2,000 Photographic Units during their first Prime Season, 3,000 units during their second Prime Season, and 4,000 units during their fourth and subsequent Prime Seasons.

• Franchised Businesses 3, 4, and 9 operate two territories each.