Opinions expressed by Entrepreneur contributors are their own.
Sure, I like birds as much as the next guy. I have a feederoutside my office window that attracts a flock of jovial littlesparrows every day. Feeding the birds enriches the food chain and,frankly, as a former game-bird hunter, it feels good to repayMother Nature. Birds are hard workers; in fact, they've beenthe foundation of many successful franchises--think "extracrispy"--but now there's a franchise concept that actuallyis for the birds: Wild Birds Unlimited (WBU).
A WBU retail store is a friendly spot for our fine featheredfriends, featuring private-label bird feed, feeders, habitats andbirdbaths, as well as literature and gifts. Wild Birds UnlimitedInc., founded by Jim Carpenter and based in Carmel, Indiana, nowboasts more than 260 locations, each utilizing anywhere from 1,200to 6,000 square feet of retail space.
As a franchisee, a WBU store would be a nice place to spend yourtime. You'd be greeted by warm and informative displays while achirping bird soundtrack accompanies the soft sound of the drippersin the birdbaths. In essence, a WBU store is an effectivelymerchandised hobby shop and requires active participation fromentrepreneurs in building personal relationships with thehobbyists.
This fact is best exemplified by the earnings claims publishedby the franchisor, which show average store sales continue to climbsignificantly for at least the first three years a WBU store isopen. According to Item 19 of the company's offering circular,the median annual gross sales of a sample of 19 stores open forbusiness for between 12 and 23 months was $168,058 for the periodending December 31, 1998. The median for stores open two to threeyears was reported as $197,012, while the median for the 50 storesopen three to four years was recorded at $251,890.
Your competition will come from a variety of sources, includingchain stores that stress a lower perceived price point, but WBU hascountered with specialty brands and cute product names like BirdBug Bites--reportedly a delicious blend of bugs and rendered beefsuet. In addition, WBU offers sales clerks the custom-madedistinction of becoming Certified Bird Feeding Specialists. Anysuch specialist could point out that other brands of bird feedcontain fillers, such as milo, which aren't attractive tobirds.
Admittedly, sales levels won't incite a get-rich-quickmentality, especially when you consider the median cost of goodssold for 152 franchised stores was 51.99 percent of median grosssales in 1997. But many franchisees are involved for reasons otherthan money.
WBU, which was ranked the No. 1 bird store franchise and No. 114overall in Entrepreneur's 1999 Franchise 500®, is amainstream franchisor that offers typical franchise support.Franchisees pay a 4 percent royalty as well as advertisingcontributions of as much as 2 percent of gross sales. Thefranchisor estimates your start-up costs will range from $75,876 to$125,043, including the $18,000 initial fee. Ideally, you shouldplace your store in an affluent area populated by college-educatedfamilies with above-average levels of discretionary income. WBU iscurrently seeking to expand in all areas, especially on the EastCoast and in California.
Todd Maddocks is a franchise attorney and small-businessconsultant. You can reach him at TMaddocks@aol.com
Contact Source
Wild Birds Unlimited Inc., (888) 302-2473, http://www.wbu.com
