Buying the license to a territory rather than a franchise

**Lazsis** · 05-24-2008 11:01 AM

I was looking into franchises when I ran across a jewelry sales concept for sale. I am considering buying the license to a territory to sell their fashion jewelry--retail b/w $30 and $130. They tie their jewelry to a gimmick, which I think has a great attaction to customers.

I am completely unfamiliar with both their brand name and licensing in general. The initial purchase price seems low at $1500, then $50/month. There is no obligation to continue for a specified amount of time, and the territory can be sold by me to someone else at any time.

It seems like I get to reduce a LOT of legwork trying to find just the right jewelry, and they have--I think--a great concept to at least intrigue customers that would take a lot of time to try to duplicate. On the other hand, they won't provide much of the training or support that a franchisor would.

Does anyone have experience with something like this, or opinions on it?

Thanks!

**matt_15** · 06-01-2008 02:27 PM

no cant help you

**rogercbryan** · 06-01-2008 03:14 PM

Do some market research to see if any one would buy their stuff. Ask them for a point of contact for someone who works in a territory a few states away, talk to them and see what they have experienced. Spend the $300 to have a lawyer look at the contract. Write a business plan that outlines your sales, accounting, marketing, and growth options.

Then take a deep breath... pull the trigger and get to work!

**freeman** · 06-28-2008 12:04 AM

Come on...this company is doing nothing more than selling some schmuck a $1500 license( LOL) and making them buy an inventory of jewelry.

they're making money off of the $1500 and the merchandise they initially sell you.

There are closets all over America filled with overpriced, cheap jewelry that people could never sell. If the product was sale able, why would they need you? Seriously, $1500? If all it took was that little to make an amazing income why the hell would a company need anyone?

Almost as bad as the millions of soda machines lining thousand of garages.