Home > News > Adam & Eve Signs Midwest Franchisee • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Adam & Eve Signs Midwest Franchisee

Adam & Eve Signs Midwest Franchisee
Get XBIZ News
XBIZ Research
Should governments have the power / ability to stop content piracy? (e.g. SOPA / PROTECT IP)
Yes
  45.22%
No
  45.22%
Undecided
  9.57%
Out of 230 votes. Results based on votes submitted by members of XBIZ.net social network.
Tuesday, Jun 20, 2006    Text size: 
HILLSBOROUGH, N.C. — Looking to gain a foothold in the Midwest, adult retailer Adam & Eve has signed its first franchisee in Dearborn, Mich.

According to Adam & Eve operations manager Marcus Goswick, franchisees have come from a wide range of backgrounds, from those with years of adult business experience to bona fide newcomers.

“We don’t have a typical franchisee,” Goswick told XBIZ. “We’ve had people who have no experience at all in adult retail and we’ve had people who are looking to convert their existing stores into our brand. In this case, Mike Konja [the Dearborn franchisee] owns four stores in the state but he’s looking to compete in a different demographic group.”

Unlike typical adult video stores, which target a predominantly male clientele, Goswick estimates that 60 to 70 percent of customers at Adam & Eve stores are female. For Konja, Goswick explained, an Adam & Eve store represents a way to break into a market his four stores can’t access.

While the Dearborn store is still in the planning stages — Goswick said that Adam & Eve will begin helping Konja scout for locations — the company plans an aggressive growth pattern for its franchise operations with 20 franchises nationwide by year’s end and an additional 10-15 franchises signed up next year.

According to Goswick, the real constraint on Adam & Eve in terms of growing its franchise operations is seeking regulatory approval. While the company successfully filed its Uniform Franchise Offering Circular with the Federal Trade Commission, several states must approve the document before Adam & Eve can begin selling franchises in those jurisdictions.

The company recently received approval to begin operations in New York and California, according to Goswick, but is still waiting to hear from regulators in Maryland, Virginia and Illinois.

While the company could have opted to bypass the franchise model in favor of licensing its name, Goswick said that the brand would be best served if Adam & Eve could retain utmost quality control.

“Franchising gives us the ability to insure that our brand is never in jeopardy,” Goswick said.

The initial fee for a 10-year Adam & Eve franchise is $30,000. According to Goswick, average startup costs for a 2,500-square-foot location are approximately $125,000.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

LEGAL PERSPECTIVES

Need for Serious Value in Content

Most adult entertainment business owners know that distributing sexually explicit materials exposes them to the possibility of prosecution for violation of obscenity laws. But while many know that the... More »

Romney? Perry? 5 Things to Prepare for

It’s the fall of 2011, and the U.S. unemployment rate is at 9.1 percent and the economy appears too many to be heading back into recession. It is not surprising that President Obama’s approval... More »

Killing the Messenger: The Campaign Against Online Escort Advertising Sites

The recent guilty plea by Escorts.com has ignited interest in the legal issues surrounding the operation of an online escort site.  In this two-part blog post, the author will examine real-world examples... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
XBIZ Premiere™, the industry's premier retail focused business journal, features in-depth and comprehensive business news and information targeted for producers of adult videos, novelty product manufacturers, and retailers - subscribe today!

UPCOMING EVENTS

XBIZ London Gathering

Feb 23 - Feb 23
Truckles Wine Bar in Holborn

Adult Entertainment Virtual Convention

Feb 24 - Feb 26
World Wide Web

The European Summit

Mar 05 - Mar 08
Barcelona, Spain

International Lingerie Show

Mar 26 - Mar 28
Las Vegas, Nevada
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!