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Izon Global Media Franchise Cost & Fees

Date of Incorporation: 2003

Franchising Since:  2003

Headquarters: West Palm Beach, Florida

Business Description: : Izon Global Media (formerly Billboard Connection) offers and sells franchises for advertising agencies specializing only in out of home media such as billboards, airports, malls, mobile, aerial, stadiums and transit. The franchised agencies do not sell radio, television, direct mail, newspaper or similar advertising services. In addition to the placement for clients of advertisements in out of home media, the franchised agencies arrange for the provision of, and are compensated for obtaining, certain products such as print vinyl and services such as art design. The niche market for an advertising agency specializing in out of home media includes primarily business product and service advertisers and, to lesser extent, public service and nonprofit corporation advertisers. In May 2012, Billboard Connection, Inc. changed its name to Izon Global Media, Inc.


Franchise Offer:The franchisee will operate an advertising agency specializing in out of home media such as billboards, airports, malls, mobile, aerial, stadiums and transit.


Financial Assistance:
Izon Global Media does not offer direct or indirect financing nor do they guarantee the franchisee’s note, lease, or obligation.


Training and Assistance:Prior to opening an Izon Global Media Agency, the franchisee must attend and complete the extensive one week training program held at corporate headquarters in West Palm Beach, Florida to the franchisor’s satisfaction. Training fees are covered in the initial franchise fee. Transportation to West Palm Beach, hotel accommodations and one daily meal will be provided. The franchisee may bring additional persons to the initial training at no extra cost except that the franchisee will be responsible for their travel, hotel and meal expenses. Training currently consists of approximately 40.5 hours of classroom training and 40 hours of on-the-job training. On-the-job training will be provided by field representatives in your Designated Marketing Area. Every 12-18 months Billboard Connection will hold a convention for franchisees.


Territory: The franchisee is granted the right to operate a Izon Global Media Agency from a location within a Designated Marketing Area. The Designated Marketing Area will be a geographic area. The area may consist of a specific mile radius or other area defined by city or county limits, highways or streets, zip codes or other similar factors as determined by the franchisor. There is no minimum size for a Designated Marketing Area and the size of the Designated Marketing Area will vary depending on the population and business counts. The franchisee may only operate the business from within the Designated Marketing Area and, while the franchisee is not restricted from soliciting businesses outside the Designated Marketing Area, the franchisee is expected to devote his or her marketing activities to businesses located within the Designated Marketing Area and to respect the marketing areas of other franchisees and not actively market in their marketing areas. The Designated Marketing Area is exclusive in that the franchisor will not operate company-owned agencies and/or grant additional franchises to operate from locations within the Designated Marketing Area or actively market or allow other franchisees to actively market in the Designated Marketing area.


Term of Agreement and Renewal:The length of the franchise term is 35 years. A renewal term of 35 years is available under a new agreement which may contain materially different terms and conditions. For renewal, a franchisee would also have to pay $1,500 renewal fee and sign releases.


Obligations and Restrictions:
If the franchisee is an individual, he or she must directly supervise and manage the Izon Global Media Agency. If the franchisee is a corporation, partnership or other business entity, a principal, general partner or the fully trained manager must devote full-time and best efforts to the management and operation of the Izon Global Media Agency. The Agency must at all times be under the direct supervision of someone who has completed our training program. The franchisee must also maintain a competent, conscientious, neat and trained staff where applicable. Franchisees are required to offer and sell only goods and services that have been approved.


Estimated Number of Units:125


Investment Table:

Initial Investment:

Name of fee Low High
Initial Franchise Fee $17,000 $29,900
Advertising Fund
Initial Membership Fee
$750 $750
Travel and Living Expenses While at Training School

$126

$18 per day

$280

$40 per day

Computer Hardware and Software $0 $3,900
Insurance $750 $2,000
Office Rent and Equipment $0 $6,000
Opening Supplies $500 $1,500
Additional Funds (0-6 months) $10,000 $20,000
Estimated Totals $29,126 $64,330

 

Other Fees:

Type of Fee Amount
Royalty 3.5% of monthly gross billings with a minimum monthly royalty of $150 in the first 3 months; $300 in months 4-12; $450 in months 13-24 and $750 thereafter.
Marketing Fee $750 initial membership fee. .5% of monthly gross billings with a minimum monthly fee of $100 in months 1¬-12; $150 in months 13-24 and $200 each month thereafter.
Intranet Maintenance Fee $35.00 per month or the current fee.
Transfer/Training Fee    The greater of $17,000 or then current transfer fee at time of transfer.
Internet Website Maintenance Fee $15 per month or then current fee.
Email Address Fee $1 per month per address or then current fee.
Renewal Fee $1,500 for Izon franchisees and $500 Development Agents.
Development Day Expenses One-half of all expenses incurred by Izon.
Audit Cost of audit plus interest on underpayment.

The above information has been taken from the FDD of Izon Global Media. Year of FDD: 2013

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