Adam & Eve is the most recognized adult brand in the industry. Couple this with years of awards presented to us for being the top adult retail store in the business and you have a recipe for success. We understand that you did not purchase a franchise to spend your time putting together marketing strategies and schedules. That being said—we understand the importance of marketing and the integral part it plays in your success. It is for this reason that Adam & Eve Stores Franchising is committed to ensuring that we support your local digital and grassroots marketing initiatives. We will still recommend that you spend an additional 4% of your gross sales on other paid digital and social advertising in your community.

Our Marketing Team has designed a fully automated digital marketing strategy will help you optimize mobile, social and organic customer acquisition will provide you continuous guidance on where to spend on the more traditional grassroots marketing in your local community. Here are some of the highlights of the support that you will receive from our Marketing Team.

PRE-OPENING & GRAND OPENING MARKETING

We will start planning for the opening about 60 days prior to opening your Adam & Eve Store. Spending this effort prior to opening the doors will introduce the brand to the neighborhood but will also serve to create a “buzz” around what differentiates us from other brands that offer similar products. The Grand Opening event will be staged a few weeks after opening and will include a strong social media push, swag and events that will be heavily promoted in the community.

WEBSITE & LOCAL DIGITAL MARKETING

With the uptick in mobile search—digital marketing is imperative in building a strong local presence. This includes everything from your website to your social media. Our team is well prepared to provide you all the components to ensure that your local store ranks well in digital search.

REPUTATION MANAGEMENT

As your local digital footprint for your business grows—your reputation is very important. The benefits of having a robust review strategy impact both your search results and how the community views your Adam & Eve Stores location.

We work with our local franchise partners to provide both reputation management services and social management so you can focus on your operation. We communicate and engage you as needed and alert you to any review or social interaction that needs your attention.

PRINT & PROMOTIONAL PRODUCTS

Our Marketing Department will create any collateral that will need for your local grass root marketing efforts. We also support local events with collateral and promote them through various social posts.

We will work closely with you to coordinate your annual marketing calendar and our marketing staff is available to visit with you as needed.

ADDITIONAL MARKETING INITIATIVES

  • POINT OF SALE (POS)
  • SOCIAL MANAGEMENT
  • TEXT CLUB

A franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.

Actual results will vary from Store to Store. The below represents a system wide overview of Store net sales, but we did not include any operating expenses. Your revenues may vary significantly depending on a number of factors, including the location of your Store and how you operate your Franchised Business.

Year#UnitsSalesAvg Sales/Mo/StoreMedian Sales/Mo/StoreHighest Sales
200724$7,968,943$33,181$30,362$893,979
200832$10,727,213$31,063$27,612$1,063,161
200936$14,007,775$35,521$29,183$1,371,684
201043$17,320,652$37,714$30,648$1,410,480
201142$19,204,246$39,650$38,731$1,343,181
201249$23,646,747$44,160$40,439$1,730,563
201354$25,468,772$42,520$39,185$1,591,083
201461$29,868,335$42,255$40,188$1,531,199
201564$34,003,913$45,107$40,564$1,479,535
201667$37,036,280$46,191$40,516$1,382,500

These Stores offered substantially the same products and services to the public as you will. The Franchised Businesses report gross receipts information to us based upon a uniform reporting system.

Starting in late 2010, however, new franchisees were required to install a software system that would allow us to access to gross margin data, and two franchisees converted their 6 pre-existing stores into Adam & Eve Stores. In 2013 there were 22 stores utilizing the software system, in 2014, there were 24 stores utilizing the software system. In 2015 there were 26 stores utilizing the software system and those stores averaged a gross margin of 59.8%. The low end of the average was 40.8%. The high end of the average was 65.5%. We strongly urge you to consult with your financial advisor or personal accountant concerning the financial analysis that you should make in determining whether or not to purchase an Adam & Eve Store Business. In 2016 there were 28 stores utilizing the software system and those stores averaged a gross margin of 68%. The low end of the average was 63%. The high end of the average was 72%. We strongly urge you to consult with your financial advisor or personal accountant concerning the financial analysis that you should make in determining whether or not to purchase an Adam & Eve Store Business.

The financial performance figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Adam & Eve Store. Franchisees or former franchisees, listed in the disclosure document, may be one source of this information.