DISCOUNT SPORT NUTRITION FRANCHISING Q&A

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Question: Why would I want to own a Franchise?
Answer: Owning a Franchise allows you to bypass the headaches of starting a business from scratch. Everything has already been set up for you. As a franchisee, you will enjoy many things, such as:

  • Group advertising power
  • Owning your own business and making day-to-day decisions yourself, guided by the franchisor's experience;
  • The ability to take advantage of higher profits due to the larger discounts from product volume discounts
  • The benefit of identification of service marks, trademarks, proprietary information and designs
  • In-house training
  • Lower risk of failure
  • Being part of a uniform operation throughout the country
  • The enhancement of your management abilities and being the recipient of an opportunity you could not have had in most employment situations



Question:
Why would I want to own a DSN Franchise?
Answer: Discount Sport Nutrition is a company that has been around since 1996. Every employee at DSN is dedicated to making the company succeed. Since the company is mostly made up of young business professionals, the atmosphere is up-lifting and challenging. Everyone wants to be the best that they can be. Most competitors in this business have the idea that selling supplements, vitamins, herbs and other health related products has to be made up of a boring, quiet, and corporate-like surroundings. Here at DSN we target the younger generation which has the more "upbeat" and "fun-to-be-at" stores. We at DSN want to take care of our franchisees, our employees and our customers. Come into any one of our stores and you will definitely see and feel the difference. Since we do have such great relations with around 20 distributors around the United States, we receive the BEST discounts in the industry. We know a lot of companies might say they get good discounts, but look at our prices and you can tell we get something special. Our franchises will be able to buy their supplements directly from our approved suppliers.


Question: How much is the initial investment?
Answer: Discount Sport Nutrition states that you will need at least $87,795 to begin operation of a DSN Store which does include the initial Franchising Fee. This initial fee includes things such as, DSN's approved POS computer software, computer equipment, shelving, product inventory, furniture, training, office supplies, build-out, and much more. Each stores' expenses are different depending on the location and size of the store you pick out. We leave that part up to you. Our range for start up is between $87, 795 to $170,295.



Question: What is the term for the Franchise Agreement?
Answer: The term of the Franchise is 10 years per agreement with the option to renew at the of the 10 years. Any franchisee can relocate or transfer their store at anytime during there agreement. Relocation and transfer fees do apply but this allows you the option to not feel tied down.



Question: Where can I put a DSN Store?
Answer: DSN must approve all site locations. Generally we like our stores next to a gym, college or sports related complex. We are only offering our franchises in the United States at this time. We have not moved into these states as of yet: CA, CT, HI, IL, IN, KY, ME, MD, MI, MN, NY, ND, RI, SD, UT, VA, WA, and WI. We will be moving into these states and outside of the US later on. We believe that dealing with a smaller region in the beginning will benefit everyone.


Question: Can I operate more than one DSN Store?
Answer: Yes. You can own and operate as many stores as you want as long as you meet our financial and operational guidelines.



Question: Can I sell my DSN Franchise?
Answer: Yes. Like any other business you can sell to a buyer approved by the company. We know there are people that like to build up stores and then sell them after they are up and running. There is a transfer fee to cover all the paper work and other related costs.



Question: How much training will I need?
Answer: We offer a three phase training program which consists of training at a DSN corporate store and training at your store before and during the first few days of operation. We believe getting into the heart of the business will get most of your questions answered and also get you up-to-date on everything we offer. Also at any time during your franchise agreement, you can call us to receive on-going support.



Question: What support do you offer?
Answer: Not only do we give you our confidential DSN Manual that explains all the steps to opening a store and how to operate one, we help you determine the best site location, help with lease negotiations, store decor, permanent sign criteria, beginning inventory and supplies, marketing materials, POS equipment, DSN's full product database, POS software training, opening assistance, grand opening promotion and much more. We also offer continued support through-out the life of your agreement.



Question: Will I be listed on your website and in your catalogs?
Answer: Yes, you will be listed in both places. We want you to be as successful as you can be.



Question: How can I take advantage of your web and catalog sales?
Answer: Every Franchise can take part of our referral program. Any shipment for our warehouse that is shipped to your area from a customer, you will get 3% of the sale every quarter. We feel this will help not only you get our name out but help us get your name out as well. It is a win-win situation.



Question: How will my prices compare to other retailers?
Answer: This one is easy... check out our website, plus look at our prices at any of our stores. You will see that we are one of the cheapest retailers around and have been since 1996.



Question: Do I have to carry every product line that you currently have?
Answer: No, we believe, however, having a large selection of products benefits the customer. The customer will know that we are a one-stop-shop that will meet most of their nutritional needs. DSN just requires you to buy only from our approved suppliers. Our suppliers carry all the major lines of supplements. Franchisees can carry other product lines even if the DSN Corporate stores do not carry them, we just need to approve it. The reason for this policy is that we understand in different areas certain lines of products sell better than others, therefore, the choice is yours. You can even carry more than what we have.



Question: Do you offer any type of protected turf?
Answer: Yes, under your franchise agreement, you will have the right to set up and run a single store at a specific address that you will select and we will approve. Your turf is all the area that is within 2 miles of your DSN store. The reason we call it protected is because we are not going to let any other franchisee or affiliate open another DSN store within that area. You do not have to do anything special (like make a certain level of sales volume or market penetration) to keep your protected turf. It is all yours for the life of the agreement.



Question: What about other DSN company owned stores or franchisees within my city?
Answer: Under out franchise agreement, you also will get a right of first refusal to open an additional DSN store in the same city where your first DSN store is. This means that if DSN Operations or another franchisee or anyone else comes along and wants to open a DSN store within the city limits of your city, you will have a right to do it instead. This will give you the option to own the whole city if you want.



Question: What do I need to do if I am serious about getting a DSN franchise?
Answer: All you need to do is answer our Confidential Franchising Form questions and send it in. Our Franchising staff will review your information to make sure we are both compatible. If we are then you will receive the information in the mail shortly.



We at DSN are proud of our company and we know that you can be successful with one or more of our stores. Please email us if you have any questions at all. No question is a bad question! This is a big decision and we are here to help you in any way. Just email us at franchising@sportsupplements.com

If you want to learn more about Franchising, we recommend a book Titled, The Franchise Bible, by Erwin J. Keup. This book can be purchased from most books stores in you area.

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