This document provides an overview of a proposed franchise model for a custom framing business called Fancy Art, NFP. Key points: - The framing industry remains untapped despite being a multi-billion dollar market, due to perceptions of difficulty and expense. - The proposed model aims to make custom framing fun and easy for customers by offering a vast selection of frames and art in a spacious gallery setting, and an easy ordering system. - Orders would be fulfilled at local hubs to provide economies of scale and efficiencies, without stores needing extensive equipment or staff. - Financial projections estimate $1.59 million in total earnings over three years with 18 locations generating over $9

1. ENTREPRENEUR
PRESENTATION
Fancy Art, *NFP
*Not Fancy Prices
Framed art is in every home and office, a multi-billion dollar industry; it is a big ticket
item and even though we live in an image conscious society, it is the only industry
remaining, that is not mature and fully developed; most people will tell you that they
have never done custom framing, because it is perceived as being too difficult to do
and very expensive. The problem is that the industry uses an antiquated distribution
system, made up of many layers of middlemen, each taking a profit and ratcheting up
the price.

2. But what if instead of Difficult &
Painful - it was made Fun & Easy
There would be a huge untapped
market waiting to be served. Think
about this, if the internet is a
barometer of human emotion, then
what are its most popular sites:
“Facebook”, “Instagram”,
“Pinterest”, “YouTube” and many
more, the one thing that they all
have in common are pictures.
Further, according to a recent
study: “The human mind
interpolates a picture 64,000 times
faster than it decodes written
words”. That means that when
someone walks into your space,
they are already forming first
impressions about your lifestyle
and values. Today, everyone wants
a way to express their own
individual identity and what better
way to do that, than with their art.

3. So how do you take something that is perceived as being difficult and painful and
make it fun and easy? It all begins with the presentation; most frame shops are small,
with a limited selection and poorly merchandised, whereas our galleries are spacious.
with a vast array of framed art, to arouse the customers perceptions of the types of
things that they can create for themselves.

4. There are thousands of unframed artworks for customers to choose from, we will even
let them borrow pieces, take them for a test drive in their setting before making a
commitment. Again, first impressions are very important and we want our customers to
feel comfortable and at ease in making their decision.

5. Once the artwork is selected, whether from us, or purchased elsewhere, we can offer
options for framing that they won’t find anywhere else. Our patented racking system
displays thousands of frame samples, where most frame shops, even large competitors,
have only a few hundred; notice that the frame samples are accessible, not behind a
counter, so that it’s easy to try different frames and compare, until they have created the
perfect combination for their taste and budget. It is important to note that as they are
doing this, they become vested in the outcome and price becomes less significant.

6. Corroborating this, Dan Airelly, a prominent
behavioral psychologist when interviewed on PBS
television by economics reporter Paul Solomon
on what motivates people http://bit.ly/2MOtiv8,
said that “people will spend up to five times as
much for something that they feel that they have
created as opposed to buying something
readymade.
Another important difference is that in most frame
shops, they have dollars per foot printed on the
back of the frame samples, so if you saw $20 or
$30 a foot, it might discourage you from going any
further; Fancy Art, *NFP uses a numbering
system, that goes from 01 to 15 and the higher
the number the more expensive the frame; then,
when we scan it into our handheld computer, if
the price is a little more than what you wanted to
spend, you will go back and find a lower number,
but it hasn’t scared you away; it’s the same
reason they give you chips when you go to Las
Vegas.

7. Once the artwork is
composed to their liking our
Fancy Art Order
Management System,
makes the experience fun
and easy. Our proprietary
handheld point of sale
device makes it fast and
easy for them to try different
combinations and tweak it
to their taste and budget.
Then the order(s) are
transferred over to the store
computer, which prints an
invoice and creates a
record of the sale and
archives all of the
particulars so that if they
ever want to lookup or
replicate a previous order, it
can be done easily.

8. Now here is where it gets
interesting, once the
customer has paid and left,
the associate double check
the order and update their
record, then they push a
button and the order(s) is
transferred via the internet
to the local hub where most
of the work will be done. At
the hub, the frame, the
matting, the glass and most
other ancillary services will
be fabricated and then
returned to the shop for final assembly and finishing.
This means that the shop owner ●doesn’t have to buy or allocate space for a lot of
expensive equipment, so they can afford to be in a more upscale location, ● they
don’t have to order materials or have left over stock to store, ● they don’t have to
have the learning curve to know how to do the many different technical aspects and
● they don’t have to have the employees that would normally be necessary to do
that work. Most important, by funneling everything to a central hub, it gives us
efficiencies and economies of scale that can’t be beat.

9. As proof, we took the
same picture, first we
framed it, then we went
to store ‘B’ and had
them frame it as close
to ours as possible,
then we clipped out a
50% off coupon from
another large
competitor and had
them frame it. Here are
the result, our price
was $146.85, Store ‘B’,
charged us $273.00
and Store ‘C’, famous
for advertisisng with a
50% off coupon,
charged us $264.70.
We usually get a
“WOW” when we show
this to people.
Want to know who stores ‘B’ and ‘C’ are? Just ask!

10. In summation, art and framing is ubiquitous, it appeals to every age group from 4 to
94, it’s gender neutral, it can be understood in any language and appreciated by
every ethnic, religious and racial group.

11. The World of Art is Vast and
So are its Opportunities:
⬜ Artwork Sales
⬜ Custom Framing
⬜ Custom Mirrors
⬜ Canvas Transfers
⬜ Digital Printing
⬜ Art Restorations
⬜ Art Appraisals
⬜ Consigned Art
The opportunities are vast and there are many different profit centers

13. As long as we have living spaces, we
will want to have something on the
walls to decorate them; framed art is
needed in every home and every office;
catering to a clientele who appreciate
the finer things of life and has the
discretionary income to afford them; a
high ticket item with high profit margins;
low staffing requirements; eliminates
the need to tie up money for
unnecessary space, equipment and
materials; exclusive franchise
territories; a friendly and low stress
work environment; and finally,
complete support nearby to answer
your question and assist you to
maximize your potential.
you’re in business for yourself,
but not by yourself.

15. Materials Retail Wholesale Hub Cost
Glazing $43.75 90.00/8 11.25
Foam Board 21.00 44.00/25 1.76
Fitting 16.00 -------- 16.00
Frame Moulding 122.00 2.43 x11.25 27.34
Mat Board #1 43.75 10.80 10.80
Mat Board #2 43.75 10.80 10.80
Miscellaneous 20.37 --------- --------
Retail: $311.24 $77.95
Hub Prdctn Chrg 33% <103.75> 103.75 – 77.95 = $25.80
/Gross Profit: 24.87%
Franchisee Gross Profit: $207.49

16. • Fancy Art, *N.F.P.
• Three Year Projection for Franchise Expansion
•
• Our franchise fee is $24,500.00 and we anticipate a $7,000.00 cost to acquire each franchise location. In this
example, we are assuming 80% of sales as framing and 20% from other products and services; actual results will vary
from location to location. The franchisee will have a 200% markup from our recommended pricing on framing and
100% on all other products and services. We will collect a 7% royalty on gross sales and expect to make a 10% net
profit on the sale of supplies and provisions to the franchisees. We expect a minimum average yearly gross sales of
$150.000.00 per location, which will generate an average of $55,000.00 in sales of provisions and supplies per
location.
• Using these criteria we project the following in earnings:
•
• (A) (B) (C) (D) (E) (F) (G) (H)
• New Total Franchise Cost of Yearly Royalty *Sale of
• Year Units Units Fees Sales Gross Sales Revenue Supplies Summary
• (A) (A+B) (Ax24,500) (Ax7,000) Bx150,000) (Ex 7%) (B x 55,000x10%) (C-D+F+G)
•
• One 6 6 $147,000.00 42,000.00 900,000.00 63,000.00 33,000.00 $201,000.00
• Two 12 18 294,000.00 84,000.00 2,700,000.00 189,000.00 99,000.00 498,000.00
• Three 18 36 441,000.00 126,000.00 5,400,000.00 378,000.00 198,000.00 891,000.00
•
• Totals: -- 36 $882,000.00 $252,000.00 $9,000,000.00 $630,000.00 $330,000.00 $1,590,000.00
• (From framing sales = $40,000) (Sundry sales = $15,000)
• * ($150,000 x .80 x .3333) + ($150,000 x .20 x .50) = $55,000
• *Not Fancy Prices
This is a projection for a hub –n-spoke business model. There can be a hub in any high population density
area. cities such as New York, Chicago and L.A could support two or three hubs and since each hub is local,
supporting anywhere from 10 to 30 satellite locations, they are able to tune in to the tastes and style of their
region, while still being connected to a national network. All of the frame mouldings would be cut to the
order(s) specification and shipped to the local hubs from our national distribution center.

17. Allocation of Funds
Seeded to Global Market Ventures, Inc:
Illinois as well as some other registration States, have a financial threshold requirement and if
you fall below the minimum, they require an addendum to your franchise agreement that has a
deleterious connotation . Although we have sufficient assets to satisfy this requirement, we
cannot declare them without having audited returns for each year the parent corporation has
been in existence; in our case, going back to 1992, which would be cost prohibitive. This is why
most new franchises form a new corporation.
Website & Social Media Development:
We have created “FranchiseYouniversity.com” and updated Fancyartnfp.com and will continue
to make inroads in order to identify, nurture and build trust of prospective franchisees..
Marketing: Public Relations:
Promote and enhance our brand through press releases, social media marketing. Additional
display advertising and promotions
Working Capital:
Property acquisition, product development, staffing, equipment, supplies
Reserves:
Sundry & Miscellaneous Items:
Like a finely tuned sports car, we have tweaked our concept and honed our
innovations to the point where we can run circles around our competition; now all
we need is to put some fuel in the tank, so that we can get out on the track to
compete. . In this case, the fuel for our vehicle is capital to enable us to promote,
market and expand our franchise brand.

18. -The End -
of The Beginning
If You Got The Picture
Contact us For More Information
Fancy Art, N.F.P.
“Framing The Art of Business,
in The Business of Art”
The end of this presentation, but hopefully just the beginning of our journey
together. We look forward to forming a mutually beneficial relationship. We have
been developing and refining this concept for over 25 years, so we are confident
that we can satisfy any question and/or concerns you may have.