Toyzlot is a popular power sports extreme super toy store known for its wide selection of Ride-Ons for kids and the kid at heart. Toyzlot is known for their unique and cutting edge selection of ATV’s, Dirt-Bikes, Scooters, Verttire e-bikes, Roc Ryders, Ntoni Dolls, GenX electronics and so much more. The company has been in business since 2019 and has since grown to become one of the most successful and only Black Owned toy store chain in the United States.
The success of Toyzlot can be attributed to its unique Licensee model. Unlike other toy store chains that allow anyone to purchase a Licensed Store, Toyzlot has a rigorous selection process that only allows a select few to become Licensee Owners. In this article, we will take a closer look at how the Toyzlot Licensee model works.
Licensee Selection Process
Before we dive into the specifics of the Licensee model, it is important to understand the selection process for Licensed Toyzlot stores. We are known for being incredibly selective in choosing who can open a Licensee store, and for good reason. The company wants to ensure that each location maintains the same prominent level of quality products and customer service that Toyzlot is known for.
To become a Toyzlot Licensee Owner, you must first apply to the company. The application process is extensive and includes several rounds of interviews with Toyzlot representatives. The company is looking for individuals who have a proven track record of success in business, as well as a strong commitment to their community and customer service.
If you are selected to start a Licensee business with Toyzlot. Toyzlot will provide you with comprehensive training on how to run your business. The company also provides ongoing support and resources to help you succeed.
Ownership Structure
One of the unique aspects of the Toyzlot Licensee model is its ownership structure. Unlike other Franchisee and Licensee models where the Licensee owns the business outright, Toyzlot Licensees are more like operators. The company owns the building or secures the lease, while the Licensee operates the business.
This means that the Licensee is responsible for the day-to-day operations of the store, such as hiring employees, managing inventory, and ensuring quality control. However, Toyzlot owns the real estate or lease, signage, and equipment, and the Licensee pays rent to the company.
Revenue Sharing
Another unique aspect of the Toyzlot Licensee model is the revenue-sharing agreement. Rather than taking a percentage of the Licensee’s sales, Toyzlot charges a flat fee for the right to operate the business.
The fee for the initial Toyzlot Licensee agreement, covers the inventory, POS, mural and signage. The fee for the initial Licensee agreement is predicated on the size of the store. The lease rate and deposit for the location will be determined after site selection and due 21 days prior to opening. The nominal quarterly royalty fee includes all the resources and support that Toyzlot provides to Licensees, such as marketing, training, below wholesale inventory pricing and access to all Toyzlot exclusive brands. .
This revenue-sharing model allows Toyzlot to maintain a consistent brand image and level of quality across all its locations, while also providing Licensees with the resources they need to succeed.
Site Selection and Development
Toyzlot is very involved in the site selection and development process for each new location. The company has a team of real estate professionals who work with Licensees to identify potential sites for new stores.
Once a site has been selected, Toyzlot will secure the building and/or lease for the store. The company has strict guidelines for the design and layout of its stores, which are intended to create a consistent customer experience across all locations.
Training and Support
One of the keys to the success of the Toyzlot Licensee model is the comprehensive training and on-going support that the company provides to its Licensees. Each Licensee must complete an extensive training program that covers all aspects of running a Toyzlot store, from model demonstration, exclusive product specifications, Toyzlot history, POS training, Warranty protection and customer service.
The company also provides ongoing support to Licensees, including marketing and advertising materials, operational support, access to the customized POS operating system (optional), technology, and support teams that are in place for the Licensee.
For more information on how to become a Toyzlot Licensee, Contact Us.
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