Thank you for your interest in our stand during the Targów Franczyzy 2018

Ladies and Gentlemen!

Thank you for your interest in our stand during the Targi Franczyzy 2018 exhibition. We apologize for the small athat we could devote to you due to the short duration of the exhibition itself. We are sending you the detailed information about the “Street Radio” franchising project.
The “Street Radio” Company is a provider of innovative technologies in the audio and video advertising market with more than 8 years of experience.
At this time, we broadcast advertising information in 8 cities of Ukraine with a potential advertising audience of over 1,000,000 people.
Advertising is the engine of progress; it tells the news, important information, promotions, and announcements to people in a beautifully fast and accessible way, “Street Radio” is an advertising that is the closest to the consumer.
“Street Radio” is a franchise of the advertising agency that provides services for broadcasting an advertising material (audio clips) of enterprises and companies, and gets money for it.

Where to start cooperation from?

First of all, we would like to invite you for a meeting. Our office is located at 52 Ruska Str., office 39, Ternopil, Ukraine.  You will be able to see how the “Street Radio” works in Ukraine, how the office operates, how equipment is tested, as well as to look at financial reporting for each operating city. We will be able to get acquainted and discuss details of further cooperation. After that, you can make a reasonable decision whether to open of the “Street Radio” in your city. If you do not have the time or opportunity to come to us, we provide you with a sequence of actions for our cooperation.

1. 1.  First, you choose the city you want to work in and the number of stops required. We will gladly advise you on how to choose the right amount of stops. The stops should be evenly distributed throughout the city, at a rate of approximately 1 stop for 8,000 people. On average, the city with 200 thousand people needs 15-25 stops to be installed.

It is not possible to start with 3-5 stops because such number of listeners won’t be of interest to advertisers, and the airtime sales price will be too low and will not override the costs.

1. 1. You apply to the authorities of the city you have selected in order to receive permits for installation of such a system at public transport stops.

In case of receiving a refusal from the city, we will refund you the money that was paid as a franchise fee!

1. 1. After receiving a positive decision from the city council, you pay the second instalment of the franchise fee.
   2. According to the size of your selected city and the number of stops, the list of equipment and costing are determined. To start the production of equipment, you make an advance payment of 50% of its total price. Manufacturing time is 30-45 days. After manufacture of the equipment at the factory, it is tested and tuned by us within 10-12 days.

During the manufacture of equipment, you can look for an office and employees.
For successful project work, we recommend the following:

1. 1. • office space of not less than 25 sq.m.,
      • staff of 4-8 consultancy managers. They will call customers and offer broadcasts, enter into agreements with customers – manage the sales, search for new customers, and continue broadcasting of the existing customers.
      • phones, the Internet connection, computers for workplaces of consultancy managers.
      • a supervisor, who is working with consultancy managers, as well as coordinates and organizes the work – it may be you or a hired director. Payroll of consultancy managers and directors consist of a minimum wage plus a percentage of sales.

A monthly report is drawn up showing the revenue side (clients that are being broadcast – amounts) and the expenditure part (where all the expenses for the month are recorded from rent to taxes and salaries …). After that, your profit for a month is deduced.

1. Staff training is free of charge. Forms of training:
   • • Personal in our office (you send your consultancy managers to us)
     • Remote (webinars, online conferences)
     • Personal at your office (Transportation, accommodation and food expenses are covered by a franchisee)
2. The next stage is installation of equipment in selected locations. You pay the second part of the funds according to the costing report and we send you the equipment. Our technical specialist and representative of the programming department can come to you for installing and launching the system. A loudspeaker is installed directly at a stop, and a multimedia machine (control unit) is placed in a nearby building. The multimedia machine requires electricity (voltage 220V) and access to the Internet (3G, WiFi, LAN). A junctor highway is installed from the multimedia machine to the loudspeaker; the latter is weather and moisture protected (temperature -30 to +50 C). You can choose yourself a working time for the equipment depending on location. The recommended time is from 8.00 to 21.00 every day, without a break and without weekends.
3. In the process of installing the equipment, your employees start calling companies, enterprises, and entrepreneurs, as well as offering advertisements at your “Street Radio” network. This is how you sell air time and make money.
4. Starting from the third month of work, you pay a monthly royalty of 100 zloty for 1 working location.

Recommended model of the system functioning
Each hour of the air is divided into 4 parts.
Messages are broadcast every 15 min.
How does the day of the air on the “Street Radio” look like?

7.50 The multimedia machine turns on and transmits a greeting message.
8.00 The first block of ads.

• • city news (1-2 min.), interesting information
  • ads (social and commercial) up to 12 minutes,
  • the remaining time is automatically filled by the program with music (instrumental) = 15 minutes in total

8.15 The second block of ads.

• • city news (1-2 min.), interesting information
  • ads (social and commercial) up to 12 minutes,
  • the remaining time is automatically filled by the program with music (instrumental) = 15 minutes in total

8.30 The third block of ads.

• • city news (1-2 min.), interesting information
  • ads (social and commercial) up to 12 minutes,
  • the remaining time is automatically filled by the program with music (instrumental) = 15 minutes in total

8.45 The fourth block of ads.

• • city news (1-2 min.), interesting information
  • ads (social and commercial) up to 12 minutes,
  • the remaining time is automatically filled by the program with music (instrumental) = 15 minutes in total

9.00 Replaying of the broadcast template according to an example of the previous hour. Only news and ads are repeated, the background music changes on an hourly basis.
Information is provided by blocks. If the client chooses 1 airing (a minimum package), then his information is repeated every hour from 8.00 to 21.00 at all stops simultaneously. This gives a large number of ad repeats in total and this is one of the “Street Radio” benefits!
News of the city authorities are aired 4 times per hour every 15 minutes from 8.00 to 21.00 at all stops simultaneously.
You have 10-12 minutes of airtime in each block for sale. Accordingly, we sell 40-45 minutes of advertising time in an hour.

How many broadcasts in an hour do the customers choose?

• Minimum order – 1 broadcast in an hour (13 reruns per day at 1 stop, 195 reruns at 15 stops per day, 5850 reruns per month)

• Standard order – 2 broadcasts in an hour (26 reruns per day at 1 stop, 390 reruns at 15 stops per day, 11700 reruns per month)

• Optimal order – 4 broadcasts in an hour (52 reruns per day at 1 stop, 780 reruns at 15 stops per day, 23400 reruns per month)

• Maximum order – 8 broadcasts in an hour (104 reruns per day at 1 stop, 1560 reruns at 15 stops per day, 46800 reruns per month)

• Extra order – 12 broadcasts in an hour (208 reruns per day at 1 stop, 3120 reruns at 15 stops per day, 93600 reruns per month)

How much can you earn?
Calculation of the advertising cost for a client (a city with audience coverage of 100-200 thousand people was chosen for an example (15 broadcasting points))
1 second of advertising at one point = 1 cent
(the price can be changed according to your region)

* – amount without a discount is in black and with a discount – in red.

Using 60%
advertising time
with a discount
40%
income PLN 97 770.