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CD Warehouse

CD WAREHOUSE is a rapidly growing franchise, specializing in the sale of pre-owned CDs and DVDs. Our stores also buy and trade used CD's, sell top new CDs, and sell other music-related items. Our proprietary software makes it easy to buy and sell pre-owned CDs, even without prior music knowledge.

Franchisor Background

Year Established:

1992

Franchising Since:

1992

Operating Units:
Franchised Units:	159	85.5%
Company-Owned Units:	27	14.5%
	______	_____
Total Operating Units:	186	100%

Geographic Distribution:
U.S.:	186	91.6%	In 33 States
Canada:	7	3.4%	In 3 Canadian Provinces
International:	10	4.9%	In 0 Foreign Countries
	______	_____
Total:	203	100%

North America:
States/Provinces with the largest number of operating units:
Density	Units
1. Texas	51
2. Florida	21
3. California	17

Registered in Following Registration States:

California, Florida, Illinois, Indiana, Maryland, Michigan, New York, Oregon, Rhode Island, Virginia, Wisconsin

Financial Requirements

Investment:
Minimum Net Worth:	$150K
Cash Investment:	$40-60K
Total Investment:	$122-162K
Average Total Investment:	$142K

Fees:
Initial Franchise Fee:	$20K
Average Franchise Fee:	$20K
On-Going Royalty:	5%/4%
Average Royalty:	4%
Advertising Fee:	1.75%

Average Number of Employees:

2-3 Full-time, 3-4 Part-time

Space Needs (in square footage):

1,500-2,000

Preferred Sites:

Free-standing Building, Strip Center

Other Sites:

Encourage Conversions?

Not Applicable

Earnings Claims Provided?

Listed in the SBA Registry?

Support and Training

International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	25
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct

Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified

On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees

Training:
1. Oklahoma City, OK Training Center	5-6 Days

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):

Financial Net Worth:	5
General Business Experience:	3
Specific Industry Experience:	1
Formal Education:	2
Psychological Profile:	4
Personal Interview(s):	4

Minority Representation

Units Owned by Minorities:
African-American:	N/A
Asian-American:	N/A
Hispanic:	N/A
Native American:	N/A
Other:	N/A
Specific Minority:	N/A

Terms of Contract

Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed, But Discouraged
Area Development Agreements?	Yes, for 1 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes

Expansion Plans

Projected New Units Over Next 12 months:

U.S.:	Yes, All United States
Canada:	Yes, All Canada
Overseas:	Yes, All Countries

Franchisor Background

Year Established:

Franchising Since:

Operating Units:

Geographic Distribution:

North America: