Business Description

Party America, the 2004 Party Retailer of the Year, is the premier party specialty retailer that captures the "Party Experience" by offering the most comprehensive everyday and seasonal merchandise needed to throw a great party!

Franchisor Background

Year Established:  1980

Franchising Since:  1987

Operating Units:
Franchised Units:	62	21.5%
Company-Owned Units:	226	78.5%
Total Operating Units:	288	100.0%
Geographic Distribution: U.S.: 288 100% In 46 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 288 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	40
2. Colorado	16
3. Minnesota	21

Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia, Alberta

Financial Requirements

Investment:
Minimum Net Worth:	$400K
Cash Investment:	$150K
Total Investment:	$335-500K
Average Total Investment:	$417K
Fees:
Initial Franchise Fee:	$25K
Average Franchise Fee:	$25K
On-Going Royalty:	4%
Average Royalty:	4%
Advertising Fee:	1%

Average Number of Employees: 4 Full-time, 6 Part-time

Space Needs (in square footage): 6,000-10,000

Preferred Sites: Storefront, Strip Center

Other Sites: Power Ctr.

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	5
General Business Experience:	4
Specific Industry Experience:	3
Formal Education:	4
Psychological Profile:	4
Personal Interview(s):	5
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	Yes, for 5 Year(s)
Sub-Franchising Contracts?	Yes
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	100
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
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:	Not Applicable
Training:
1. Alameda, CA	5 Days
Expansion Plans
Projected New Units Over Next 12 months: 10 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: Yes, All Countries	Request Franchisor Info   Submit an online form to receive information from Party America.