Growth Opportunities and Potential

The nice thing about this business model is that it can be kept very small and still work. One person can be home based and work part time having a great time and making extra income.  A person desiring more can contract with operators and add more characters to the line up.  A percentage fee split with the operator can be a nice arrangement for the owner and the operator.

Build and Sell Characters

Another possibility is to set up a small manufacturing facility and build standard and custom characters for sale to others. Start up requirements would not be overwhelming. Many parts, motors, servos, and puppets are contracted and built by others.  Someone who is adept at electronics and enjoys hands on building would be a great candidate. Due to the custom and professional nature of these products, pricing and margin would be good. A small start up would probably require 1000-1500 feet of space. 

Franchising

Now this really gets exciting for someone who is really talented, ambitious and wants to build a large very successful business. This would require the ability to manufacture and service characters as outlined above. In addition the development and servicing of the marketing arm to care for and grow franchisees.  This business model is ideal for a franchise, and there is virtually nothing like it currently available. I can easily envision 500 Kool Characters with franchises licensed across the country.   A typical franchise charges in excess of $25,000 just for a territory and use of name. In addition they purchase start packages and pay ongoing royalties and fees.  Regardless of the state of the economy businesses still need to advertise and market.  

Consulting

I have many years of experience with franchising, business start ups and finance. I  am available for further consulting if someone desires to take their business to a higher level of manufacturer or franchising.