Sticker Vending Franchise... thoughts

[roliveri]

I am in the ATM business and no have other experience in vending.  I recently came across a Franchise while listening to a Passive Income podcast called that markets sticker vending machines to schools.  Their business model is to place sticker machines in Schools that vend regular stickers along with school mascot stickers.  The benefit to the school is it is positioned as a fundraiser for them as they get some of the proceeds.  I think it's around 25%.  

I do not know what the Franchise Royalties are yet, but I have phone call set with them in two weeks.  

I know you have to vend a lot of stickers to make money.  Especially if you are giving up 25% to the school and some to the Franchise.  Perhaps schools have enough volume to make it profitable for everyone.  

Does anyone have any experience, thoughts, or opinions on this business model?

[rodney69]

25% isn't bad.  I've heard of it,  but not familiar with it.  

If they guarantee with a contract for a long enough time,  it might be.  I just don't thunk there would be longevity in it. 

 

[musser]

First, you by yourself can make an agreement with a school to market. You do not need some scammy franchise deal. Second, I know a couple of people that have done this with mediocre results. I once had some sticker machines at schools. It really turns out to be very political with all the people involved, students, administration, teachers, parents, it ended up impossible to merchandise so that someone wasn't offended. Stay away from it,

Especially stay away from ANY so called franchise deal in bulk vending. There is sub contracting from larger operators, I sub contract from others and also sub contract some of my business, its how you are able to service some larger accounts. But, again, no franchise.

[roliveri]

Thank you for your insight.  I do agree this for whatever reason can become political.  I told my wife I was researching this who is a teacher at a K-8 school.  She immediately said she hated it and would not want sticker vending machines at her school.  

As for Franchises, I think there are good ones and bad ones. I have two businesses that both have franchise models, but I chose to do it on my own which I don't regret.    

Thank you for responding.

[bulknoob]

I called one of their operators in my region and he was having a much harder than expected time placing the machines. He said SSV was looking at ways to market the stickers to students; that’s what killed it for me. I opted not to look into it further.