Here’s a guide to the kind of people we’re looking for:
Serious first time investors need to read a comment by founder Brian Parker by clicking here.
We are very serious about choosing the right people to build our brand. If you like what you’ve seen and heard about us so far, and you’ve got the passion and determination needed to run a successful business, we’d love to hear from you. Simply complete the Expression of Interest form below. From there we will make initial contact with you to answer your questions and discuss your area of interest.
Why Invest in a License When I Could Go It Alone?
There are risks associated with anything you do in life, but there are ways to minimize your exposure such as following the lead from someone who has ‘been there and done that’ before you. The very fact that you have come to this page demonstrates that you are doing your research into various business opportunities which is great. Believe it or not many do not even do this much work, they just leap blindly into their businesses most often with disastrous consequences. Leisure based businesses can appear to be easy to set up and run, the reality is though that there is a lot of science behind running a successful leisure business and a licensed environment provides you with the necessary knowledge and assistance. Plus you will also benefit from;
- Assistance with attraction mix, equipment supplier, venue layout and lease negotiations.
- Use of proven operations and marketing systems to maximize profits and streamline expenses.
- Tapping into bulk purchase savings from suppliers and branded products and consumables.
- Becoming part of a Tabatinga brains-trust of shared knowledge and experience.
What Are The Ongoing License Charges?
Most franchise/license agreements are structured on a royalty basis which is generally a percentage of revenue earned. At Tabatinga we see this as a disincentive for the franchisee/licensee. We believe any increased effort put in at the business level which results in a financial benefit to the business owners should remain with the business owner and not be syphoned off to a remote franchisor. At Tabatinga we prefer to use a pre-set fixed monthly license fee which will entitle you to the use of all past, present and future Intellectual Property and continued guidance and support from the founders and head office staff. The license fee is calculated on a sliding scale depending on the size of the venue. Once determined, this fee is then fixed* and forms part of the license agreement. (*subject to CPI increases only).
The Tabatinga marketing system is a key feature of the business model. It has won and continues to win many business accolades and awards. More importantly though – it works! The Tabatinga marketing system is an automated funnel which communicates with customers in multiple mediums (SMS, email, letter, postcard, phone and newsletter) according to their interaction (or lack there-of) with the venue. Being systemized it is run centrally from the brand head office on behalf of each venue. All venues pay a pre-set fixed monthly marketing fee which covers all software license fees, domain name and web site hosting and maintenance service. As well as the marketing fee, all venues will pay a fixed per item charge for each item of correspondence that is sent by head office on the venue’s behalf. This allows for the large differences in the amount of communication sent out for the larger venue as opposed to a smaller one.
These fees will be disclosed and negotiated during the initial administration phase of the license arrangement.
How Much Does It Cost To Set Up?
The set up costs vary significantly from site to site due to the size of the venue and the number and type of attractions to be included. However as a guide you should expect to spend in the range of $400K to $1.2M (this does not include any building requirements). Adequate capital is critical for your success and you will need to have significant available equity for borrowing purposes.
How Much Money Will I Make?
By law franchisors are unable to provide projected revenues or make promises on profitability. Potential licensees are strongly encouraged to seek independent professional financial advice as part of their due diligence before entering into any contract. However we feel that the Tabatinga business provides the best possible model for success in the leisure industry and the head office will provide invaluable support during the planning phase to ensure that you are setting up in the right area, with an appropriate sized facility, with the correct attraction mix, laid out in the correct manner, in a venue with reasonable lease conditions, all of which have a significant impact on your businesses success and profitability.
How Long Does It Take To Get Started?
Again there are many variables here, however as a guide sites will take a minimum of 4 months to complete once administrative and financial details have been completed (which can take 2 to 3 months as well). The equipment is supplied from overseas and is made to specification for each project so it takes time to design, build, ship and install the equipment for your site.
Do I Need To Find My Own Site?
Site selection is a critical component to your businesses success. Much is being made these days about ‘bricks and mortar’ businesses losing ground to on-line businesses, fortunately our business cannot be replicated on-line but we do require large footprints which can come at a hefty rental price tag.
The Tabatinga owners have a site selection process which sees suitable sites being made available periodically. Of course you may identify a site that you feel would be appropriate and we can offer our advice, support and approval if it turns out to be suitable. Keep in mind that you may need to consider relocating to an area to own and run a site that has a greater chance of success than where you are currently living.
What Do I Look For In A Site?
A Tabatinga business will traditionally require a minimum of 600m2, but it can go as high as 2,000m2+. In smaller communities it may be possible to run a successful business from within a smaller sized facility. Look for buildings that have adequate ceiling height (about 4m in at least 200m2 of the venue). Ample off-street parking is also a requirement as parking is a significant consideration for customers. The building will also need adequate rest room facilities and a kitchen area. We have a detailed venue checklist that you can request as you progress through your journey with us.
Do I Have to Run The Business Myself?
One attractive element of the leisure industry is that it can be a fairly easy business to run once the systems are correctly in place. In these situations it’s easy for the business owner to put the auto-pilot on and kick back. But a leisure business is a business none the less, and there are many things that can and will go wrong if left unattended, especially in the early stages of the businesses growth. For this reason we expect that the licensee will be very hands on operationally at least in the initial stages, but will remain very active in the financial and administrative operations throughout the life of the business.
Should I Take on Partners To Raise the Capital & Help Run The Business?
Partnerships can be difficult even if you are partnered with a life-long friend or family member. Each party will have different skill sets, different capital raising ability, different time availability, different risk adversity and many more personal traits that impact on the partnership. Having said that a partnership that has been carefully planned can work very well to the mutual benefit of all involved. A critical process with any proposed partner relationship is to clearly define and communicate exactly what each and every partner expects to put into, and get out of, the arrangement before you start. Often people have very different expectations, and when the business is up and running it’s too late to discover this then.