Clients Wishing to Become Franchisees
CCC Is the Franchiser of TSUTAYA
Culture Convenience Club Co., Ltd. solicits corporations wishing to become TSUTAYA franchisees.
Support Tools for Franchisees
Efficient ordering system for improved turnover
Order placement often turns out to be the most difficult challenge in the rental business. Each month content providers release about 600 titles on DVD and 2,000 titles on CD. With a typical budget, a store can only afford to purchase around 10 % of the new releases.
TSUTAYA franchiser operates an "ordering agent system" for placing appropriate and effective orders for the franchisees.
System software controls inventory by date and time and analyzes store data on location traits, member demographics, and the latest product trends at the franchisee. Based on the results, video and audio buyers at headquarters place efficient orders on behalf of franchisees with a view to achieving maximize turnover.
A system to fully determine the trading area
TSUTAYA uses a unique database system called the "Area Marketing System (AMS)" to take full control of the trading area with membership cards.
By combining the population data by town and block held at CCC's nearly 1,300 existing stores, the system can calculate the number of members and estimate the sales amount for the candidate location of a new store based on standard values such as the number of members who join (as a proportion of the population), the frequency of visits, and the average customer spend in a ten-minute trading area (by foot, bicycle, and car).
Web system to quickly provide necessary information for store operation
"TSUTAYA NAVI" is a web system to quickly provide necessary information for TSUTAYA operation.
TSUTAYA NAVI supports store operations by providing information on new products and stores and know-how on store operation from TSUTAYA franchisers on a timely basis. Franchisees can also use TSUTAYA NAVI to order supplies and apply for services.
Supervisors support store operation
Supervisors (SV) go the rounds to provide instructions and support solutions for problems at stores.
CCC also holds the TSUTAYA Owners Conference, a periodic meeting of store managers and owners to explain the franchiser's strategy to franchisees.
Educational system for phased learning from new staff to managers
TSUTAYA COLLEGE - an educational institution for franchisee staff
With training rooms located near Shibuya and Osaka stations, TSUTAYA COLLEGE offers classroom lectures to transfer knowledge and skills readily usable in stores. It also organizes on-the-job training in the stores by position and in a phased manner.
A dedicated instructor educates store managers, staff members, and part-timers before a new store opens, then follows up with support after business begins.
Tools and media for multilateral sales promotion support
CCC delivers TSUTAYA CLUB MAGAZINE to TSUTAYA stores, along with POP ads for new products, posters, flags, WAVE C3 (TSUTAYA's original in-store broadcasts on cable radio) and many other promotional materials.
We also stage sales promotion activities for members through TSUTAYA online.
Investment Model and Necessary Funds
The following shows investment models for areas and sales and investment amounts by store location and by available item pattern.
*Details vary by store.
|Rental store||Full-lineup store|
|Available items||Rental items||Rental items, CDs/DVDs for sale,
books, games, secondhand items
|Store location||Near metropolitan railway station
Assumed to be located in a building
|Newly-built store assumed to be located along a suburban road|
|Gross floor area||198 to 462 m²||1,487 to 1,983 m²|
|Gross sales (monthly)||15 million yen||60 million yen|
|Total investment||110 million yen||450 million yen|
Franchise fees and loyalties
The following shows franchise fees charged by item for franchisees newly joining, and monthly royalties after joining.
*The opening reserve is spent for sending instructors.
|Franchise fee||Opening reserve||Royalty after opening|
|Rental items||3 million yen
(1.5 million yen after the second and later stores)
|0.4 million yen||5% of rental charges earned|
|CDs and DVDs for sale
|1 million yen||0.2 million yen||2% of CD sales|
(TSUTAYA BOOK NETWORK)
|0.5 million yen||0.2 million yen||1% of book sales|
|0.5 million yen||0.1 million yen||2% of sales of new games
(or 1 % for game consoles)
|0.5 million yen||0.1 million yen||3% of sales of secondhand games, CDs, and DVDs|
|Advertising contribution||-||-||1% of rental charges earned|
Development and Sales Unit, Culture Convenience Club Co., Ltd.
Phone: +81-3-6800-4720 (we accept phone calls between 10 a.m. and 6 p.m. on business days)
*The franchise agreement is available only to corporations.
*We encourage strategic dominance in some business areas in Japan.
We welcome companies willing to open up several stores in the future. Contact us for details on our business areas.