Adam & Eve Stores Franchise Opportunity

THE ADAM & EVE BRAND

With nearly four decades of industry success, Adam & Eve has built a brand with staying power and respect. Our award-winning film division releases more than 100 titles each year and our branded product lines are known for their quality and afford-ability. Our foothold in the industry allows us to continually expand our reach, building credibility through variety and accessibility.

Our franchisees enjoy the benefits of partnering with a brand leader, knowing that the Adam & Eve name will generate demand for their business. They can count on a level of brand standardization - from store lay-outs to marketing presentations - that puts their customers at ease, guaranteeing their Adam & Eve experience will be consistent across all channels.

HISTORY OF SUCCESS

Adam & Eve has a long history of successful firsts. Nearly four decades ago, we became the first mail-order business of our type in the U.S. Since then, we have built a loyal following of more than ten million catalog and Internet customers who look to Adam& Eve for the widest variety of high-quality, tasteful products.

Nationally recognized, the Adam & Eve brand is respected for bringing a new level of class and acceptance to its industry. We've worked hard to meet the desires of a growing range of customers, stocking over 13,000 items, from apparel and DVDs to our own signature line of products. Our products are reviewed by trained professionals to ensure they meet both our industry standards and our customers' standards of quality. These are the principles that guide our diverse staff of more than 350 men and women, based in Hillsborough, North Carolina.

Our commitment to our employees, community and customers is paramount to our success. As one of the largest private employers in Orange County, North Carolina, we strive to provide a welcoming, family-like work environment. Selected as business of the year, Adam & Eve's public service projects span a variety of international charities, including DKT International, a non-profit offshoot of Adam & Eve. DKT is considered one of the top family planning and AIDS prevention organizations in the world, providing millions of people in Africa, Asia and Latin America with access to affordable population planning products and services.

Adam & Eve has a history of successful firsts, establishing the first adult mail-order business in the U.S., nearly four decades ago. Since then, we have built a loyal following of more than ten million catalog and Internet customers who look to us for the widest variety of high-quality, tasteful products.

With Adam & Eve's turn-key support and brand recognition, franchisees are able to get their businesses up and running quickly-capitalizing on a broad base of products with multiple revenue streams and high profit margins.

OUR FRANCHISEES

Adam & Eve franchisees come from all walks of life, but they share a common set of goals. They're everyday, hard-working people invested in achieving success on their own terms. They may have been corporate executives looking for a change or couples seeking a shared opportunity. They don't necessarily have special degrees, prior experience or training, but they have a desire to invest in a business built on proven success and unlimited revenue potential.

Our franchisees appreciate the structure and support that come with owning an Adam & Eve store. They join a network of dedicated professionals who want to see them succeed. From comprehensive training and marketing assistance to access to a network of approved vendors and negotiated pricing, our franchisees receive support for the life of their business.

Adam & Eve franchisees are positioned for success. They benefit from access to a national network of preferred vendors, offering quick turnaround times, negotiated pricing discounts and a vast selection of products with the potential for high profit margins.

EXPLOSIVE INDUSTRY

Fueled by a growing acceptance in mainstream society, the adult industry has become a multi-billion dollar business. An expanding range of customers - including more women, couples, bachelor and bachelorette partygoers - feel more comfortable exploring romance and erotica, thereby increasing the demand for access to a wide variety of products.

Adam & Eve offers customers an upscale atmosphere to explore romance and erotica. Bright, warm, and inviting, they offer customers a refined alternative to shopping online.

TIMES HAVE CHANGED

In recent years, attitudes about sex and erotica have changed, breaking down the taboos associated with the adult industry. As more women and couples feel empowered to participate and express themselves, the face of the business is changing accordingly.

The days of forced discretion have subsided. Sex-positive products and services are emerging in more mainstream, socially-acceptable outlets, from regional t.v. shows and publications to upscale retail stores.

Adam & Eve is sensitive to the changes in the marketplace. We offer a wide variety of products that appeal to our expanding customer base of women and couples, in a warm, welcoming retail setting.

TRAINING & SUPPORT

While our franchisees are in business for themselves, they're not by themselves. We back them up with training and support for the lifetime of their business. We respect the commitment they've made and, in turn, are committed to their success.

Training begins at our headquarters - covering all aspects of the business, from operations and customer service to inventory management and merchandising. We continue with hands-on training in one of our stores and then follow through by helping each franchisee set up their own store, making sure each location meets our proven criteria for success and that store personnel are fully trained. We'll help make sure the store is properly stocked and merchandised to promote a positive customer experience and maximize sales.

Our support doesn't stop there though. We offer ongoing training, store visits, access to national conventions, and newsletter and website updates. Above all, franchisees join a network of like-minded entrepreneurs focused on building their business and the Adam & Eve brand.

Location is everything - Our site selection experts will assist in finding the optimum location for your Adam& Eve store.

We'll help you in researching market demographics, lease information, local zoning requirements, ordinances and more. The result: an exclusive business in a high-traffic, revenue-generating community.

INTERIOR DESIGN

Each Adam & Eve store is an extension of our brand - invoking a sense of quality, class and comfort. The floor plans have been carefully designed to optimize our customers' shopping experience, while the interior finishes and lighting cast a warm, inviting welcome. Most store fixtures are on casters, allowing staff the flexibility to feature new products and make room for promotional opportunities and events. Planograms make it easy to manage shelf space, while POP materials draw attention to store specials and crowd pleasers.

As the industry evolves, our merchandising and in-store product selection will advance to meet the changing needs and desires of our customers.

MARKETING

While it takes time to build a customer base, our franchisees find that they're ahead of the curve with the backing of the Adam & Eve brand. As the leader in the adult industry, we have succeeded in targeting an ever-expanding customer base, fostering brand loyalty and new and repeat business. Our franchisees gain access to these proven tactics, easing their transition from a new to a burgeoning business.

We help our franchisees develop an effective marketing mix - from print ads to radio spots - and we assess which local marketing channels yield the best return on their investment.

Adam & Eve contract stars are available for on site appearances to promote a store opening or special event. Their presence has proven to be one of our most successful demand-generation activities, attracting a diverse array of customers.

All franchisees have access to the following marketing materials:

• Marketing manual
• Annual Advertising Guide
• Stock images
• Professionally-produced commercials
• Point Of Purchase (POP) materials
• Adam & Eve star appearances
• Signage

FRANCHISE OWNERSHIP

If you've ever dreamed of owning your own business, you're not alone. The franchise industry is at an all-time high, with entrepreneurs seeking a structure that yields financial independence and lifetime support. There's no need for a specialized degree or industry acumen. By choosing to invest in a franchise, business owners get up and running quickly with a proven business model, brand recognition and turn-key training and support. Adam & Eve franchisees enjoy the added benefit of exclusive territories and access to approved vendors and products with higher profit margins than those found in many other retail ventures.

Why reinvent the wheel? Make your mark in a multi-billion dollar industry, ripe for committed entrepreneurs who want more control over their financial futures. Minimize your risk and maximize your rewards. The choice is yours.