PICTURE-PERFECT PACKAGE

(Stoney Creek, ON)——The aspirations of his seven-year-old nephew led Joe Bruno to enter the youth sports photography business in 1987 when he was only 21 years old and in his second year of college.

An aspiring entrepreneur, Bruno was studying business at McMaster University in Hamilton, Ont., at the time. He was spending New Year’s Day with family and friends, playing a card-toss game with his nephew’s hockey trading cards when the youngster said, “Uncle Joe, one day I’m going to be on one of these cards.”

Six months later, Bruno was in the youth sports photography business, having started the venture from his bedroom in his parent’s house in suburban Toronto. He was not only turning out youth trading cards for a variety of sports, but also serving as a full-service photo provider for youth sports organizations, providing high-quality individual and team portraits and other innovative products.

Today, Future Stars Sports Photography is one of North America’s premier, franchised sports photography services, providing youth sports organizations with high-quality, innovative photo products and unparalleled service. It is complemented by Pegasus School Images, launched by Bruno in 1999. Recognized for its superior product line and comprehensive school program, Pegasus has become one of the fastest-growing school picture companies in North America.

Photographing more than 250,000 children in the United States and Canada each year, Future Stars Sports Photography and Pegasus School Images not only combine to provide unmatched quality and service for customers, but the business models offer unique opportunities to prospective franchisees. They can choose to become a Future Stars franchisee and become involved in the exciting sports market or they can choose the Pegasus model if they are interested in school photography. Of course there is great synergy if they choose both brands because it provides dual-revenue streams that allow consistent year-round sales in two fast-growing industries. All photography services are digitally based.

“The school picture market is huge and youth sports photography has really taken off in the last 10 years. There is a healthy market for both concepts,” said the 40-year-old Bruno, who serves as president of both companies.

“With three dual U.S. locations in Ohio, Arizona and Nebraska and 12 Canadian franchisees – the majority in Ontario – Future Stars and Pegasus are targeting more aggressive growth in 2007, projecting the addition of six Future Stars franchises and four Pegasus School Images in the U.S. In Canada, 2007 plans include adding 3 more Future Stars franchises and 5 more Pegasus School Images. By the end of 2010, Bruno foresees 50 franchises in the United States and 20 in Canada.

The estimated initial investment for a Future Stars franchise or a Pegasus franchise ranges between $25,600 and $49,500, and includes a franchisee fee determined by the number of 5- to 17-year-old children in the franchisee’s territory. A typical territory has a population of between 50,000 and 100,000 children ages 5-17. A territory with 50,000 children ages 5-17 would have a franchise fee of $12,500. A franchisee can purchase a combined Future Stars / Pegasus franchise and get a discount on the combined franchise fee.

One person can easily launch the businesses from home with additional space and employee requirements addressed as the business grows. Future Stars can be operated as a part-time business, as most shoots occur during the evenings and weekends. Pegasus and a combined Future Stars / Pegasus must be operated as a full-time business. The concept is suitable for both small and large markets.

“Our concept is very affordable compared to most franchise opportunities without sacrificing the potential to make a lot of money,” said Bruno. “It can be scaled upward very quickly for highly motivated franchisees.”

Instead of paying royalties, franchisees participate in a revenue-sharing program based on each franchisee’s sales of products and services. Various photography programs have different revenue-sharing percentages ranging from 20 to 75 percent.

Future Stars / Pegasus corporate headquarters’ assumes all customer service responsibilities with an in-house centralized, toll-free, 800-customer-service support team as well as a 24-hour online customer service program. The production facility handles the data entry of all orders, giving franchisees time to focus on the components most important to building their business – acquiring customers and taking photos.

There’s one other overriding factor that points to the strong growth opportunities of Future Stars / Pegasus both in the United States and Canada. The businesses are virtually recession-proof. If you doubt that argument, just walk into the home of any family with school-age children and see what is on the walls and tables and stashed away in drawers.