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ED September 2014

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Club Bulletin September 2014 11 www.ExoticDancer.com "The truth is, we don't make money on the licensing part of this deal, nor do we need to. That's why it's crucial that the clubs that license the Scores name are successful clubs in their market, and have the ability to offer the same level of first-class gentlemen's club entertainment that the Scores brand is known for." — Scores' COO Mark Yackow now boasts 20 licensees (clubs either owned by Scores Holding or licensees) across the country. And as their Chief Operating Officer Mark Yackow explains, they've only just begun. "We have a lineup of owners who are looking to be Scores licensees," says Yackow, noting that Scores currently has clubs in the following cities: New York, Atlantic City, Baltimore, Charlotte, NC, Chicago, Detroit, Hickory & Mooresville, NC, Jacksonville, FL, New Orleans, Savannah, GA, Tampa, West Palm Beach, Harvey, LA, Columbus, OH, Danbury, CT, Gary, IN, and the Caribbean. "The most important thing for us is, we're never a competitor with a licensee, we're a facilitator. If we don't think that by someone being licensed with us will vastly change their profit and volume, we don't allow the deal. And this approach has worked—as long as we've been licensing clubs, we've never taken a 'Scores' marquee down." Though the current Scores Holding group, which also consists of Chairman Robert Gans, Director of Acquisitions & Licensing Stephen Jaffe and others, took over the brand six years ago, it is only within the past year that they have made a strong movement toward national branding. What has enabled this bold growth more than anything, however, is that Scores asks little in the way of licensing fees. Instead, they demand that the club is profitable, successful in its market and run by a quality owner/operator. "The truth is, we don't make money on the licensing part of this deal, nor do we need to," says Yackow. "That's why it's crucial that the clubs that license the Scores name are successful clubs in their market, and have the ability to offer the same level of first-class gentlemen's club entertainment that the Scores brand is known for. But again, if they'll do the same business with or without our name, we don't do the deal. I say 'no' to deals four out of five times, for that reason." As Yackow explains, licensing the famous Scores brand name and logo for a very reasonable monthly fee has the ability to bring its licensees the name recognition that will attract new customers to a club, noting that the brand has also enjoyed national radio, television and print media exposure. Scores also offers its licensees a host of management programs to enhance the performance of a club, increase profits, help benefit from large discounts available through their national purchasing programs and work with licensees to develop new revenue streams. This includes access to experts in several fields, including recruiting and training of entertainers, managers and DJs, architectural and interior design, sales and marketing programs, PR programs and ad campaigns, hospitality training and inventory controls. Yackow understands that there may be club owners reading this story who will become skeptical and say, "All of that for minimal licensing fees? That sounds way too good to be true." "It almost is too good to be true, if you think about it," says Yackow. "But we're interested in the growth of our brand, not making money off of licensees. We have big egos, and we take great pride in our brand. We want our brand to be the best in the industry—synonymous with first-class gentlemen's club entertainment—and we want each Scores club to be the best in its market. These are mutually beneficial relationships, and that means we're going to provide anything and everything we can to make those licensees successful." Part of that "anything and everything" means creating revenue streams for their licensees, and one of those revenue streams is ScoresLive.com, which is an international, online "chat" service featuring hundreds of women who are live each day. "We invested $5 million in our international chat line, with 400 women regularly available for online 'chatting' and private online/web cam sessions," says Yackow. "Each licensee has access to this program, and it's an added revenue stream that they can take advantage of." As Yackow eludes, not every club is suitable to be a Scores club. Being located in a "major" market, however, is clearly not a prerequisite, as evidenced by the Scores licensees in Connecticut, Indiana, Ohio and elsewhere. In fact, Scores has created a separate "brand" for clubs in smaller markets, dubbed "Scores presents" (an example is Scores Presents NWI/Northwest Indiana, in Gary, IN). But no matter where a club is located, the style of ownership and management is also important when Yackow and Scores are assessing a potential licensee. Club Bulletin September 2014 11

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