Sunday, July 20, 2003
Copyright © Las Vegas Review-Journal

Fireworks franchisor foresees profit potential for pyrotechnics purveyors

Dave Foster and Kevin Frey from Lantis Fireworks work inside a fireworks bunker. Lantis Fireworks President David Macklin said profit potential is high for franchisees in his business. Photo by Christine H. Wetzel.

Franchising offers explosive opportunity in today's economy, and Salt Lake City-based Lantis Fireworks could be a sparkling example.

For a startup investment of about $180,000, which includes the initial $50,000 franchise fee and some inventory, entrepreneurs can make a projected $300,000 to $400,000 in annual revenue after a few years in business, said David Macklin, president of Lantis Franchising.

Franchisees pay a monthly royalty of 6 percent of gross sales.

With offices in Las Vegas (9101 W. Sahara Ave.), Reno, Phoenix and Denver, Lantis is just beginning to seek franchisees in other cities.

Macklin admits that fireworks franchising is different from fast-food eateries, business and home services and other popular franchises, but he has confidence in the concept.

"It'll work because there are so few competitors in this industry," he said. "And it'll work because of the varying laws and regulations that pertain to each separate county and state.

"It's very difficult for a company to be based in, let's say, Dallas, and for them to keep up with the speed of the local regulations in Las Vegas. If you're not in a local market, it's hard to keep in touch, but our franchises will have that covered."

Macklin was a pyrotechnician in his hometown of Brisbane, Australia, igniting shows for big-name concerts, and said regulations are less stringent there. As a result, competition abounds.

He joined about three years ago and put together a franchising strategy with Ken Lantis, who had taken his father's business from selling at fireworks stands to selling for elaborate fireworks displays.

"We'll probably be in 40 to 50 states. Canada's also certainly a good market for what we do," Macklin said.

Fourth of July is by far the most profitable day for Lantis, followed by New Year's Eve. But the company also sells to corporate events, concerts, sporting events, community fairs, weddings and high school homecomings.

There is no typical store, so the business can be based out of someone's home, with the fireworks stored elsewhere according to local ordinances.

Macklin said franchisees don't need previous fireworks experience.

Lantis will put them through a rigorous four-week training program, teaching them how to navigate the maze of federal regulations set by such organizations as Alcohol Tobacco and Firearms, Occupational Safety and Health Administration and Depart of Transportation.

Because of the inherent dangers of the business, Macklin said the ideal franchisee is "not a kid fresh out of college," but someone perhaps in their 40s.

"You want someone with a large degree of common sense, some world experience, someone who knows what it takes to make a client happy," he said. "We have to deal with a lot of bureaucracy and you have to be able to work your way through that."