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Private franchise libraries will be launched in Shanghai, today's Youth Daily quoted organizers of the fifth International Franchise Forum and Expo as saying.
The event opened yesterday in the city.
The franchise library project wasn't featured at the event, but it will be carried out in the city when appropriate individual investors are sought to join the franchise scheme, the forum's organizers said.
The existing libraries in Shanghai are run by the state.
Initial investment in the library is expected at 450,000 yuan (US$54,414), according to the organizers, including 350,000 yuan for computers, books, bookshelves and security equipment. Cost of rent and decoration will be around 100,000 yuan.
Leasing books will be a key source of income for the library, analysts pointed out.
Taking Shanghai Library, the city's largest library, for an example, they said its revenue from the rental business records are some tens of million yuan each year, and the yield rate in this sector is near 30 percent.
Training classes and forums are areas where libraries generate income, the analysts noted.
Optimistic about the business, they expected investors might recover their input in one year if they run the libraries smoothly.
(eastday,com November 13, 2002)
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