I didn't post before, as everybody else had already mentioned that Name key fobs were going to be problematical, and the market is pretty flooded.
BUT, IF you could get your friend away from names, and maybe do something and start small/unique/and area or local interest in a key fob.....Then MAY be worth your while?
Hardest part is to get your foot in the door, and goods displayed...and sounds like you have an IN.
Everybody in business has a price point in the backs of their minds though....ask your friend what he was thinking of......MAY just be a non-starter.
We had good luck here with small high end shops with a key fob design in the high end tourist towns.
To our surprise they weren't always bought as key fobs....many got bought for Zipper pull downs for everything from jackets/purses/beach bags/totes/luggage/etc.
Ocooch has scroll-saw ready .25" stock in many woods(Bloodwood sold the best), and not much outlay there. Machining is reasonable IF design and bits are right(and not too many Z lifts).
Laser is fast, but hard to beat a good dense hardwood with decent design in a pocket, or clean VCarve.
My design aren't being used right now by the people that Dad gave the company to.
Be glad to give you 3 blank fob designs(oblong ones shown) that sold well and you could do your own designs, and answer any questions you may have by e-mail if you PM me if it will help you two out?
Cheap/small enough to carry around and maybe give to owners of likely shops?
Just DON'T do something like these 3D "Small Celtic Dragon" ones I made from Michael Mezalick or you'll go batty and they'll tend to walk away
Be glad to help if this sounds interesting.