Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Glass Doctor Franchise Costs (2016 FDD)

by Franchise Chatter on October 15, 2016

in Franchise Costs, Home Repairs Franchise

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Glass Doctor Photo by orbora78

Detailed Estimates of Glass Doctor Franchise Costs Based on Item 7 (Estimated Initial Investment) of Glass Doctor’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $35,000, plus $350 per 1,000 additional population over minimum

  • The Minimum Initial Franchise Fee is $35,000. You may qualify for a discount on the initial franchise fee.
  • The franchisor may agree to finance a portion of the initial franchise fee, depending on your creditworthiness, the collateral that you have available, and the franchisor’s then-current financing policies. Monthly payments depend on the amount financed.
  • A territory will generally contain a population ranging from 100,000 to 1,500,000. Territory is priced at $350 per 1,000 population. A larger territory may be allowed under certain circumstances (i.e. densely populated urban areas, or if a high percentage of the territory is impoverished).

2.  Vehicle:  $3,500 to $60,000

  • You must purchase vehicles that meet the franchisor’s specifications as set forth in the Manuals. Each vehicle must have the Marks professionally applied as the franchisor specifies before the vehicle is put into service.
  • The estimated low cost reflects the cost of having the Marks applied to an existing vehicle which meets the franchisor’s standards. The estimated high cost reflects the purchase of a vehicle meeting the franchisor’s standards plus having the Marks applied.

3.  Equipment, Supplies, Inventory, and Business Start-Up Package:  $20,000 to $55,000

  • If you already own an existing business similar to the franchise, you may own much of the necessary equipment, supplies, and inventory to begin the operation of your franchise.
  • The low estimate assumes that you already own an existing business similar to the franchise. The high estimate assumes you do not own an existing business, and includes office and field equipment, inventory, and supplies needed to equip your franchise in accordance with the franchisor’s standards.
  • Both estimates include the initial cost of the Software System, auto and flat glass inventory, office equipment, shop equipment, shop fixtures and shop materials, and printed material (business cards, stationery, invoices, brochures, marketing materials, service agreements, etc.).
  • Both estimates also include the required business start-up package. The package includes items which will help you get started with the business, including business cards, letterhead, invoices, brochures, logo items, some additional training and advertising materials, and required software. You are required to purchase the business start-up package from a vendor the franchisor specifies.

4.  Insurance:  $2,000 to $6,000

5.  Advertising, Promotional, and Local Marketing Spending for Marketing Start-Up Phase:  $7,500 to $20,000

  • The franchisor reserves the right to require you to spend annually (the “Minimum Local Marketing
    Spending”) equal to 5% of your Gross Sales for the previous year. The amount you spend on Minimum Local Marketing Spending is in addition to any MAP (Marketing, Advertising, and Promotion) Fees you must pay.

6.  Training, Travel, Lodging, and Food:  $2,500 to $5,000

  • You should allow at least the minimum amount stated above for travel, lodging, food, and other miscellaneous living expenses incurred during training.
  • For additional persons, the franchisor will provide training on a space-available basis. However, the estimate does not include additional costs and expenses if you request training for additional persons.

7.  Deposits, Permits, and Licenses:  $2,000 to $5,000

  • The franchisor does not require any prepaid deposits, permits, or licenses before you begin the operation of your Business, but your particular locality may require a permit or license to perform glazing services or have other business licensing requirements.

8.  Professional Fees:  $300 to $5,000

  • These are estimates for fees that will be charged by your attorney to review the franchise agreement and other documents, to advise you, and to incorporate a business entity on your behalf, if desired. This estimate also includes fees charged by an accountant and/or financial advisor.

9.  Additional Funds for 3 Months:  $35,000 to $75,000

  • The franchisor recommends that you have additional funds available during the start-up phase of your franchise. These amounts are its estimates of the amount needed to cover your expenses for a 3-month period from the date you open for business. The franchisor recommends that you have funds available for a longer time period and 3 months should be viewed as the minimum time you should plan for.

10.  Real Estate:  $4,000 to $15,000

  • If the franchisor approves, you may open a service center that meets the franchisor’s specifications (“franchise location”) immediately after you complete Phase I Training and you must open a franchise location within 30 days after completion of Phase II Training or at an earlier date the franchisor specifies.
  • You may already have suitable premises for the franchise location, which must be at least 1,200 to 4,500 square feet in size. The typical Glass Doctor franchised business has 3,000 square feet. The franchisor recommends that your franchise location be in a centrally located, commercial district.

11.  Totals:  $111,800 to $281,000, plus any additional franchisee fee

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