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Earnings Claims of Top Franchises Revealed

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Considering a UBREAKIFIX Franchise? Don’t Overlook These 25 Important Franchise Fees

by Franchise Chatter on October 27, 2017

in Franchise Fees, Miscellaneous Service Franchises



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a UBREAKIFIX franchise, don’t get blindsided by these 25 important franchise fees (from the initial franchise fee, to the royalty fee, to 23 other fees found in Items 5 and 6 of UBREAKIFIX’s 2017 FDD).

1.  Initial Franchise Fee:  $40,000



2.  Initial Training Fee:  $12,500

  • You must pay a $40,000 lump sum initial franchise fee and a $12,500 initial training fee when you sign your first Franchise Agreement. The initial franchise fee and initial training fee are not refundable under any circumstances.

3.  Initial Development Fee:  $12,500 multiplied by the number of UBREAKIFIX Stores that you must open (excluding the first UBREAKIFIX Store)

  • When you sign the franchisor’s current form of Area Development Agreement, you must pay the franchisor an initial development fee equal to $12,500 multiplied by the number of UBREAKIFIX Stores that you must open (excluding the first UBREAKIFIX Store).
  • You will concurrently sign your first Franchise Agreement and pay $40,000 representing the initial franchise fee and $12,500 representing the initial training fee for your first Franchise Agreement.

4.  Continuing Royalty:  7% of Non-Recommerce Revenue; and 4% of Recommerce Revenue

  • Due Date:  Payable electronically by the end of each Accounting Period during the term of the Franchise Agreement.
  • “Accounting Period” means a calendar month.
  • The franchisor’s Device Recommerce Program involves your purchase of used mobile and other electronic devices for resale, and “Recommerce Revenue” is all revenue received or receivable as payment for any and all electronic devices sold by you to any party (other than the franchisor or its affiliates) pursuant to the Device Recommerce Program, during each Accounting Period of the Term.
  • “Non-Recommerce Revenue” means Gross Sales during each Accounting Period, other than Recommerce Revenue for such Accounting Period.

5.  Advertising Fee:  up to 2% of Gross Sales, as determined by the franchisor

  • Due Date:  Same as Continuing Royalty.
  • The advertising contribution will be in addition to the 2% of Gross Sales that you must spend on local advertising under Section 8.2 of your Franchise Agreement.
  • As of the date of the 2017 Disclosure Document, you must contribute $150 for your first and $100 for each additional UBREAKIFIX Store in the same market (as determined by the franchisor), which the franchisor presently uses to cover the cost of providing you with search engine optimization (SEO) guidance and assistance, including to enhance the effectiveness of Google AdWords pay-per-click advertising.

6.  Advertising Cooperatives (“Co-op”):  your minimum contributions to the advertising cooperative will be determined by the franchisor

  • Due Date:  As determined by the Co-op.
  • The franchisor does not currently do so, however if it does so in the future, you must participate in any advertising Co-op for the region in which your UBREAKIFIX Store is located.

7.  National Account Administrative Fee:  up to 5% of Gross Sales as determined by the franchisor



  • Due Date:  Same as Continuing Royalty.
  • The franchisor may charge you an administrative fee, which shall not exceed 5% of your Gross Sales resulting from performance of services to National Accounts.
  • As of the date of the 2017 Disclosure Document, the franchisor has not established any National Accounts.

8.  Internet Referral Source Administrative Fee:  an amount which will not exceed 5% of your Gross Sales resulting from performance of services to customers from Internet Referral Sources

  • Due Date:  Upon demand.
  • The franchisor does not currently do so, however it may provide a centralized billing system, dispatch service, and/or other systems related to the administration or services of leads from Internet Referral Sources, and it may charge you an administrative fee, which shall not exceed 5% of your Gross Sales resulting from performance of services to customers from Internet Referral Sources.

9.  Technology and Customer Support Fee:  1% of Gross Sales during the preceding Accounting Period

  • Due Date:  Same as Continuing Royalty.

10.  On Site Opening Assistance:  the franchisor’s out-of-pocket expenses

  • Due Date:  Upon demand.
  • The franchisor will provide the On-Site Training at no additional charge; provided, however, that if it determines in its reasonable judgment that more than 3 weeks of on-site training is necessary, you must reimburse the franchisor for all travel, living, compensation, and other expenses it incurs as a result of extending the On-Site Training, and at its election, a per diem training charge at its then-current rates.

11.  New Hire Training Device Kits:  $500 to $2,500 depending on whether the Kit is rented or purchased

  • Due Date:  Upon demand.
  • The franchisor makes available a training device kit intended for you to use after the Initial Training Program to train your future new hires via the franchisor’s New Hire Training – Live Stream program.

12.  Additional Training and Assistance:  the franchisor’s then-current charge, currently $100 per person per day

  • Due Date:  Prior to beginning of training.
  • The initial training fee covers the initial training program for up to 3 persons. The franchisor may charge a fee for any additional personnel that attend the initial training program.
  • In addition to any training fee, you must pay all transportation costs, food, lodging, and similar costs incurred in connection with attendance at any additional training courses.

13.  Transfer/Assignment:  10% of the franchisor’s then-current initial franchise fee, plus its out-of-pocket costs associated with the transfer/assignment, including attorneys’ fees (the amount of which will vary depending on the circumstances, which the franchisor does not expect to exceed $1,500)



  • Due Date:  Upon submission of your request to transfer or assign.
  • Payable when you transfer your franchise or upon any “Assignment” as defined in the Franchise Agreement.
  • No charge if franchise is transferred to an entity which you control, but you must reimburse the franchisor for its out-of-pocket costs (the amount of which will vary depending on the circumstances, which the franchisor does not expect to exceed $1,500).

14.  Audit:  cost of audit, plus interest on the underpayment at the highest rate allowable by law (not to exceed 18%)

  • Due Date:  Upon demand.
  • You must pay the cost of the audit if the audit shows an under-reporting or under-recording of 2% or more.
  • If the audit shows an under-reporting or under-recording error of 5% percent or more, the franchisor, in addition to any other rights and remedies it may have, has the right to terminate the Franchise Agreement.

15.  Late Fee:  interest of 18% per annum, or the highest interest rate allowable by law, on any unpaid amounts

  • Due Date:  Upon demand.
  • Due only if you are late in paying any amounts owed to the franchisor.

16.  Charges for Unpaid Checks, Drafts, Electronic Payments:  the franchisor’s costs and expenses arising from the non-payment, including bank fees in the amount of at least $50 and other related fees incurred by the franchisor, subject to limitations and restrictions under applicable law to the contrary

  • Due Date:  Upon demand.
  • Payable only if any check, draft, electronic or other payment is unpaid because of insufficient funds or otherwise.

17.  Renewal Fee:  10% of the franchisor’s then-current initial franchise fee

  • Due Date:  Upon signing a successor Franchise Agreement.

18.  Supplier Review Costs:  costs of review of application and inspection, currently $100

  • Due Date:  Upon demand.
  • You or your proposed Supplier must pay the franchisor in advance (or if the franchisor requests, reimburse it) its reasonably anticipated costs to review the Supplier’s application and all current and future reasonable costs and expenses, to inspect and audit the Suppliers’ facilities, equipment, and products, and all product testing costs paid by the franchisor to third parties.

19.  Insurance:  cost of insurance, plus the franchisor’s costs to obtain the insurance for you; currently approximately $1,500 annually

  • Due Date:  Upon demand.
  • If you do not obtain and maintain the requisite insurance coverage, the franchisor may, at its option, purchase the insurance for you and you must pay it the premiums and its costs to obtain the insurance, which it estimates will cost approximately $1,500 per year.

20.  Interest on Financing of Initial Franchise Fee:  up to 6% per annum

  • Due Date:  Monthly in accordance with your Secured Promissory Note.
  • Payable only if the franchisor finances part of your initial franchise fee as described in Item 10.

21.  Email Account Fee:  currently, $100 yearly per email account, but subject to change

  • Due Date:  Upon demand.
  • You must also maintain a functioning e-mail address for your Store, on its outsourced web hosting service. The franchisor reserves the right to require you to reimburse it for its actual costs associated with this service.

22.  Site Review Fees:  currently, between $0 and $1,000

  • Due Date:  Upon demand.
  • The franchisor will review one proposed site at no charge. However, for the second site that it reviews, and for each additional site, you must reimburse the franchisor for all costs and expenses that it incurs in reviewing the site.
  • These figures include the franchisor’s expenses for travel, food, and lodging in connection with each on-site review.

23.  Equipment, Tools, Parts, Supplies, and Products Inventory:  then-current published wholesale prices for each particular item

  • Due Date:  Upon shipment.
  • Your UBREAKIFIX Store may only offer to the public the products and services the franchisor approves.
  • Before you open your UBREAKIFIX Store, you must purchase a pre-opening inventory of equipment, tools, and supplies needed to begin business, for a total cost of between $11,800 and $16,600.
  • As they are depleted, and as new products come to market that require your repair services, you must replenish your inventory as needed to meet reasonably anticipated consumer demand for your business. The items include things such as glass screens for iPods, iPhones, iPads, and other tools and parts for repairing computers, smart phones, tablets, gaming consoles, and other electronic equipment.

24.  Promotional Campaigns:  not to exceed 103% of the franchisor’s actual cost

  • Due Date:  Upon demand.
  • The franchisor may establish and conduct promotional campaigns on a national or regional basis, which may, by way of illustration and not limitation, promote particular products or marketing themes.
  • You and each Co-op Advertising Region, if any, must participate in these promotional campaigns under the terms and conditions the franchisor may establish.
  • Your participation may include purchasing point-of-sale advertising material, posters, flyers, product displays, and other promotional material (unless provided at no charge through the Advertising Fund).

25.  Extension Program:  $1,000 for each of the first 6 months of extension, and $1,500 per month for months 7-12

  • Due Date:  Payable on a monthly basis.
  • If you are in good faith using your best efforts to commence operations within 9 months of signing the Franchise or Area Development Agreement, then the franchisor may, upon written request and execution of its then-current withdrawal authorization form, permit you to extend, for up to 12 months, the date by which you must commence operating your UBREAKIFIX Store.

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