If you are considering a TeamLogic IT franchise, don’t get blindsided by these 14 important franchise fees (from the initial franchise fee, to the royalty fee, to 12 other fees found in Items 5 and 6 of TeamLogic IT’s 2018 FDD).
1. Initial Franchise Fee: $30,000 to $45,000
- You must pay an Initial Franchise Fee of $45,000 payable at the time you sign the Franchise Agreement.
- If you qualify for a VetFran discount, the Initial Franchise Fee is $40,000.
- The Initial Franchise Fee covers training, the fee for training for up to 2 people, 1 hotel room, and transportation for 2 to attend training.
- This fee is nonrefundable unless you do not satisfactorily complete the initial training, in which case TeamLogic IT will refund your Initial Franchise Fee, less its direct costs associated with the franchise, which may range between $2,500 and $38,000.
- You may purchase additional TeamLogic IT franchises for the Initial Franchise Fee of $30,000.
- You must obtain TeamLogic IT’s prior written approval and sign a new, then-current Franchise Agreement for an additional TeamLogic IT franchise.
- You must change the term of any pre-existing Franchise Agreements to be co-terminus with your new Franchise Agreement for the additional TeamLogic IT franchise.
- In order to purchase additional franchises, you must not be in default of your existing Franchise Agreement.
- If you are converting your independent information technology business into a TeamLogic IT franchise, your Initial Franchise Fee is $45,000.
2. Continuing Franchise Fees: greater of 7% of Gross Sales or monthly minimum
- Due Date: Monthly; collected electronically by TeamLogic IT.
- Subject to monthly minimums on combined Continuing Franchise Fees and System Watch IT Managed Services.
3. Advertising: greater of 1.2% of Gross Sales or $200 per month
- Due Date: Monthly; collected electronically by TeamLogic IT.
4. Marketing: minimum, $2,000
- Due Date: Monthly; paid to various vendors.
- After the first 12-month Marketing Program, you are required to spend a minimum of $2,000 per month on local advertising.
5. Help Desk Service Fee: $1,200 (subject to change by vendor)
- Due Date: One-time set up/on-boarding fee.
- One time set-up fee, if no lapse in use.
6. System Watch IT Managed Services Fees for RMM (Remote Monitoring Management) Feature: RMM fees range from $6 down to $3 per agent, per month, depending on volume level, subject to change
- Due Date: Monthly; collected electronically by TeamLogic IT.
- You must maintain System Watch IT managed services, specifically RMM agents, on at least 3 computers in your Business.
7. Additional Training Fee: currently $1,000 per person, subject to change
- Due Date: At time of additional training.
- Payable if more than 2 people attend Initial Training; you must also pay travel, hotel, and meals for additional trainee(s).
8. Multi-Factor Authentication Tool: $10 monthly
- Due Date: Monthly; collected electronically by TeamLogic IT.
- Utilized to remotely assess your clients’ network.
9. Software Fees: currently, $2,100 to $3,500 per year, subject to change
- Due Date: Monthly/Annually; portion payable to TeamLogic IT is collected electronically.
- Payable to obtain various software programs; a portion is payable to TeamLogic IT.
10. Email Hosting: ranges from $4.95 to $9.95 per email address, per month, subject to change
- Due Date: Monthly.
- Payable to approved outside vendor.
11. Transfer Fee: the then-current transfer fee being charged the year you transfer
- Due Date: Before consummation of transfer.
- Payable instead of the Initial Franchise Fee.
12. Audit Fee: cost of audit
- Due Date: Upon demand.
- You must pay only if audit shows an understatement greater than 2% of Gross Sales for any 2-month period.
13. Interest: California Judgment Rate (currently 10%) or maximum rate permitted by applicable law
- Due Date: Upon demand.
- Payable on overdue amounts.
14. Renewal Fee: $2,000
- Due Date: Upon renewal.
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