Updated November 26, 2019.

If you are considering a Budget Blinds franchise, don’t get blindsided by these 18 important franchise fees (from the initial franchise fee, to the royalty fee, to 16 other fees found in Items 5 and 6 of Budget Blinds’ 2019 FDD).

1.  Initial Franchise Fee:  $19,950

• You will pay Budget Blinds an Initial Franchise Fee of $19,950 when you sign the Franchise Agreement for your first Territory. There is no Initial Franchise Fee under a subsequent Franchise Agreement.

2.  Initial Territory Fee:  $55,000 to $70,000

• If you are purchasing your franchise from Budget Blinds (rather than from an existing franchisee) and you are not a veteran, active service member, or spouse of a veteran or active service member of the United States Armed Forces, you will also pay Budget Blinds an Initial Territory Fee of $70,000 for the Territory you obtain under your first Franchise Agreement.

• If you are purchasing your franchise from Budget Blinds (rather than from an existing franchisee) and are a veteran, active service member, or spouse of a veteran or active service member of the United States Armed Forces, you will pay Budget Blinds a discounted Initial Territory Fee of $55,000.

3.  Additional Territory Fee:  $60,000 or then-current Initial Territory Fee

• If you enter into a second Franchise Agreement for a second Territory at the same time, the Additional Territory Fee will be $60,000. Otherwise, for any subsequent Franchise Agreement and Territory, the Additional Territory Fee will be equal to the then-current Initial Territory Fee.

• Under the International Franchise Association’s VetFran program, Budget Blinds discounts the Initial Territory Fee by $15,000 to new franchisees who are honorably-discharged veterans of the United States Armed Forces, active service members, and their respective spouses. Apart from these discounts, the Initial Franchise Fee, Initial Territory Fee, and Additional Territory Fees are uniform for all franchises currently being granted.

4.  Deposit Fee:  $10,000 for a single Territory or $20,000 for two Territories reserved simultaneously

• If you are preparing to sign your first Franchise Agreement and you wish to reserve an assigned Territory for a brief specified term (usually 60 days or less) before you sign the Franchise Agreement, you may sign a Deposit Receipt and pay a “Deposit Fee” of $10,000 for a single Territory or $20,000 for two Territories reserved simultaneously.

• If you already own a Budget Blinds Franchised Business, you may not reserve an additional Territory through payment of a Deposit Fee.

• If you pay a Deposit Fee and later enter into a Franchise Agreement, the Deposit Fee is fully applicable against the Territory Fee under the Franchise Agreement.

• The Deposit Fee is uniform as to all franchises currently being granted.

• Budget Blinds will generally not grant more than two Territories to a single franchisee unless the franchisee submits a business plan that shows, in Budget Blinds’ sole judgment, that the franchisee has the ability to properly provide service within all Territories to be acquired.

5.  Royalty (Monthly Payment): $300 for months 1-6; $700 for months 7-12; $1,100 for months 13-24; $1,500 from then on

• Due Date:  Payable by the 5th of each month, in advance, beginning on the “Operating Date.”

• May be increased on April 1 annually by CPI.

6.  Advertising Fee (Monthly Payment):  $1,000 until Budget Blinds has 1,500 Franchise Agreements; $1,500 from then on

• Due Date:  Same as royalty.

7.  Technology Fee:  $158.50

• Due Date:  Same as royalty.

• May be increased on April 1 annually by CPI.

• Covers Budget Blinds’ web-based application and toll-free telephone number.

• Amount may increase but will not exceed $175 per month.

8.  Telephone Fee:  $45 per month per line

• Due Date:  Same as royalty.

• May be increased on April 1 annually by CPI.

• Covers the dedicated telephone number Budget Blinds procures on your behalf.

9.  Initial Training:  first 2 attendees are free. Each additional attendee pays $100 per day.

• Due Date:  One week before training begins.

10.  Additional Territory Fee:  an amount equal to the then-current Initial Territory Fee if you buy an additional territory in the future

• Due Date:  When you purchase additional Territories.

• Availability of additional Territories is at Budget Blinds’ discretion.

11.  Encroachment Payment:  60% of your gross sales (revenue less cost of goods) in another franchisee’s territory

• Due Date:  When you make sales in another franchisee’s territory.

• As an alternative to termination of your franchise for operating in another franchisee’s territory, Budget Blinds may require you to compensate the other franchisee instead.

12.  Key Account Certification and Referral Fees:  Budget Blinds negotiates each program individually with the Key Account

• Due Date:  No more often than monthly.

• You may be required to pay a fee in order to be certified to service a Key Account. Budget Blinds may also charge you referral fees in exchange for Key Account leads.

• You may opt out of servicing any Key Account.

13.  Fees for Optional Referral Programs:  not yet determined

• Due Date:  Payable monthly by the 5th of each month, for leads or sales during the prior month.

• The specific details of a customer referral program have not yet been set.

14.  Transfer Fee:  Budget Blinds’ then-applicable transfer fee; currently $5,000 for each Territory transferred

• Due Date:  Before transfer.

• Payable when you sell your franchise.

• No charge if your franchise is assigned to a corporation or similar entity that you control.

15.  Transfer Lead Referral Fee:  Budget Blinds’ then-applicable transfer lead referral fee; currently $15,000 or any broker fee Budget Blinds incurs

• Due Date:  Upon a transfer of your Franchise Agreement to a buyer who was already listed in Budget Blinds’ sale database at the time you and the buyer began discussing a sale.

• Intended to partially reimburse Budget Blinds for its costs in developing leads who then purchase from existing franchisees.

16.  Renewal Fee:  $1,000

• Due Date:  When you sign a renewal Franchise Agreement.

17.  Late Charges:  $100 late fee for royalties and advertising fees, plus interest at 18% or the maximum legal rate, whichever is less

• Due Date:  Date when payment was due.

• Payable only if there are insufficient funds in your account to cover withdrawal of amounts due.

18.  Insufficient Funds Fee:  $25

• Due Date:  Immediately upon notice of insufficient funds.

• Assessed if Budget Blinds must reprocess debit from your bank account or resubmit a check.