Considering a Fish Window Cleaning Franchise? Don’t Overlook These 18 Important Franchise Fees

If you are considering a Fish Window Cleaning 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 Fish Window Cleaning’s 2019 FDD).

1.  Initial Franchise Fee:  $39,900 to $64,900

• You are required to pay Fish Window Cleaning a non-refundable Initial Franchise Fee as a lump sum at the time you sign the Franchise Agreement.

• The amount of Initial Franchise Fee varies for each of the three franchise Packages that Fish Window Cleaning offers. The Initial Franchise Fee for each Package is as set forth below:

• Small Package: $39,900
• Standard Package: $49,900
• Executive Package: $64,900

2.  Business Development Package Fee:  $6,000

• In addition to the Initial Franchise Fee, no later than the first day of training, you also must pay to Fish Window Cleaning a one-time Business Development Package Fee of $6,000 for your corporate business development and marketing activities during your opening and your initial ramp-up period, defined as weeks 1-12 after you open for business.

3.  Office Package:  $9,000 to $11,000

• Furthermore, you also must purchase from Fish Window Cleaning or FWCD certain items of the Office Package. The cost of the Office Package ranges from approximately $9,000 to $11,000, which includes $4,500 to $6,000 you pay to Fish Window Cleaning or its affiliates (the “Proprietary Office Package Fee”) for invoices, estimate sheets, brochures, and the setup fee for the Fish 3 proprietary web-based software system (the “Fish 3 Proprietary System”).

• The $3,000 setup fee for the Fish 3 Proprietary System, which is part of the Proprietary Office Package Fee, is due to Fish Window Cleaning or its affiliates no later than the first day of training school.

4.  Royalty:  6%-8% of greater of (i) Gross Sales or (ii) Applicable Minimum Performance Standard

• Due Date:  Weekly on Wednesdays.

• You must pay Fish Window Cleaning Royalty Fees based on Gross Sales each week (“Performance Period”) during your franchise term, including during your first week of operation.

• For each Performance Period, the Royalty Fee will be equal to the Applicable Percentage Rate (as defined below) multiplied by the greater of (i) your Gross Sales for the Performance Period or (ii) the Applicable Minimum Performance Standard (as defined below).

• The “Applicable Percentage Rate” for each Performance Period is determined as follows:

• (i) 8% of the Gross Sales during the Performance Period if your aggregate Gross Sales during the current calendar year are less than or equal to $300,000; (ii) 7% of the Gross Sales during the Performance Period if your aggregate Gross Sales during the current calendar year are between $300,000.01 and $500,000; and (iii) 6% of the Gross Sales during the Performance Period if your aggregate Gross Sales during the current calendar year are above $500,000.01.

• The “Applicable Minimum Performance Standard” for each Performance Period is determined as follows, for each year of your franchise term, depending on whether you have purchased the Small, Standard, or Executive Package:

Each Week Year One

• Small:  $1,000
• Standard:  $1,200
• Executive:  $1,300

Each Week Year Two

• Small:  $1,600
• Standard:  $1,900
• Executive:  $2,100

Each Week Year Three

• Small:  $2,200
• Standard:  $2,600
• Executive:  $2,900

Each Week Year Four

• Small:  $2,800
• Standard:  $3,300
• Executive:  $3,700

Each Week Year Five

• Small:  $3,400
• Standard:  $4,000
• Executive:  $4,500

Each Week Year Six

• Small:  $3,800
• Standard:  $4,500
• Executive:  $5,100

Each Week Year Seven

• Small:  $4,200
• Standard:  $5,000
• Executive:  $5,700

Each Week Year Eight

• Small:  $4,600
• Standard:  $5,500
• Executive:  $6,300

Each Week Year Nine

• Small:  $5,000
• Standard:  $6,000
• Executive:  $6,900

Each Week Year Ten

• Small:  $5,400
• Standard:  $6,500
• Executive:  $7,500

5.  Brand Building Fee:  1% of greater of (i) Gross Sales or (ii) Applicable Minimum Performance Standard

• Due Date:  Weekly on Wednesdays.

• These fees may change in the future.

6.  Technology Fee:  $50

• Due Date:  Weekly on Thursdays.

• These fees may change in the future.

7.  Transfer Fee:  $10,000, plus any applicable broker/referral/lead generation fee

• Due Date:  At time of transfer.

8.  Renewal Fee:  $5,000

• Due Date:  Upon execution of then-current Franchise Agreement.

9.  Account and Technical Support:  $300 per day, plus travel expenses

• Due Date:  30 days after billing.

10.  Audit and Recordkeeping Costs:  $250 to $3,000 for audit expenses

• Due Date:  15 days after billing.

11.  Late Fee:  $25 late fee minimum

• Due Date:  15 days after billing.

12.  Interest Expenses:  18% per annum on unpaid balances

• Due Date:  15 days after billing.

• The rate is calculated at a per annum rate but may be collected on demand, including weekly or monthly through automatic bank draft.

13.  Insufficient Funds Fee:  $25

• Due Date:  15 days after billing.

14.  Failure to Maintain Insurance:  Fish Window Cleaning’s actual cost for insurance premiums and a reasonable fee for expenses Fish Window Cleaning incurs

• Due Date:  15 days after billing.

15.  Management Fee:  5% of Gross Sales, plus reimbursement of Fish Window Cleaning’s out-of-pocket expenses

• Due Date:  If incurred, 10 days after the end of each month.

• You will be required to pay a Management Fee if you are indicted or have charges filed against you for a criminal act, if you have charges filed against you that could affect your business licenses, or if you commit any act of default, and Fish Window Cleaning assumes responsibility for managing the operation of your Business.

16.  Annual Convention Registration Fee:  $550 to $700

• Due Date:  As incurred.

• Currently, the annual registration fee per attendee is $550 for registration prior to the end of December and increases to as high as $700 for registrations during the month of June.

17.  Additional Training Fee:  $300 per day, plus travel costs

• Due Date:  As incurred.

• You must pay Fish Window Cleaning this fee for any additional training that you request or Fish Window Cleaning deems necessary in addition to the initial training program.

18.  Additional Email Addresses:  $100 per each additional email address

• Due Date:  As incurred.

• Fish Window Cleaning provides one email address for the Business. It reserves the right to charge this fee for any additional email addresses that you request.