If you are considering a Screenmobile franchise, don’t get blindsided by these 33 important franchise fees (from the initial franchise fee, to the royalty fee, to 31 other fees found in Items 5 and 6 of Screenmobile’s 2020 FDD).
1. Initial Franchise Fee: $19,750 to $39,500
- You must pay Screenmobile an initial franchise fee (“Initial Franchise Fee”) of $39,500 for your first franchise.
- If you decide to purchase a second franchise, the Initial Franchise Fee for the second franchise is 50% of the then-current Initial Franchise Fee. You will still be required to pay all remaining fees for the second franchise.
- The Initial Franchise Fee is deemed fully earned by Screenmobile once paid and is non-refundable. The Initial Franchise Fee is uniform.
- Screenmobile offers a $2,500 discount on the Initial Franchise Fee for the purchase of the first Screenmobile franchise to honorably-discharged veterans of the United States Armed Forces that have been discharged within the last 10 years and their spouses.
2. Initial Territory Fee: $0.10-$0.15 per household
- You must pay Screenmobile an initial territory fee (“Initial Territory Fee”) of $0.15 per household for your first franchise.
- Screenmobile’s territory size ranges between 50,000 and 150,000 households. The cost will be between $7,500 and $21,000, depending on the number of households defined by zip codes.
- The Initial Territory Fee grants you the exclusive right to operate a Screenmobile Business within a particular geographical territory containing approximately 50,000 to 150,000 households.
- If you sign a Franchise Agreement for a second franchise, you will pay an Initial Territory Fee of $0.10 per household for the second franchise. The cost will be between $5,000 and $15,000, depending on the number of households defined by zip codes.
- The Initial Territory Fee is uniform and payable in a lump sum and is not refundable under any circumstances.
3. Additional Required Purchases: varies
- In addition to paying Screenmobile the applicable Initial Franchise Fee and Initial Territory Fee, you must purchase from Screenmobile at the time you sign the Franchise Agreement the following items for each Screenmobile Business that you purchase:
- (1) trailer and equipment package for $19,500;
- (2) vehicle signage package for $2,500;
- (3) uniform package for $1,000;
- (4) stationery package for $1,000;
- (5) technology package consisting of software, a laptop computer, a 12-volt printer, vehicle stand, cables, Wi-Fi hotspot, and vehicle installation for $1,500; and
- (6) initial marketing package for $2,000.
- The fees for these items are uniform and are not refundable under any circumstances.
4. Royalty: greater of $250 per month or 7% of monthly gross sales
- Due Date: Due by the 5th day of each calendar month for the previous month.
- Based on gross sales during the previous month.
- Payments are made by check or via an electronic funds transfer (“EFT”).
5. Marketing Fee: currently $125 per month, subject to annual increases of up to $20 per month upon written notice to you
- Due Date: Same as royalty.
6. Local Advertising Requirement: minimum of 4% of monthly Gross Sales
- Due Date: Monthly.
- Screenmobile requires that you spend a minimum of 4% of your monthly Gross Sales on local advertising. Screenmobile recommends that you spend between 4% and 10%. If you fail to spend the local advertising requirement in any given period, you will be required to pay the difference to the brand building fund.
7. Regional Advertising Cooperatives: established by cooperative members
- Due Date: Established by cooperative members.
- If Screenmobile establishes a regional advertising cooperative in your area, you must contribute to it as Screenmobile requires. Each Screenmobile Business gets 1 vote. There will be no maximum amount imposed by Screenmobile for the cooperative.
8. Training Fee for Additional Persons: Screenmobile’s then-current training charge (currently $8,000 per person plus expenses)
- Due Date: As incurred.
- Screenmobile provides initial training at no cost to you and/or, if applicable, your business manager, and 1 additional person.
- Additional people may attend if you pay Screenmobile’s then-current training fee.
9. Additional Training or Assistance: an amount set by Screenmobile (currently $1,000 per day) plus Screenmobile’s personnel’s per diem charges and travel and living expenses
- Due Date: As incurred.
- Screenmobile provides initial training at no cost for you and/or, if applicable, your business manager, and 1 additional person.
- Screenmobile may charge you for training newly-hired personnel, refresher training courses, and additional or special assistance or training you need or request.
10. Convention Fee: then-current fee (currently $139). In addition, you will be required to pay for your personnel’s travel and living expenses.
- Due Date: Prior to convention.
- You are required to attend all meetings designated by Screenmobile as mandatory including, without limitation, its annual convention, unless otherwise excused by Screenmobile.
- One management-level individual must attend on behalf of each of your Screenmobile Business locations. You may be required by Screenmobile to pay it fees prior to events to offset the cost of conventions or other programs.
11. Territory Reservation Fee: $5,000 per territory
- Due Date: As incurred.
- Due if you request that Screenmobile reserve a particular geographic territory for a period of 90 days for your operation of a Screenmobile Business and Screenmobile agrees to do so. The fee is nonrefundable, but may be applied toward the Initial Territory Fee payable under a Franchise Agreement for the reserved territory.
12. Transfer Training Fee: $8,000
- Due Date: Before transfer is completed.
- The training fee will not apply if the transferee has already satisfactorily completed Screenmobile’s initial training program.
13. Transfer Fees: $3,000
- Due Date: $1,000 non-refundable deposit at time of transfer application submittal and the remaining balance of fee at time of approved transfer.
- Payable only in connection with the transfer of your Screenmobile Business, a transfer of ownership of your legal entity, or your Franchise Agreement.
- The training fee portion will not apply if the transferee has already satisfactorily completed Screenmobile’s initial training program.
14. Management Fee: $250 per day plus costs and expenses
- Due Date: As incurred.
- Payable if Screenmobile manages the Screenmobile Business because you are in breach of the Franchise Agreement, or upon your, the managing owner’s, or the designated manager’s termination, death, or disability.
15. Successor Franchise Fee: 10% of then-current Initial Franchise Fee
- Due Date: At the time you sign the new Franchise Agreement.
- Payable if you qualify to renew your Franchise Agreement and choose to enter into a new Franchise Agreement.
16. Operations Manual Replacement: $5,000
- Due Date: As incurred.
- Payable if your copy of the operations manual is lost, destroyed, or significantly damaged, or you fail to return it to Screenmobile immediately upon the expiration or termination of the Franchise Agreement.
17. Franchise System Website Fees and Maintenance Charges: then-current fees and charges (currently $0)
- Due Date: As incurred.
- Screenmobile reserves the right to charge you a fee for providing you with a web page on the Franchise System website that references the Screenmobile Business.
18. Territory Infringement Fines: $1,000 plus invoice amount for services rendered for first violation; $5,000 plus invoice amount for services rendered for second and subsequent violations
- Due Date: As incurred.
- Payable to Screenmobile if you infringe on another Screenmobile franchisee’s territory by receiving payment for goods and/or services provided and/or rendered within the other franchisee’s territory without his or her permission.
- Screenmobile may direct the funds at its option.
19. Insurance: you must reimburse Screenmobile’s costs plus a 20% administrative fee
- Due Date: On demand.
- If you fail to obtain insurance, Screenmobile may obtain insurance for you and you must reimburse it for the cost of insurance obtained plus 20% of the premium as an administrative cost of obtaining the insurance.
20. Returned Check or Non-Sufficient Funds Fee: $100 per occurrence
- Due Date: As incurred.
- Payable if any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event.
21. Late Payment: $50 per occurrence, plus $5 for each day the payment has not been made beyond the due date
- Due Date: As incurred.
- Payable if any payment due to Screenmobile or its affiliates is not made by the due date. Interest accrues from the original due date until payment is received in full.
22. Interest: 1.5% per month or highest commercial contract interest rate law allows, whichever is less
- Due Date: As incurred.
- Charged on any late payments of fees, amounts due for product purchases, or any other amounts due Screenmobile or its affiliates, including royalties. Interest will continue to accrue until the interest and the overdue amount are both paid.
23. Indemnification: will vary under circumstances
- Due Date: As incurred.
- You must indemnify and reimburse Screenmobile for any expenses or losses that it or its representative incurs related in any way to your Screenmobile Business, franchise, or the operation of your Screenmobile Business.
24. Legal Costs and Professional Fees: will vary under circumstances
- Due Date: As incurred.
- You will be required to reimburse Screenmobile for any legal or accounting fees that it incurs as a result of any breach or termination of your Franchise Agreement. You must reimburse Screenmobile if it is required to incur any expenses in enforcing its rights against you under the Franchise Agreement.
25. Payment Service Fee: up to 3% of total charge
- Due Date: As incurred.
- If payment is made to Screenmobile or its affiliates by credit card for any fee required, Screenmobile may charge a service charge of 3% of the total charge.
26. Software Fee: then-current fees and charges (currently $125 per month)
- Due Date: Same as royalty.
- Screenmobile reserves the right to upgrade and modify the software. You will be responsible for any increase in fees that result from an upgrade or modification to the software.
27. Telephone Fee: $20 per month
- Due Date: Same as royalty.
- Payable to Screenmobile for a local telephone number that it will obtain for you.
28. Noncompliance Fee: $100 per day after notice period
- Due Date: As incurred.
- Franchisees shall pay, upon demand, a noncompliance fine for any failure to comply with Screenmobile standards.
29. Audit: cost of audit and inspection, any understated amounts, and any related accounting and legal expenses, plus interest (Screenmobile estimates this cost to be between $1,000 and $10,000)
- Due Date: On demand.
- You will be required to pay this if an audit reveals that you understated monthly Gross Sales by more than 2%, and if you do not give Screenmobile reports, supporting records.
30. Unauthorized Advertising Fee: $500 per occurrence
- Due Date: Upon demand.
- This fee is payable to the Brand Building Fund if you use unauthorized advertising in violation of the terms of the Franchise Agreement.
31. Additional E-mail Account Fee: $25 per year per additional account
- Due Date: As incurred.
- Payable if you desire to have more than one approved e-mail account.
32. Customer Satisfaction Reimbursement: will vary under circumstances
- Due Date: As incurred.
- Screenmobile may, in its sole discretion, remedy any issues with customers of your Screenmobile Business, including full reimbursement of any fees paid to you. You are required to reimburse Screenmobile for any such fees.
33. Non-Attendance Fee: $1,500 for annual conventions and $1,000 for regional meetings
- Due Date: As incurred.
- You will be required to pay this fee if you fail to attend any annual conventions or regional meetings.
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