Screenmobile Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

1.  Initial Franchise Fee:  $39,500

2.  Initial Territory Fee:  $7,500 to $41,250

3.  Start-Up Package:  $35,500 to $68,300

• The Start-Up Package includes the following:

• a. Trailer and Trailer Signage. The low estimate includes one Screenmobile trailer (“Trailer”) and the high estimate includes two Trailers. You will use the Trailers in the operation of your Screenmobile Business to transport various equipment, supplies, and materials.  You must have a separate Trailer for each truck or van that you are required to purchase. The Trailer will be pulled by a Vehicle (which you will obtain separately, as described below). Unless you have a Large Territory, Screenmobile anticipates that you will only need one Trailer for at least the first two years of your Screenmobile Business’ operation. If you purchase a Large Territory, you are required to have an additional vehicle plus purchase from Screenmobile a Trailer, vehicle wrap, tool package, and other items as Screenmobile deems necessary.

• b. Equipment and Tools. This includes toolboxes, screening tools, a battery-operated chop saw, saw blades, drills, bits, a ladder, concrete hammer, hammers, screwdriver set, torque locking pliers, hacksaws, pliers, nut drivers, caulk gun, rivet tool, snips, extension cords, compact dry vac, broom, tool kit combo, miter saw and stand, tool tote, and logoed screen roll straps.

• c. Vehicle Signage. This includes the wrap, signs, emblems, lettering, and logos that you are required to display on your Vehicle. There will be an additional charge for your wrap if you purchase or use a box truck. In addition to the vehicle signage Screenmobile supplies, you may use other signage on your Vehicle(s) and Trailer(s) that Screenmobile periodically approves.

• d. Stationery. This includes envelopes, business cards, yard signs, door hangers, initial pack of screen frame warning labels and thank you cards that Screenmobile or its designee will prepare and provide to you for use in the operation of your Screenmobile Business.

• e. Uniforms. This includes a $1,000 gift card for uniform purchases, including shirts, jackets, and hats, which you and your employees are required to wear in connection with the operation of your Screenmobile Business.

• f. Technology and Telephone. This includes: a 128 GB Apple iPad or similar tablet with cellular capabilities; VOIP desk phone with one month’s service and set-up and/or smartphone with one month’s service; microphone kit for video making; credit card swiper; and an iPad case.

• g. Initial Marketing. This includes various materials which Screenmobile will supply to you for your use in advertising, marketing, and promoting your Screenmobile Business. These materials include items such as sales presentation folders, brochures, pamphlets, door hangers, yard signs, Google Ad Words, social media placement, website set-up for referrals, literature, assistance in the preparation of newspaper articles, radio commercials, and home show booth displays (which may be on a loan basis).

• h. Product Samples. This includes product sample kits from key vendors, including swinging door samples, sliding door samples, retractable door samples, motorized roll down samples, porch and winterization samples, and security door samples.

• i. Bookkeeping Services. This includes one year of bookkeeping services provided by Screenmobile’s approved vendor of bookkeeping services. If you, or if you are an entity, one of your owners, or one of your employees is a certified public accountant, you may perform your own bookkeeping services during the first year. The low estimate reflects the discount for performing your own bookkeeping services. After the first year, you must retain the services of a bookkeeping service of your choice, unless you, or if you are an entity, one of your owners, or one of your employees is a certified public accountant.

4.  Inventory and Supplies:  $5,000 to $15,000

• This item estimates the cost of the start-up initial inventory for your Screenmobile Business. It includes items such as aluminum screen frames for windows and doors, fiberglass screening material, corners, sliding screen door kits, and an assortment of fasteners.

• The low range amount is a minimum level of initial inventory. The high range amount is a more complete amount of inventory.

• Additional inventory may be needed to begin operating your Screenmobile Business, depending on your location and the time of the year. Screenmobile will determine a satisfactory start-up inventory amount on a case-by-case basis, and the preferred vendors to purchase from. You will pay the vendor directly for the start-up inventory.

5.  Trailer DMV Registration, Taxes, and Freight Costs:  $1,000 to $4,500

• If you are located outside the state of Arizona, Screenmobile will ship the Trailer(s) from Phoenix, Arizona to you via common carrier or third-party shipper.

• This item estimates the freight charges (calculated at approximately $1.00-$3.00 per mile) to ship either one or two Trailers, as well as the sales taxes and registration and license plate fees imposed by your home state. You are responsible for payment of the Trailer shipping costs.

6.  Training Expenses:  $500 to $2,000

• This item estimates the travel and living expenses that each individual will incur in connection with attending Screenmobile’s initial training program. Screenmobile provides training at its headquarters in Thousand Palms, California or at another location designated by it.

• You must pay for airfare, transportation costs, lodging, meals, and incidental expenses for all initial training program attendees.

• Initial training is provided at no charge for you and/or your designated manager (if applicable) and one additional person, provided you attend the same initial training program; if additional initial training is required, or more people must be trained, you must pay an additional fee.

7.  Vehicle Lease:  $0 to $2,000

• This item includes an estimate for one to two vehicles that you will use in the operation of your Screenmobile Business (“Vehicle”).

• Screenmobile requires that each Vehicle meets the following specifications: white (or color that can be wrapped) truck or van from the manufacturer of your choice, 2016 model year or later, in good operational condition, and the body clean and free of any major or minor damage. In most areas, a ½ ton or 1500 series style is sufficient for your Screenmobile Business.

• The Vehicle must be branded with Screenmobile’s Vehicle wrap. If your Vehicle is not white, a full wrap is required to make it a white vehicle with a branded Vehicle wrap.

• You may use a vehicle you currently own as your Vehicle, provided it meets Screenmobile’s specifications; otherwise, you will be required to lease or purchase a Vehicle.

• The low estimate assumes you already own a vehicle that will be used as the Vehicle. The high estimate provided reflects three months of lease payments on either a 36-month or a 48-month lease for two Vehicles.

• Unless you purchase a Large Territory, Screenmobile anticipates that you will only need one Vehicle for at least the first two years of your Screenmobile Business operations.

• Screenmobile requires you to maintain one Vehicle for every 150,000 Housing Units in your Territory.

8.  Telephone Lines and Wireless Internet:  $300 to $800

• This item estimates the costs of obtaining up to two telephone lines for use in operating your Screenmobile Business and obtaining wireless Internet from a mobile provider. You are required to own or purchase a smartphone for your Screenmobile Business if one is not included in your telephone package.

9.  Lease, Utility and Security Deposits, and Storage:  $0 to $2,500

• Most Screenmobile franchisees will operate their Screenmobile Businesses out of their Vehicle(s), Trailer(s) and their homes. The Screenmobile Business may also be operated from office buildings, business parks, and other commercial real estate locations. If you decide to operate your Screenmobile Business out of an office, you will be solely liable for its compliance with all applicable business ordinances and building codes, and for obtaining all necessary health, building, sign, and other permits, licenses, and bonds as may be required for the operation of the office.

• While Screenmobile has no restrictions or requirements for square footage and/or building type, it has found that franchisees who decide to rent office and/or storage space typically rent a self-storage unit and/or move into a small industrial park office sized between 800-1500 square feet.

• Your actual rent payments may vary depending upon your location and your market’s retail lease rates.

• You will be required to store the Vehicle(s) and Trailer(s). If you have adequate storage space at your residence for the Vehicle(s) and Trailer(s), you may store them there. If you do not have adequate storage space at your residence or office, you will be required to rent such space.

10.  Additional Funds for 3 Months:  $2,675 to $7,920

• These amounts represent Screenmobile’s estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your Screenmobile Business. These expenses include items such as advertising, insurance, telephone fees, call center fees, software fees, and payroll costs during the first three months of operation, but not any draw or salary for you.

• These figures do not include standard pre-opening expenses, Royalties or Brand Building Fund contributions payable under the Franchise Agreement, or debt service and assume that none of your expenses are offset by any sales generated during the start-up phase.

• For purposes of this disclosure, Screenmobile estimates the start-up phase to be three months from the date your Screenmobile Business opens for business.

11.  Total Estimated Initial Investment:  $91,975 to $183,770

• This is an estimate of your initial start-up expenses for one Screenmobile Franchise.