Screenmobile Franchise Costs: Estimated Initial Investment (Item 7, 2023 FDD)
1. Franchise Fee: $49,500
2. Territory Fee: $22,500
- The estimate for the Territory Fee assumes a territory with 150,000 Households and that no discounts apply to the Franchise Fee or Territory Fee.
3. Start-Up Package: $41,900
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- The start-up package contains the equipment, supplies, and services for the Franchised Business (including a trailer, trailer signage, equipment, tools, vehicle signage, stationery, branded items, marketing and advertising items, gift card for uniform purchases, tablet, phone, various office technology-related equipment, initial marketing collateral, product samples, and bookkeeping services) (the “Start-Up Package”).
- Screenmobile does not offer financing for the Start-Up Package.
- The Start-Up Package does not include all of the tools and equipment you will need to operate your Franchised Business.
- You may receive a $3,750 discount to the Start-Up Package if you (or one of the owners, if the franchisee is a business entity) or one of your employees is a certified public accountant and you elect to perform your own bookkeeping services during the first year. If you do not continue to perform the required bookkeeping services for the Franchised Business for a minimum of 1 year, you must pay back the discount of $3,750.
4. Pre-Opening and Grand Opening Marketing: $6,000
- You will pay Screenmobile a fee for pre-opening and grand opening marketing. This amount is in addition to the Annual Local Marketing Fee.
- Screenmobile will use the fee to conduct initial local marketing for the Franchised Business up to a week in advance of opening of the Franchised Business and up to 60 days after opening the Franchised Business, or at another timeframe that Screenmobile designates.
- Screenmobile will utilize the marketing and public relations programs as well as media and advertising materials that it has developed or approved. Although not required as of the date of the disclosure document, Screenmobile anticipates that sometime in 2024, it will begin collecting the Grand Opening Marketing Fee.
5. Inventory and Supplies: $15,000 to $20,000
- This item estimates the cost of the start-up initial inventory for your Franchised 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 Franchised 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.
6. Travel Expenses for Initial Training: $1,000 to $1,500
- Your Owners and the management personnel Screenmobile designates must complete the initial Training Program in Thousand Palms, California. The estimate is for the travel expenses, lodging, and meals of 2 individuals for up to 10 days.
- Your travel expenses and living costs will vary depending on your point of origin, method of travel, class of accommodation and choice of restaurants, local transportation, etc.
7. Vehicle Lease: $0 to $7,500
- You must own, lease, or buy at least 2 vehicles less than 7 years old that are operable and meet the requirements described in the Brand Standards Manual. The low estimate assumes that you lease 1 vehicle and the high estimate assumes you lease 2 vehicles.
- The estimate covers the up-front lease costs and the first month’s lease payment. If you choose to purchase, trucks cost from $30,000 to $60,000 each and vans cost from $20,000 to $45,000 each.
- The vehicles must be able to accommodate the basic inventory list, including shelving. Only specific vehicle designs will be allowed and Screenmobile must approve your vehicle design.
- Screenmobile has approved vendors who can lease approved vehicles and signs at competitive prices.
- Franchisees with a larger Territory or multiple Territories may require additional vehicles.
8. Signage for Vehicles: $3,500 to $7,000
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- You must paint or wrap your vehicles and add signage. Screenmobile estimates this cost to be approximately $3,500 per vehicle.
- You must purchase artwork for vehicle signage bearing the Marks from an approved vendor before opening your business. Once you approve your artwork proofs, the cost is no longer refundable.
9. Vehicle Registration Fees: $1,500 to $2,000
- You will need to register your 2 vehicles with the state and local motor vehicle authorities. These registration fees will vary from state to state.
10. Insurance: $2,000 to $12,000
- Before you open your Franchised Business, you must purchase and maintain at your sole cost and expense the insurance coverage that Screenmobile specifies. Insurance cost will vary based on where your Franchised Business will be located, your prior experience with the insurance carrier, the loss experience of the carrier, and other factors.
- You should check with your insurance agent or broker regarding any additional insurance that you may wish to carry above Screenmobile’s stated minimums.
11. Telephone Lines and Wireless Internet: $300 to $800
- This item estimates the costs of obtaining up to 2 telephone lines for use in operating your Franchised Business and obtaining wireless Internet from a mobile provider. You are required to own or purchase a smartphone for your Franchised Business if one is not included in your telephone package.
12. Lease, Utility and Security Deposits, and Storage: $0 to $2,500
- Most Screenmobile franchisees will operate their Franchised Businesses out of their vehicle(s) and their homes. You may also operate from office buildings, business parks, and other commercial real estate locations.
- If you decide to operate your Franchised 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 to 1,500 square feet. Your actual rent payments will vary depending on your location and your market’s retail lease rates.
- You will be required to store the vehicle(s). If you have adequate storage space at your residence for the vehicle(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 space.
13. Additional Funds for 3 Months: $22,500 to $50,000
- This is an estimate of additional funds you may need during the initial period of operation of the Franchised Business, which Screenmobile defines as 3 months from opening. Screenmobile’s estimates are based on both its experience and its predecessor’s experience in the screen services and other home services industries and as a franchisor.
- You will need to have sufficient additional capital to cover ongoing expenses, such as payroll costs if your start-up plan includes hiring support staff, or reasonable compensation for you based on your preferred lifestyle.
- The estimate given is the amount of additional funds Screenmobile estimates you will need to cover these expenses during the initial 3 months.
14. Total Estimated Initial Investment: $165,700 to $226,700