Franchise Costs: Detailed Estimates of Screenmobile Franchise Costs (2020 FDD)

Detailed Estimates of Screenmobile Franchise Costs Based on Item 7 (Estimated Initial Investment) of Screenmobile’s 2020 Franchise Disclosure Document

1.  Initial Franchise Fee:  $39,500

2.  Initial Territory Fee:  $7,500 to $21,500

3.  Trailer and Equipment Package:  $19,500

• This item includes 1 Screenmobile trailer (‘Trailer”) which you will use in the operation of your Screenmobile Business to transport various equipment, supplies, and materials. The Trailer will be pulled by a vehicle (which you will obtain separately).

• The franchisor anticipates that you will only need 1 Trailer for at least the first 2 years of your Screenmobile Business’s operation.

• This item also includes the screening hand tools and the major equipment, including a power generator and chop saw, necessary for operating your Screenmobile Business.

4.  Vehicle Signage Package:  $2,500

• This item includes the signs, emblems, lettering, and logos that the franchisor recommends you to display on your vehicle(s). This item estimates the cost of signage for 1 vehicle. The franchisor anticipates that you will only need 1 vehicle for at least the first 2 years of your Screenmobile Business’s operation.

• In addition to the vehicle signage package, you may use other signage on your vehicle(s) and Trailer(s) that the franchisor periodically approves.

5.  Stationery Package:  $1,000

• This item includes letterhead paper, envelopes, and business cards that the franchisor or its designee will prepare and provide to you for use in the operation of your Screenmobile Business. This item also includes work order forms, estimate forms, and invoice forms for use in the operation of your Screenmobile Business.

6.  Uniform Package:  $1,000

• This item includes approximately 2 Screenmobile Business uniforms, which you and your employees are required to wear in connection with the operation of your Screenmobile Business.

7.  Technology Package:  $1,500

8.  Initial Marketing Package:  $2,000

• This item includes various materials which the franchisor will supply to you for your use in advertising, marketing, and promoting your Screenmobile Business. These materials include sales presentation folders, brochures, pamphlets, door hangers, yard signs, Google Ad Words, literature, assistance in the preparation of newspaper articles, radio commercials, and home show booth displays (on a loan basis if possible).

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

• This item estimates the cost of the initial inventory for your Screenmobile Business, which will include 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 starter initial inventory. The high range amount is a more complete amount of inventory. Either amount will be satisfactory to begin operating your Screenmobile Business.

• Additional inventory may be needed to begin operating your Screenmobile Business, depending on your location and the time of the year.

10.  Trailer DMV Registration, Taxes, and Freight Costs:  $1,000 to $2,500

• If you are located outside the State of California, the franchisor will ship FOB from Los Angeles, California the Trailer(s) to you via common carrier. This item estimates the freight charges (calculated at approximately $1.00 per mile) to ship 1 Trailer, as well as the sales taxes and registration and license plate fees imposed by your home state.

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

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

• 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, if applicable, your business manager, and one 1 additional person; if additional initial training is required, or more people must be trained, an additional fee will be assessed.

12.  Local Advertising – 3 Months:  $1,000 to $3,000

• During the term of the Franchise Agreement, you are required to spend between 4% and 10% of your monthly Gross Sales to advertise and promote your Screenmobile Business locally. This item estimates your local advertising expenditures for the first 3 months of your Screenmobile Business’s operations.

• This is an estimate that will depend on how much business you generate during this initial term, and should not be construed as an earnings claim or other indication of how much revenue your Screenmobile Business will generate.

13.  Vehicle Lease:  $0 to $1,000

• This item includes 1 vehicle which you will use in the operation of your Screenmobile Business (“Vehicle”).

• The franchisor requires that the Vehicle meets the following specifications: white truck or van from the manufacturer of your choice, 2008 model year or later, in good operational condition, the body clean and free of any major or minor damage. The Vehicle must be decorated according to the franchisor’s specifications.

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

• The low estimate assumes you own the Vehicle. The high estimate provided reflects 3 months of lease payments on either a 36-month or a 48-month lease for 1 Vehicle. The franchisor anticipates that you will only need 1 Vehicle for at least the first 2 years of your Screenmobile Business’s operation.

14.  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 Screenmobile Business and obtaining wireless Internet from a mobile provider to use your Wi-Fi hotspot provided by the franchisor. The estimates include 3 monthly statements.

15.  Insurance for 3 Months:  $300 to $900

• You must obtain and maintain, at your own expense, the insurance coverage the franchisor requires, and satisfy other insurance-related obligations.

• Insurance costs vary drastically from state to state and this is only an estimate. You are encouraged to contact your local insurance agencies to obtain more accurate estimates of the costs for the insurance requirements described in Item 8.

16.  Additional Funds for 3 Months:  $1,000 to $3,000

• This estimate includes your initial start-up expenses (other than the items identified separately in the table) during the first 3 months of operation. These expenses include payroll costs during the first 3 months of operation, but not any draw or salary for you.

• These figures are estimates, and the franchisor cannot guarantee you will not have additional expenses starting the business.

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

• Most franchisees will operate their Screenmobile Businesses out of their Vehicles and Trailers and their homes, but the Screenmobile Business may 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.

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

• You will be required to store the Trailer and Vehicle. If you have adequate storage space at your residence for the Trailer and Vehicle, 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.

18.  Total:  $83,600 to $119,200