FDD Talk 2021: Screenmobile Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Screenmobile franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Screenmobile franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Screenmobile franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Screenmobile outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Screenmobile’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 average, median, low, and high gross sales per month (January to December) for the 114 franchised Screenmobile Businesses that were open for at least 12 months as of December 31, 2019 and operated for the entire 2019 calendar year

• 2019 average, median, low, and high number of customers per month (January to December) for the 114 franchised Screenmobile Businesses that were open for at least 12 months as of December 31, 2019 and operated for the entire 2019 calendar year

• 2019 average, median, low, and high customer sales per month (January to December) for the 114 franchised Screenmobile Businesses that were open for at least 12 months as of December 31, 2019 and operated for the entire 2019 calendar year

• 2019 average, median, low, and high yearly gross sales per location, number of jobs per year, and yearly customer sale for the 114 franchised Screenmobile Businesses that were open for at least 12 months as of December 31, 2019 and operated for the entire 2019 calendar year

• 2020 average, median, low, and high gross sales per month (January to July) for the franchised Screenmobile Businesses that were open during the entire period from January to July 2020

• 2019 average, median, low, and high operating expense percentage for the 113 franchised Screenmobile Businesses that were open for at least 12 months as of December 31, 2019 and responded to the franchisor’s survey

Section I – Background Information

14 Things You Need to Know About the Screenmobile Franchise

Bolsters Corporate Team with Addition of New Franchise Development Manager

1.  In early November 2020, Screenmobile announced that it was growing its corporate team with the addition of a new franchise development manager, Ben Torrie. Torrie joins the team with nearly 10 years of experience in B2B consulting, including significant time spent consulting for major franchise brands across the U.S. and Canada. With Screenmobile’s recent emphasis on the brand’s growth, Torrie’s passion for the industry and previous franchise experience makes him the perfect fit for this role.

2.  Torrie said, “I’m thrilled to be joining the Screenmobile corporate team at such a pivotal time for them. Although 2020 has been a tricky year for all, it’s positive to see many businesses are not only surviving, but thriving! It will be exciting to help continue their expansion across North America.”

3.  The recent announcement comes on the heels of a continuous effort to expand nationally. Since the start of 2020, Screenmobile has had a number of new openings in several cities across the nation. In fact, the recession-resistant brand has remained strong even amid a global pandemic, with most Screenmobile locations able to safely continue their business operations as many were deemed essential. The brand also was recently recognized by the Franchise Times on its prestigious Top 200+ list.

4.  Scott Walker, president and CEO of Screenmobile, said, “Ben is a wonderful addition to our team, and we know he will be instrumental to our growth in the months ahead. With his background and experience, there’s no doubt he will be a perfect fit for us and will have a positive effect on our franchise system.”

Plans for Rapid Growth Ahead

5.  At the end of February 2021, Screenmobile announced that it had begun ramping up for a strong year ahead. The announcement comes on the heels of a pivotal 2020 amid a global pandemic, with the brand seeing a systemwide sales growth of about 20% from January through June. The announcement comes at a time of growth for the brand – over the past year, the brand has added 11 locations. And, Screenmobile has plans to grow into new markets like Castro Valley, Napa and Palo Alto, California; Chattanooga, Tennessee; Katy, Texas; and Albuquerque, New Mexico.

6.  Additionally, in 2020, Screenmobile saw a boost in its customer interest with an average 50% increase in contact forms on its website for users, new visitors, and sessions from the previous year.

7.  Scott Walker, president and CEO of Screenmobile, said, “After a challenging year, we’re thrilled that we were able to thrive in the face of adversity. There is great opportunity in 2021 to continue to grow, and we’re excited that our brand is in the position to do it.”

Accelerates Development in New Markets and Attains Notable Growth Throughout First Half of 2021

8.  In early July 2021, Screenmobile announced that it had experienced significant success in the first half of 2021, increasing its nationwide footprint by seven percent with nine new openings and reporting a 32 percent increase in systemwide revenue year over year, with an approximate 27 percent increase in total number of jobs completed. This company-wide growth comes on the heels of a successful 2020, with most local Screenmobile franchise owners reporting a 10 to 20 percent increase in revenue.

9.  Scott Walker, CEO of Screenmobile, said, “Despite the obstacles the pandemic brought upon small businesses, the viability of Screenmobile’s business model enabled us to persevere and see the demand for our services rise at our current locations while simultaneously driving growth in new untapped markets across the country. Our growth and success are largely due in part to our passionate franchise owners and corporate team who have prioritized customer satisfaction for all the services we offer to our clients. It’s exciting to see the leaps and bounds that we have made thus far, and we are eager to maintain this strong momentum throughout the rest of the year.”

10.  Known for its state-of-the-art screen installation and repair, Screenmobile offers a variety of screening services including porch and patio enclosures, sun control, pet solutions, and more. The brand and its franchisees offer unparalleled customer service tailored to meet the specific needs of their clients, which has led them to national recognition on the Entrepreneur Franchise 500 list for 15 consecutive years, including the No. 1 ranking in the home services category in 2020.

11.  Screenmobile has experienced continued growth in the past several years driven in part by existing franchisees who have continued to invest in the brand, including multi-unit owner Nick Rosso, who recently signed an agreement to expand his portfolio and bring three new Screenmobile locations to Austin, Texas.

Company History

12.  Screenmobile was founded in 1980 by Monty M. Walker and his sons Scott and Monty L. Walker in Glendora, California. The Walkers saw the demand for screen repair and installation and they thought that offering a mobile service that came to customers’ homes would be best suited to the industry. Initially, the Walkers worked out of the family garage, with Monty’s wife, Sharleen, managing the business side of the operations. The Walker men were out on the road, repairing, customizing, and installing a variety of screens in the area.

13.  To meet the rising demand for their services, the Walkers moved the business to Palm Springs in 1981. Building on the success of Screenmobile, the Walkers upgraded their trailer and were able to offer a wider variety of screen repair and installation services. The Walkers began franchising the Screenmobile concept in 1984. Today, there are Screenmobile units across 30 states. The Walker family continues to own and operate Screenmobile with Scott Walker serving as president and CEO.

Entrepreneur’s Franchise 500

14.  Screenmobile ranked No. 248 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Screenmobile franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Screenmobile’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  102
• Outlets at the End of the Year:  108
• Net Change:  +6

2019

• Outlets at the Start of the Year:  108
• Outlets at the End of the Year:  121
• Net Change:  +13

2020

• Outlets at the Start of the Year:  121
• Outlets at the End of the Year:  130
• Net Change:  +9

Company-Owned

2018

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2019

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• As of June 30, 2020, Screenmobile had 130 franchised Screenmobile Businesses and one franchisor-owned Screenmobile Business in operation. Parts 1 through 5 below provide information on 114 franchised Screenmobile Businesses (“Reporting Group”) that were open for at least 12 months as of December 31, 2019 and operated for the entire 2019 calendar year (“Reporting Criteria”).

• Nine Screenmobile Businesses that were not open at least 12 months as of December 31, 2019 and nine Screenmobile Businesses that did not operate for the entire year were not included in the Reporting Group.

• Screenmobile included two Screenmobile Businesses in the Reporting Group that closed prior to June 30, 2020 but met the Reporting Criteria.

• The information in Parts 1 through 5 below is a historical financial performance representation for the Reporting Group for the 2019 calendar year (“2019 Reporting Period”) and for the first seven months of 2020, comparing 2019 to 2020 operating results for months impacted by the COVID-19 pandemic (“2020 Reporting Period”). The financial information was prepared from internal accounting records and reports. The numbers have not been audited but Screenmobile has no reason to doubt their accuracy.

• In March 2020, Screenmobile sent a survey to franchisees requesting figures showing operating expenses as a percentage of Gross Sales. Screenmobile received a total of 113 responses from franchisees. Part 6 contains the results of this survey for these 113 franchises. All 113 franchises operated for the entire 2019 calendar year.

• All of the Screenmobile Businesses included in this financial performance representation offer similar services and face a similar degree of competition anticipated for the Screenmobile Businesses offered under the Disclosure Document.

Part 1 – Average and Median Gross Sales by Month for the Reporting Group During the 2019 Reporting Period

January