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

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

• Section II – Estimated initial investment for a Window Genie 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 Window Genie franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Window Genie 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 Window Genie’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 and 2020 average, median, highest, and lowest gross sales per job for the top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and all franchised Window Genie businesses that were reporting sales for any part of the applicable calendar year

• 2019 and 2020 average and median percentage of recurring and occasional/new customers for all franchised Window Genie businesses that were were in operation and reporting sales during the entire applicable calendar year

Section I – Background Information

15 Things You Need to Know About the Window Genie Franchise

KKR to Acquire Window Genie’s Parent Company

1.  In early July 2021, KKR, a leading global investment firm, announced that it has agreed to acquire Neighborly, the world’s largest provider and franchisor of home service brands, from Harvest Partners. Financial details of the transaction were not disclosed.

2.  Founded in 1981, Neighborly is a leading home services platform that connects more than 10 million residential and commercial customers with a community of professionals focused on repairing, maintaining, and enhancing consumers’ homes and properties. Through a portfolio of 28 brands, the company offers a wide array of services including plumbing, pest control, restoration, electrical, cleaning, HVAC, home inspection, and many more.

3.  As one of the largest franchisors of “do-it-for-me” professional services, Neighborly has built a network of more than 4,800 franchises both in the U.S. and internationally. Over the past decade, Neighborly has quickly grown its platform through the organic growth of its existing service brands and strategic acquisitions of complementary franchise service brands.

4.  Mike Bidwell, president and CEO of Neighborly, said, “Today’s milestone is a strong validation of our business-building strategy and differentiated ability to deliver essential home services. We are excited to embark on our next chapter of growth with KKR’s support and global expertise and look forward to continuing to be a partner of choice for both customers and franchise owners in the years to come.”

5.  Felix Gernburd, managing director at KKR, said, “In a large and highly fragmented industry, Neighborly stands out for its differentiated strategy of bringing together adjacent services under a diversified and tech-enabled platform, and – most importantly – for its unrivaled dedication to customer service. We are thrilled to be investing in the Neighborly team as they continue to execute on their mission: enriching people’s lives by delivering amazing experiences.”

6.  Nicholas Romano, partner at Harvest Partners, said, “We are pleased to have worked with Mike and his team to continue building the premier residential service provider providing services that consumers need to repair, maintain and enhance their homes. Thoughtful investments in technology and human capital have resulted in a platform positioned for accelerated growth in the coming years.” Harvest’s Neighborly investment team is led by Steve Eisenstein, Nicholas Romano, and David Schwartz.

7.  KKR is making the investment in Neighborly from its North American private equity fund. Harris Williams is acting as financial advisor to Neighborly, with White & Case acting as a legal advisor on the transaction. The transaction was expected to close in Q3 2021, subject to regulatory approvals and other customary closing conditions.

Blog Highlights New Franchisee

8.  In late July 2021, Window Genie featured one of its newest franchisees, Joe Schlipman, on its blog. Before purchasing his window cleaning franchise, Joe Schlipman spent 13 years in the cruise line industry before being laid off. After falling victim to another downsizing in the following 3 years, Schlipman submitted what would be his last job application. After receiving a rejection letter for the job he felt he was overqualified for, he decided it was time to take control of his own success and leave the corporate world for good.

9.  Schlipman said, “I hung that rejection letter in my office to remind me why it was time to make a change. I became more motivated than ever to pursue business ownership. The desire to be my own boss and be in control of my lifestyle, fulfillment and success pushed me to take the leap.”

10.  Working with a franchise consultant, Schlipman was able to determine which opportunities best suited his interests, goals, strengths, and weaknesses. “I wasn’t initially interested in franchising,” Schlipman said. “I was actually dead set on buying an existing business, but after we discussed every option, franchising became the clear choice. I’m joining a team of experts with decades of success in the business.”

11.  What Window Genie offers Schlipman, he says, is an improved work-life balance and lifestyle that he couldn’t get from his corporate jobs in the past. “The corporate world can suck the energy and life out of you. As a business owner, I can be a better dad and happier person. Business ownership has given me the opportunity to reap the benefits of my hard work, and enjoy the freedom of being my own boss. I can work from home while making the final decisions that directly affect my success. All the top Window Genie owners told me it’s in my power to be successful if I’m aggressive and follow the system. I’m up for the task, I’m not afraid of a challenge.”

Company History

12.  Window Genie was founded in 1994 by Richard (Rik) Nonelle in Cincinnati, Ohio. When he was 29, Nonelle realized he no longer wanted to work for someone else and decided to start his own business. Nonelle ruled out something in the restaurant industry and was leaning toward something in the cleaning industry when a high school friend suggested he look into window cleaning. After doing extensive research, Nonelle discovered that there was a large window cleaning market. He took that as a sign and decided to start a window cleaning business.

13.  In the beginning, Nonelle only offered window washing, but after working out in the field he realized that home owners were willing to pay for other home services. Nonelle added gutter cleaning, concrete pressure washing, exterior siding cleaning, and many more home cleaning services.

14.  To keep up with demand, Nonelle began franchising the Window Genie concept in 1998. Window Genie continued to grow over the next few decades and in 2016, the company was acquired by Neighborly, formerly the Dwyer Group. Today, there are Window Genie locations across 30 states.

Entrepreneur’s Franchise 500

15.  Window Genie ranked No. 494 on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Window Genie 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 Window Genie’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:  112
• Outlets at the End of the Year:  127
• Net Change:  +15

2019

• Outlets at the Start of the Year:  127
• Outlets at the End of the Year:  130
• Net Change:  +3

2020

• Outlets at the Start of the Year:  130
• Outlets at the End of the Year:  125
• Net Change:  -5

Company-Owned

2018

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

2019

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

2020

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

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

• This representation is a historic financial performance representation about a subset of the franchise system’s existing outlets’ past performance during the calendar year beginning on January 1, 2019 and ending on December 31, 2019 (the “2019 Reporting Period”) and for the calendar year beginning on January 1, 2020 and ending on December 31, 2020 (the “2020 Reporting Period”).

• Neither the franchisor, its predecessor, nor its independent certified public accountants have audited or verified any of the sales figures reported to the predecessor. Franchisees are not required to use generally accepted accounting principles when reporting these figures.

• “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of or in connection with a Window Genie business, whether under any of the Marks or otherwise.

• Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that the franchisor authorizes in writing. Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).

• In the early months of 2020, the COVID-19 virus pandemic impacted local, regional, and national economies. New laws, rules, and governmental orders were issued in response to the virus outbreak. Certain services offered by the Window Genie businesses were deemed essential under such governmental orders and therefore Window Genie businesses were generally able to continue operating, although 17 businesses temporarily closed during late March and/or April for an average of 7.7 days.

• As of the date of the current Disclosure Document, 12 of those businesses have since resumed full operations. Although 5 of those businesses closed permanently, none due specifically to the impact of the pandemic.

• As of the date of the current Disclosure Document, the franchisor does not intend to make any changes to its business model as a result of the COVID-19 pandemic.

• Window Genie franchise businesses experience some seasonality in certain parts of the country. As a result, the business during the first calendar quarter of each year is historically slightly slower than during the remainder of the year.

Part 1 – Average and Median Gross Sales Per Job

• As of December 31, 2019, there were 130 Window Genie businesses in operation in the U.S., and as of December 31, 2020, there were 125 Window Genie businesses in operation in the U.S., all of which were franchised businesses.

• The below tables show the average and median Gross Sales Per Job data for the 2019 Reporting Period and for the 2020 Reporting Period for all businesses that were reporting sales for any part of the applicable Reporting Period.

• Part 1 of this Item 19 includes data from 102 businesses for the 2019 Reporting Period and 114 businesses for the 2020 Reporting Period (collectively, the “Reporting Businesses”), which were all in operation and reporting sales during any part of the applicable Reporting Period.

• Part 1 excludes data from businesses that did not report reliable data (i.e., 28 businesses were excluded for the 2019 Reporting Period and 11 businesses were excluded for the 2020 Reporting Period because they did not provide reliable data).

• The Reporting Businesses are divided into groups based on the level of Individual Business Average Gross Sales Per Job (as defined below) achieved during the Reporting Period (i.e., top 10%, 1st, 2nd, 3rd and 4th quartile, bottom 10%, and all (100%)).

A. Average and Median Gross Sales Per Job – 2019

Top 10%

• Average Gross Sales Per Job:  $514
• Highest Gross Sales Per Job:  $661
• Lowest Gross Sales Per Job:  $484
• Median Gross Sales Per Job:  $494
• Number in This Group:  10
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  3/30.0%

1st Quartile

• Average Gross Sales Per Job:  $472
• Highest Gross Sales Per Job:  $661
• Lowest Gross Sales Per Job:  $400
• Median Gross Sales Per Job:  $481
• Number in This Group:  26
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  12/46.2%

2nd Quartile

• Average Gross Sales Per Job:  $381
• Highest Gross Sales Per Job:  $394
• Lowest Gross Sales Per Job:  $330
• Median Gross Sales Per Job:  $372
• Number in This Group:  26
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  4/15.4%

3rd Quartile

• Average Gross Sales Per Job:  $310
• Highest Gross Sales Per Job:  $330
• Lowest Gross Sales Per Job:  $284
• Median Gross Sales Per Job:  $303
• Number in This Group:  26
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  8/30.8%

4th Quartile

• Average Gross Sales Per Job:  $262
• Highest Gross Sales Per Job:  $286
• Lowest Gross Sales Per Job:  $207
• Median Gross Sales Per Job:  $256
• Number in This Group:  24
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  7/29.2%

Bottom 10%

• Average Gross Sales Per Job:  $225
• Highest Gross Sales Per Job:  $244
• Lowest Gross Sales Per Job:  $207
• Median Gross Sales Per Job:  $229
• Number in This Group:  10
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  4/40.0%

100%

• Average Gross Sales Per Job:  $355
• Highest Gross Sales Per Job:  $661
• Lowest Gross Sales Per Job:  $207
• Median Gross Sales Per Job:  $330
• Number in This Group:  102
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  40/39.2%

B. Average and Median Gross Sales Per Job – 2020

Top 10%

• Average Gross Sales Per Job:  $545
• Highest Gross Sales Per Job:  $733
• Lowest Gross Sales Per Job:  $467
• Median Gross Sales Per Job:  $550
• Number in This Group:  11
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  5/45.5%

1st Quartile

• Average Gross Sales Per Job:  $464
• Highest Gross Sales Per Job:  $733
• Lowest Gross Sales Per Job:  $396
• Median Gross Sales Per Job:  $468
• Number in This Group:  29
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  11/37.9%

2nd Quartile

• Average Gross Sales Per Job:  $378
• Highest Gross Sales Per Job:  $395
• Lowest Gross Sales Per Job:  $326
• Median Gross Sales Per Job:  $358
• Number in This Group:  29
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  4/13.8%

3rd Quartile

• Average Gross Sales Per Job:  $311
• Highest Gross Sales Per Job:  $336
• Lowest Gross Sales Per Job:  $288
• Median Gross Sales Per Job:  $315
• Number in This Group:  29
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  11/37.9%

4th Quartile

• Average Gross Sales Per Job:  $257
• Highest Gross Sales Per Job:  $311
• Lowest Gross Sales Per Job:  $179
• Median Gross Sales Per Job:  $276
• Number in This Group:  27
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  13/40.7%

Bottom 10%

• Average Gross Sales Per Job:  $236
• Highest Gross Sales Per Job:  $250
• Lowest Gross Sales Per Job:  $179
• Median Gross Sales Per Job:  $228
• Number in This Group:  11
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  5/45.5%

100%

• Average Gross Sales Per Job:  $346
• Highest Gross Sales Per Job:  $733
• Lowest Gross Sales Per Job:  $179
• Median Gross Sales Per Job:  $333
• Number in This Group:  114
• Number and Percent That Attained or Exceeded the Average Gross Sales Per Job:  48/42.1%

• The franchisor calculated the Average Gross Sales Per Job as follows: (i) first, it calculated the average Gross Sales Per Job during the Reporting Period for each Reporting Business, based on information provided by the Reporting Businesses to the franchisor through its Software System (the “Individual Business Average Gross Sales Per Job”) and (ii) then the franchisor calculated the average and median of all Reporting Businesses’ Individual Business Average Gross Sales Per Job during the Reporting Period.

Part 2 – Recurring and Occasional Customers

• The below tables show the percentage of services provided that were performed for recurring customers versus the percentage of services performed for occasional customers for the 2019 Reporting Period and for the 2020 Reporting Period for all businesses that were in operation for at least 12 months as of the end of the applicable Reporting Period and reporting sales for the full applicable Reporting Period.

• Part 2 of this Item 19 includes data from 93 businesses for the 2019 Reporting Period and 93 businesses for the 2020 Reporting Period (collectively, the “Reporting Businesses”), which were all in operation and reporting sales during the entire applicable Reporting Period.

• Part 2 excludes the data with respect to the 2019 Reporting Period from (a) 28 businesses that opened in 2019 and therefore were not in operation and reporting sales for the full 2019 Reporting Period, (b) 2 businesses that were transferred to a new owner in 2019 and therefore were not in operation and reporting sales for the full 2019 Reporting Period, and (c) 7 businesses that did not report reliable data for the full 2019 Reporting Period.

• Part 2 excludes the data with respect to the 2020 Reporting Period from (a) 23 businesses that opened in 2020 and therefore were not in operation and reporting sales for the full 2020 Reporting Period, (b) 1 business that was transferred to a new owner in 2020 and therefore was not in operation and reporting sales for the full 2020 Reporting Period, and (c) 8 businesses that did not report reliable data for the full 2020 Reporting Period.

• The table showing 2019 Reporting Period data does not include data from 25 businesses that closed during the 2019 Reporting Period. Of the 25 businesses that closed during the 2019 Reporting Period, no businesses closed after having been in operation for less than 12 months.

• The table showing 2020 Reporting Period data does not include data from 28 businesses that closed during the 2020 Reporting Period. Of the 28 businesses that closed during the 2020 Reporting Period, 1 business closed after having been in operation for less than 12 months.

A. Recurring and Occasional/New Customers – 2019

Recurring

• Average Percentage:  41.6%
• Median Percentage:  46.1%
• Number of Reporting Businesses:  93
• Number and Percent That Attained or Exceeded the Average:  54/58.1%
• Number and Percent That Attained or Exceeded the Average:  47/51.0%

Occasional/New

• Average Percentage:  58.4%
• Median Percentage:  53.9%
• Number of Reporting Businesses:  93
• Number and Percent That Attained or Exceeded the Average:  39/41.9%
• Number and Percent That Attained or Exceeded the Average:  46/49.0%

B. Recurring and Occasional/New Customers – 2020

Recurring

• Average Percentage:  48.2%
• Median Percentage:  50.3%
• Number of Reporting Businesses:  93
• Number and Percent That Attained or Exceeded the Average:  51/54.8%
• Number and Percent That Attained or Exceeded the Average:  47/51.0%

Occasional/New

• Average Percentage:  51.8%
• Median Percentage:  49.7%
• Number of Reporting Businesses:  93
• Number and Percent That Attained or Exceeded the Average:  42/45.2%
• Number and Percent That Attained or Exceeded the Average:  46/49.0%

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

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