Zoom Drain Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $49,500
- The Initial Franchise Fee is $49,500 for a single-territory franchise.
- In the event that you wish to purchase a territory with a population greater than 300,000, you must also pay Zoom Drain $0.16 per additional person.
2. Payroll: $35,000 to $43,750
- This estimate includes amounts for general liability and workers’ compensation insurance premiums. This range does not include any owner’s salary or draw.
3. Initial Small Tools and Inventory of Supplies: $30,000 to $37,500
- This includes the required Vehicle stock list, the equipment, and supplies you will need to start your Franchised Business, including draining cleaning machines, cameras and other diagnostic equipment, parts inventory, and general plumbing tools.
- If, at the time you sign the Franchise Agreement, you already own equipment that meets Zoom Drain’s standards and specifications, and you wish to use that equipment in connection with the operation of the Franchised Business, you may do so, provided that you first secure Zoom Drain’s prior written approval.
4. Initial Advertising/Marketing Expenses: $15,000 to $18,750
- You are required to conduct an initial advertising and marketing campaign during the three months prior to the opening of your Franchised Business.
- This low estimate includes your required Initial Marketing Fee of $15,000 per territory prior to opening your Franchised Business. The high estimate reflects the cost of additional marketing efforts beyond the required initial advertising and marketing you may choose to do.
5. Building Lease, Improvements, Utilities, Supplies: $14,475 to $18,094
- You must find office space to lease that is within your Protected Territory. The size of the office should be approximately 1,000 square feet. The space you use should have sufficient parking for your Vehicles.
- This estimate does not include covered parking and assumes that all trucks will be parked outside.
- If you do not own or purchase real estate for the location of your Franchised Business, you will need to lease space from a landlord.
- You may be permitted to conduct the Franchised Business from your home, provided that doing so complies with applicable zoning regulations, the office space is significantly separate from the home, and you have ample space to park, at minimum, two service trucks.
- If you rent, the landlord will usually require you to pay the equivalent of one or two months’ rent. The range in the table above represents one month’s rent and a security deposit of two months’ rent.
- Rental rates or deposits on an unknown location cannot be predicted in advance. These costs will vary greatly depending on the metropolitan area where the Franchised Business will be located. These estimates are based on locations in and around the Philadelphia Metropolitan area.
- In most cases, Zoom Drain would expect franchisees to rent rather than purchase property.
- Depending on the specifics of the site you select, you may need to remodel the space to meet the needs of the Franchised Business.
- Zoom Drain will provide you with layout, drawings, and design of a typical Zoom Drain Business. The cost of construction, improvements, or building varies widely by the size of the space, the existing improvements, and local construction rates.
- Until a specific site is located and evaluated, a reliable estimate of costs cannot be projected.
- Sometimes you may receive a construction allowance from the landlord, or you may lease a location that was already built out in a suitable fashion and if so, the costs may be reduced accordingly.
6. Vehicles and Equipment Lease, Maintenance, Fuel, Insurance, Tolls: $13,500 to $16,875
- Before you open your Franchised Business, you are required to own, purchase, or lease two standard service trucks for use in connection with the Franchised Business.
- Zoom Drain strongly suggests that you lease the Vehicles, but you may acquire Vehicles by purchase, and you may acquire used Vehicles so long as they meet Zoom Drain’s standards, including being not more than 7 years old, are laid out according to Zoom Drain’s specifications, are free from rust, and are able to accommodate the basic inventory list.
- The figures assume you will lease the Vehicles.
- The high estimate assumes you will incur expenses to ship the Vehicles from the dealer to the location of your Franchised Business.
- Lease rates on an unknown specific make or model of the Vehicles from an unknown region of the country cannot be predicted in advance.
- These costs will vary greatly depending on the make and model of Vehicle selected and the prevailing lease rates in the metropolitan area where the Franchised Business will be located. These estimates are based on new Vehicles found in and around the Philadelphia Metropolitan area.
7. Recruiting and Hiring: $3,000 to $3,750
8. Office Supplies, Furniture, and Equipment: $5,000 to $6,250
- These figures include basic office furniture, fixtures, and basic business supplies.
9. Phones, Computer, Technology Expenses: $6,500 to $8,125
- You will need to have or install communications systems that comply with Zoom Drain’s specifications, including high speed Internet access, email capacity, and a dedicated telephone line.
10. Business Licenses and Permits, Deposits, and Pre-Paid Expenses: $1,000 to $6,000
- These amounts represent the business licenses and permits you will likely need to establish the Franchised Business. Your Vehicles will likely need to be registered with your state vehicle registration authority.
- It also includes an estimate of the deposits your utility companies are likely to require.
- The amount of your actual utility deposits will vary depending on the size of your facility space, the number of utilities your landlord requires you to pay, and the number of utility companies that require a deposit.
- Typically, utility providers require a deposit equal to 1 month’s average charge for that utility. You are required to obtain all necessary licenses and pay all required governmental fees to operate your Franchised Business.
11. Travel, Lodging for Training: $7,500 to $9,375
12. Professional Fees: $3,000 to $3,750
13. Additional Funds (3 months): $25,000 to $31,250
- This item estimates your startup expenses during the initial period of 3 months of the operation of your Franchised Business. These expenses include telephone and Internet utilities, additional products, and supplies, etc., and wages for 3 to 4 employees.
- These estimates do not include Royalty Fees, Brand Fund Contributions, or any other expenses which are already listed above and do not include an owner’s salary or draw.
14. Total: $208,475 to $252,969
- These figures were based on the experience of Zoom Drain’s affiliates, Zoom Drain Philadelphia, LLC, which has operated a similar business to the Zoom Drain Business in Philadelphia, Pennsylvania for over 25 years; Zoom Drain Charlotte, LLC; and Zoom Drain’s current franchisees. The expenses may differ in other parts of the country.
- Except as described above, none of the fees listed in this Item are refundable.