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

• Section I – Estimated initial investment (franchise costs) for a Grasons Estate Sales franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Grasons Estate Sales franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Grasons Estate Sales outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Grasons Estate Sales franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Grasons Estate Sales’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• fiscal year 2021 average, median, highest, and lowest gross sales for the top 25%, mid-upper 25%, mid-lower 25%, and bottom 25% of the 28 Grasons Estate Sales franchises open as of December 31, 2021

• franchise opening (month and year), population in territory, fiscal year 2021 gross sales, and number of sales in fiscal year 2021 for the 28 Grasons Estate Sales franchises open as of December 31, 2021

• Section VI – Key ratios, comparables, computations, and analyses for the Grasons Estate Sales franchise opportunity (exclusive content for Platinum subscribers)

Section I – Grasons Estate Sales Franchise Costs

• Grasons Estate Sales franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000 to $40,000
• Computer Systems:  $450 to $5,900
• Insurance:  $500 to $3,000
• Vehicle:  $0 to $3,000
• Office Expenses/Supplies:  $950 to $1,200
• Licenses and Permits:  $500 to $1,500
• Dues and Subscriptions:  $1,000 to $3,000
• Professional Fees (lawyer, accountant, etc.):  $0 to $7,500
• Travel, Lodging, and Meals for Initial Training:  $1,500 to $2,000
• Additional Funds for First 3 Months:  $4,000 to $12,000
• Estimated Total Franchise Costs:  $38,900 to $79,100

Section II – Grasons Estate Sales’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Grasons Estate Sales’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000 ($30,000 for your second and each additional Franchise)
• Royalty Fee:  6.5% of Gross Sales during your first six months of operation; thereafter, the greater of $500 per month or 6.5% of Gross Sales
• Marketing Fund Contribution:  1% of Gross Sales during your first six months of operation; thereafter, the greater of $250 per month or 1% of Gross Sales
• Local Advertising:  reasonable amount up to $500 per month (currently, approximately $250 a month)

Section III – Number of Franchised and Company-Owned Grasons Estate Sales Outlets

Franchised

2019

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  22
• Net Change:  -1

2020

• Outlets at the Start of the Year:  22
• Outlets at the End of the Year:  25
• Net Change:  +3

2021

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  28
• Net Change:  +3

Company-Owned

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

2021

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

Section IV – Background Information on the Grasons Estate Sales Franchise

17 Things You Need to Know About the Grasons Estate Sales Franchise

Shares Tips for People Shopping Estate Sales

1.  Grasons Estate Sales has an entire section on its website dedicated to helping estate sale shoppers. The website also lists all of the current estate sales being handled by Grasons so that shoppers can check any that may be in their local area. Each estate sale listing also features a number of high-quality photos showing off some of the goods that are available.

2.  The first tip from Grasons is that shoppers need to know that estate sales are vastly different from garage sales. Garage sales typically occur when a family wants to purge some belongings they’ve outgrown, to help make a little extra pocket money, or to help eliminate unwanted items before a move. An estate sale, on the other hand, typically happens after one of the three Ds – death, divorce, or debt. Estate sales are more formal than garage sales and typically have more unique items, including antiques and one-of-a-kind pieces.

3.  Grasons says that the best way to get first dibs on the best items at an estate sale is to show up on the first day of the sale. If possible, try to wait in line before the doors even open. Another big difference between an estate sale and a garage sale is that there is no haggling. Typically, the listed price is what you’ll have to pay, especially on the first day of a sale. Sometimes, prices are open for negotiations on the final day of an estate sale.

4.  As a final tip, Grasons says to ask the people holding the estate sale if other items from other parts of the estate are for sale. For example, shoppers should ask about any items outside, in the garage, or the backyard. Grasons says shoppers shouldn’t be shy to ask about everything because most things in the estate will be up for sale, including window treatments and lighting.

Reveals Best-Selling Items at Estate Sales

5.  Grasons Estate Sales posted an article on its blog covering what the best-selling items are at most estate sales. Of course, each estate sale has different items, but in general, the best-selling items are artwork, books, jewelry, and furniture.

6.  Artwork is always a top seller at estate sales and many hidden gems have been discovered. Original art and vintage art that boast signatures are attendees’ favorites. Shoppers also like that most artwork from estate sales are already framed.

7.  Estate sales are treasure troves for books as many people with large estates had extensive libraries. Most local estate sale shoppers are looking for first editions, which Grasons says are found quite often.

8.  New furniture is some of the most expensive items for a home, and estate sales are great places to look for quality pieces at a discounted price. Many of the furniture pieces from estate sales are from higher-end designers.

9.  Jewelry pieces are staples of estate sales and they can be had for much less than a brand new piece. Additionally, shoppers often find one-of-a-kind and rare jewelry pieces at estate sales.

Offers Services Beyond Estate Sales

10.  Grasons Estate Sales does much more than handling estate sales. The company also provides home staging, moving and downsizing services, as well as relocation services.

11.  Home staging services include partial to full home staging exclusive to realtors, sellers, relocating families, and new builders. Grasons’ team of professional stagers specialize in organizing and staging a home with furnishings and accessories that will make the home more desirable to potential buyers. Grasons offers the following home staging services:

• Stage home with existing furniture;
• Stage home with new furniture and accessories;
• Remove unnecessary items from the home;
• Market the home to potential home buyers via Grasons’ contacts;
• Market the home to thousands of potential buyers via an estate sale;
• Work with HOA and location specific rules and guidelines;
• Perform an estate sale with current home contents, empty home, and stage for potential sale;
• Average time your home is on the market after Grasons’ staging is less than 30 days.

12.  Instead of having your own garage sale when moving or downsizing, Grasons can help you put on a more professional and organized sale. Using Grasons’ services helps maximize profits because professionals organize, research, price, market, and hold the sale for clients.

13.  Besides helping people sell off their items, Grasons will also help clients move the belongings that they want to keep to a new location. Grasons can also facilitate the relocation process between multiple parties.

Company History

14.  Grasons Estate Sales was founded in 2013 by Simone Kelly in California. Kelly had worked for decades in the real estate industry and noticed that there was a growing need for estate sales management. Grasons has onsite service providers who are tasked with managing the tangible responsibilities of selling all of the homeowner’s goods and personal items, and also in keeping a potentially emotional situation calm and manageable for the client.

15.  After two years of successfully growing Grasons around Southern California, Kelly decided to start franchising the concept. In 2015, Simone hired Franchise Marketing Systems to develop the Grasons model as a franchise. Franchise Marketing Systems developed the operations, training, and program documents that were needed to teach the processes inherent in operating the Grasons franchise model.

16.  Within two years, Kelly grew Grasons to 19 locations, but the company’s growth has been fairly moderate. Most Grasons locations are in California, with a handful of locations in Arizona, Illinois, Indiana, and Ohio. Grasons Estate Sales is currently seeking franchisees around the United States.

Entrepreneur’s Franchise 500

17.  Grasons Estate Sales did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Grasons Estate Sales Franchise (Item 19, 2022 FDD)

Part 1 – FY 2021 Gross Sales for Franchises Operating All of FY 2021

Top 25% of Franchises by Gross Sales

• Average Gross Sales:  $755,123
• Median Gross Sales:  $735,056
• Number and Percentage of Franchises Meeting or Exceeding Average:  2 of 7 (29%)
• Lowest Gross Sales:  $511,724
• Highest Gross Sales:  $1,072,122

Mid-Upper 25% of Franchises by Gross Sales

• Average Gross Sales:  $343,128
• Median Gross Sales:  $311,820
• Number and Percentage of Franchises Meeting or Exceeding Average:  3 of 7 (43%)
• Lowest Gross Sales:  $232,995
• Highest Gross Sales:  $480,488

Mid-Lower 25% of Franchises by Gross Sales

• Average Gross Sales:  $170,672
• Median Gross Sales:  $148,535
• Number and Percentage of Franchises Meeting or Exceeding Average:  3 of 7 (43%)
• Lowest Gross Sales:  $134,201
• Highest Gross Sales:  $222,177

Bottom 25% of Franchises by Gross Sales

• Average Gross Sales:  $77,907
• Median Gross Sales:  $63,313
• Number and Percentage of Franchises Meeting or Exceeding Average:  3 of 7 (43%)
• Lowest Gross Sales:  $33,313
• Highest Gross Sales:  $127,084

Top 50% of Franchises by Gross Sales

• Average Gross Sales:  $549,125
• Median Gross Sales:  $496,106
• Number and Percentage of Franchises Meeting or Exceeding Average:  6 of 14 (43%)

Bottom 50% of Franchises by Gross Sales

• Average Gross Sales:  $124,289
• Median Gross Sales:  $130,643
• Number and Percentage of Franchises Meeting or Exceeding Average:  8 of 14 (57%)

Part 2 – FY 2021 Gross Sales and Other Data for Each Franchise Outlet Operating All of FY 2021

Outlet 1

• Franchise Opening (Month/Year):  June 2018
• Population in Territory:  561,000
• FY 2021 Gross Sales:  $109,145
• Number of Sales in FY 2021:  20

Outlet 2

• Franchise Opening (Month/Year):  October 2014
• Population in Territory:  1,020,637
• FY 2021 Gross Sales:  $623,237
• Number of Sales in FY 2021:  78

Outlet 3

• Franchise Opening (Month/Year):  January 2015
• Population in Territory:  938,000
• FY 2021 Gross Sales:  $232,995
• Number of Sales in FY 2021:  30

Outlet 4

• Franchise Opening (Month/Year):  February 2015
• Population in Territory:  2,078,952
• FY 2021 Gross Sales:  $916,737
• Number of Sales in FY 2021:  88

Outlet 5

• Franchise Opening (Month/Year):  March 2015
• Population in Territory:  1,488,231
• FY 2021 Gross Sales:  $691,914
• Number of Sales in FY 2021:  74

Outlet 6

• Franchise Opening (Month/Year):  April 2015
• Population in Territory:  1,154,000
• FY 2021 Gross Sales:  $511,724
• Number of Sales in FY 2021:  55

Outlet 7

• Franchise Opening (Month/Year):  July 2015
• Population in Territory:  2,733,029
• FY 2021 Gross Sales:  $1,072,122
• Number of Sales in FY 2021:  36

Outlet 7

• Franchise Opening (Month/Year):  August 2015
• Population in Territory:  441,060
• FY 2021 Gross Sales:  $735,056
• Number of Sales in FY 2021:  75

Outlet 8

• Franchise Opening (Month/Year):  June 2018
• Population in Territory:  725,991
• FY 2021 Gross Sales:  $311,820
• Number of Sales in FY 2021:  46

Outlet 9

• Franchise Opening (Month/Year):  September 2016
• Population in Territory:  1,200,000
• FY 2021 Gross Sales:  $222,177
• Number of Sales in FY 2021:  23

Outlet 10

• Franchise Opening (Month/Year):  October 2016
• Population in Territory:  765,000
• FY 2021 Gross Sales:  $480,488
• Number of Sales in FY 2021:  33

Outlet 11

• Franchise Opening (Month/Year):  May 2017
• Population in Territory:  2,365,202
• FY 2021 Gross Sales:  $194,370
• Number of Sales in FY 2021:  20

Outlet 12

• Franchise Opening (Month/Year):  November 2017
• Population in Territory:  1,047,000
• FY 2021 Gross Sales:  $735,070
• Number of Sales in FY 2021:  77

Outlet 13

• Franchise Opening (Month/Year):  November 2017
• Population in Territory:  541,781
• FY 2021 Gross Sales:  $148,535
• Number of Sales in FY 2021:  21

Outlet 14

• Franchise Opening (Month/Year):  August 2018
• Population in Territory:  856,000
• FY 2021 Gross Sales:  $213,258
• Number of Sales in FY 2021:  8

Outlet 15

• Franchise Opening (Month/Year):  August 2018
• Population in Territory:  820,000
• FY 2021 Gross Sales:  $264,363
• Number of Sales in FY 2021:  19

Outlet 16

• Franchise Opening (Month/Year):  December 2018
• Population in Territory:  846,006
• FY 2021 Gross Sales:  $63,313
• Number of Sales in FY 2021:  6

Outlet 17

• Franchise Opening (Month/Year):  October 2019
• Population in Territory:  1,163,671
• FY 2021 Gross Sales:  $134,201
• Number of Sales in FY 2021:  10

Outlet 18

• Franchise Opening (Month/Year):  January 2020
• Population in Territory:  412,915
• FY 2021 Gross Sales:  $267,469
• Number of Sales in FY 2021:  34

Outlet 19

• Franchise Opening (Month/Year):  January 2020
• Population in Territory:  559,723
• FY 2021 Gross Sales:  $403,060
• Number of Sales in FY 2021:  49

Outlet 20

• Franchise Opening (Month/Year):  February 2020
• Population in Territory:  762,148
• FY 2021 Gross Sales:  $143,935
• Number of Sales in FY 2021:  25

Outlet 21

• Franchise Opening (Month/Year):  December 2020
• Population in Territory:  770,000
• FY 2021 Gross Sales:  $127,084
• Number of Sales in FY 2021:  32

Outlet 22

• Franchise Opening (Month/Year):  December 2020
• Population in Territory:  770,000
• FY 2021 Gross Sales:  $127,084
• Number of Sales in FY 2021:  32

Outlet 23

• Franchise Opening (Month/Year):  March 2021
• Population in Territory:  876,000
• FY 2021 Gross Sales:  $33,313
• Number of Sales in FY 2021:  2

Outlet 24

• Franchise Opening (Month/Year):  January 2021
• Population in Territory:  676,000
• FY 2021 Gross Sales:  $58,212
• Number of Sales in FY 2021:  11

Outlet 25

• Franchise Opening (Month/Year):  February 2021
• Population in Territory:  597,563
• FY 2021 Gross Sales:  $38,707
• Number of Sales in FY 2021:  8

Outlet 26

• Franchise Opening (Month/Year):  March 2021
• Population in Territory:  848,820
• FY 2021 Gross Sales:  $441,700
• Number of Sales in FY 2021:  44

Outlet 27

• Franchise Opening (Month/Year):  September 2020
• Population in Territory:  558,911
• FY 2021 Gross Sales:  $138,225
• Number of Sales in FY 2021:  23

Outlet 28

• Franchise Opening (Month/Year):  February 2021
• Population in Territory:  968,754
• FY 2021 Gross Sales:  $115,572
• Number of Sales in FY 2021:  18

• “Gross Sales” is the gross sales price of all personal property sold, directly or indirectly, by you or your owners by any method including, without limitation, (a) sales at physical locations; (b) consignment/auction sales; and (c) sales advertised or marketed by any media including on the Internet (or any other electronic method), or by classified ad, flyer, brochure, and catalog.

• Gross Sales do not include bona fide refunds given to clients and sales taxes properly remitted to the taxing authority. Credit card charges may not be deducted from Gross Sales.

• “Franchise Opening Month/Year” is the month and year that the Franchise first opened for business. In certain instances, a Franchise may have been opened by a different franchisee and then transferred to the current owner.

• “Population” is the population of the Franchise’s Territory per the U.S. Census Bureau Population and Housing Bureau reports between 2007 and 2010.

• “Number of Sales in 2021” is the number of estate or business liquidation sales for each Franchise during FY 2021.

• Revenues, costs, and profits can vary widely between Franchises and may depend on the size and demographic considerations of your Territory as well as your business experience and acumen.

• Grasons Estate Sales prepared the information in the table above from information provided by its franchisees. These reported results are not audited, and Grasons Estate Sales has not independently verified data provided by its franchisees, although Grasons Estate Sales believes it to be accurate.

• The information provided herein is an historic financial performance representation and is not a forecast of future potential performance.

• You will incur expenses in the operation of your Franchise, which are not included in this Item 19, such as payroll and benefits, bank charges, advertising costs, accounting and management costs, licenses and permits, printing and supplies, training expense, telephone expense, insurance, maintenance and utilities, debt service, taxes, and royalties and other amounts due to Grasons under the Franchise Agreement

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

Section VI – ABC Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️