The Brothers That Just Do Gutters Franchise Costs, Fees, Revenues, Profits (2022 Review)

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

Section I – Estimated initial investment (franchise costs) for The Brothers That Just Do Gutters franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Brothers That Just Do Gutters franchise, based on Items 5 and 6 of the company’s 2022 FDD

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Section III – Number of franchised and company-owned The Brothers That Just Do Gutters 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 – News updates on The Brothers That Just Do Gutters franchise opportunity

Section V – Presentation and analysis of The Brothers That Just Do Gutters’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

2019, 2020, and 2021 actual gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, adjusted profit, percentage of annual gross sales from repeat customers, and percentage of lead to estimate conversions for the company-owned outlet operating from Poughkeepsie, New York since 1999

2019, 2020, and 2021 average gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, adjusted profit, and percentage of annual gross sales from repeat customers for the operational franchise outlets that were open and in operation prior to the commencement of the applicable calendar year

2019, 2020, and 2021 average percentage of lead to estimate conversions for the new and operational franchise outlets that were open and in operation during the applicable calendar year

Section VI – Key ratios, comparables, computations, and analyses for The Brothers That Just Do Gutters franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Brothers That Just Do Gutters Franchise Costs

The Brothers That Just Do Gutters (single territory) franchise costs, based on Item 7 of the company’s 2022 FDD:

Initial Franchise Fee: $49,500
Construction and Leasehold Improvements: $1,500 to $4,000
Storage Unit: $0 to $1,000
Equipment: $13,000 to $20,000
Initial Inventory: $1,000 to $3,000
Computer, Software, and Point-of-Sales System: $2,500 to $3,000
Service Vehicle: $5,500 to $11,500
Merchandise Kit: $2,500 to $3,500
Start-Up Marketing for 3 Months: $12,000 to $25,000
Insurance Deposits for 3 Months: $2,500 to $4,000
Travel for Initial Training: $2,000 to $3,500
Professional Fees: $1,500 to $3,000
Licenses and Permits: $750 to $1,500
Additional Funds for 3 Months: $30,000 to $39,000
Total The Brothers That Just Do Gutters Franchise Costs: $124,250 to $171,500

Section II – The Brothers That Just Do Gutters’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

The Brothers That Just Do Gutters’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

Initial Franchise Fee: $49,500
Royalty: greater of 6% of Gross Sales or Minimum Weekly Royalty Fee Requirement. The Royalty Rate is 10% of Gross Sales for Out of Territory Customers.
Brand Development Fund: 2% of Gross Sales
Franchisee Directed Local Marketing: 3% of Gross Sales per month, but not less than $2,000 per month, plus $500 per month for each Additional Territory

Section III – Number of Franchised and Company-Owned The Brothers That Just Do Gutters Outlets

Franchised

2019

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Outlets at the Start of the Year: 9
Outlets at the End of the Year: 11
Net Change: +2

2020

Outlets at the Start of the Year: 11
Outlets at the End of the Year: 12
Net Change: +1

2021

Outlets at the Start of the Year: 12
Outlets at the End of the Year: 38
Net Change: +26

Company-Owned

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

2021

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

Section IV – News Updates on The Brothers That Just Do Gutters Franchise

The Brothers That Just Do Gutters: Reinventing Contractor Service

Reliable Gutter Contractor Service

The Brothers That Just Do Gutters Did Not Rank on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Brothers That Just Do Gutters Franchise (Item 19, 2022 FDD)

Select Definitions

Gross Sales – means the total revenue derived by each outlet less sales tax, discounts, allowances, and returns.

Direct Cost of Goods and Services Sold – means the direct non-managerial and non-administrative cost of goods sold and labor incurred by an Outlet in directly performing and/or installing Approved Services and Products resulting in Gross Sales. Direct Cost of Goods and Services Sold do not include managerial expenses, including field management, administrative expenses, Disclosed Expenses, operating expenses, or general expenses including, but not limited to, credit card processing and bank fees.

Disclosed Expenses – refers to a limited selection of expenses as disclosed in the tables to this Item 19, comprised of the following select expense categories: rent, utilities, facility maintenance, marketing, office supply expenses, service vehicle expenses, recruiting, and franchisor related charges for Contact Center Fees, Technology Fees, Brand Development Fund Fees, and Royalty Fees.

Adjusted Profit – means Gross Profit less Disclosed Expenses. Adjusted Profit is not equal to net profit or income and, except as to Direct Cost of Goods and Services Sold and Disclosed Expenses, does not include the deduction of all other expenses incurred by a Brothers Gutters Business including, but not limited to, other operating expenses, interest, taxes, depreciation, and amortization.

New Franchise Outlet – means, as to a particular Calendar Year, a Franchise Outlet that for the first time opened and commenced operations during the Calendar Year.

Operational Franchise Outlet – means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year.

Qualified Single-Family Household – refers to and means a single-family household where the estimated annual household income exceeds $60,000.

Bases and Assumptions

The financial information was prepared on a basis consistent with generally accepted accounting principles during the respective Calendar Years. Data for the Franchise Outlets are based on financial information reported to the franchisor by its franchisees. The information in this analysis has not been audited, is based on historical financial data, and is not a forecast or projection of future financial performance.

Part 1 – Company-Owned Outlet

The Brothers That Just Do Gutters has one Company-Owned Outlet operating from Poughkeepsie, New York and one Company-Owned Outlet operating from Tyler, Texas.

The Company-Owned Outlet operating from Poughkeepsie, New York has been in operation since 1999 and operates in a market where The Brothers That Just Do Gutters brand maintains significant awareness among consumers and a significant market presence for over twenty years.

The territory in which the Poughkeepsie, New York Company-Owned Outlet operates includes approximately 293,843 Qualified Single-Family Households, with an Operating Territory comprising 4 Territories.

Below the franchisor reports select financial performance data for its Poughkeepsie, New York Company-Owned Outlet for the 2019, 2020, and 2021 Calendar Years.

The franchisor does not report data for its Tyler, Texas Company-Owned Outlet as it opened for business during the 2021 Calendar Year and it was not open for a full Calendar Year.

2019 Calendar Year

Gross Sales: $3,059,276 (100%)
Direct Cost of Goods Sold and Services Sold: $1,630,131 (52.44%)
Gross Profit: $1,429,145 (47.56%)
Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees): $605,788 (19.8%)
Adjusted Profit: $823,357 (27.76%)

2020 Calendar Year

Gross Sales: $3,138,234 (100%)
Direct Cost of Goods Sold and Services Sold: $1,601,483 (51.03%)
Gross Profit: $1,536,751 (48.97%)
Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees): $664,943 (21.19%)
Adjusted Profit: $871,808 (27.78%)

2021 Calendar Year

Gross Sales: $4,247,291 (100%)
Direct Cost of Goods Sold and Services Sold: $2,314,045 (54.5%)
Gross Profit: $1,933,246 (45.5%)
Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees): $921,443 (20.43%)
Adjusted Profit: $1,011,803 (25.07%)

Part 2 – Operational Franchise Outlets

During the 2019 Calendar Year there were a total of 7 Operational Franchise Outlets and 3 New Franchise Outlets. During the 2020 Calendar Year there were a total of 10 Operational Franchise Outlets and 2 New Franchise Outlets. During the 2021 Calendar Year there were a total of 11 Operational Franchise Outlets and 28 New Franchise Outlets.

The franchisor does not include any data for the 28 New Franchise Outlets that opened during the 2021 Calendar Year.

The franchisor does not include results for its Franchised Outlet that operated from a territory in Virginia Beach, VA and was an Operational Franchise Outlet in 2019 and 2020, as this Outlet discontinued its operations in 2021.

All Franchise Outlets operate within the equivalent of supplemented or multiple Territories with each Franchise Outlet’s aggregate territory size ranging from 100,000 to 300,000 Qualified Single-Family Households.

2019 Calendar Year (6 Operational Franchise Outlets)

Average Gross Sales: $952,051 (100%)
Average Direct Cost of Goods Sold and Services Sold: $455,415 (47.8%)
Average Gross Profit: $496,636 (52.2%)
Average Disclosed Expenses (see definition above for list of expenses included): $202,987 (21.3%)
Average Adjusted Profit: $293,648 (30.8%)

2020 Calendar Year (9 Operational Franchise Outlets)

Average Gross Sales: $1,214,388 (100%)
Average Direct Cost of Goods Sold and Services Sold: $560,252 (46.1%)
Average Gross Profit: $654,135 (53.9%)
Average Disclosed Expenses (see definition above for list of expenses included): $261,512 (21.5%)
Average Adjusted Profit: $392,623 (32.3%)

2021 Calendar Year (11 Operational Franchise Outlets)

Average Gross Sales: $1,715,217 (100%)
Average Direct Cost of Goods Sold and Services Sold: $815,722 (47.6%)
Average Gross Profit: $899,495 (52.4%)
Average Disclosed Expenses (see definition above for list of expenses included): $382,509 (22.3%)
Average Adjusted Profit: $517,259 (30.2%)

Part 3 – Percentage of Annual Gross Sales From Repeat Customers

Company-Owned Outlet

2019 Percentage of Annual Gross Sales From Repeat Customers: 17%
2020 Percentage of Annual Gross Sales From Repeat Customers: 16.93%
2021 Percentage of Annual Gross Sales From Repeat Customers: 10%

Average for Operational Franchise Outlets

2019 Percentage of Annual Gross Sales From Repeat Customers: 12.3%
2020 Percentage of Annual Gross Sales From Repeat Customers: 6.2%
2021 Percentage of Annual Gross Sales From Repeat Customers: 4.9%

Part 4 – Percentage of Lead to Estimate Conversions

Lead to Estimate conversions refer to the percentage of Leads that request a formal estimate for the potential sale and performance of Approved Services and Products.

Inbound leads that do not contact the franchisor’s approved call center are not monitored by the franchisor and are not included in these conversion calculations.

Company-Owned Outlet

2019 Percentage of Lead to Estimate Conversions: 90%
2020 Percentage of Lead to Estimate Conversions: 89%
2021 Percentage of Lead to Estimate Conversions: 90%

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Average for New and Operational Franchise Outlets

2019 Percentage of Lead to Estimate Conversions: 84.1%
2020 Percentage of Lead to Estimate Conversions: 85.3%
2021 Percentage of Lead to Estimate Conversions: 82.5%

Section VI – The Brothers That Just Do Gutters Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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FDD Talk: The Brothers That Just Do Gutters Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review)

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Section I – The Brothers That Just Do Gutters Franchise Costs

Section II – The Brothers That Just Do Gutters’ Initial Franchise Fee, Royalty Fee, and Marketing Fee