In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a House Doctors franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a House Doctors franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section III – Number of franchised and company-owned House Doctors outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the House Doctors franchise opportunity
Section V – Presentation and analysis of House Doctors’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 total, average, median, highest, and lowest gross sales for the top quartile, median, bottom quartile, and all 18 House Doctors franchised businesses that responded to the franchisor’s survey and reported gross sales for all 12 months in 2022
- 2022 average material cost, direct labor cost, marketing spend, merchant fees, and indirect labor (all as a percentage of gross sales) for the 18 House Doctors franchised businesses that responded to the franchisor’s survey and reported key performance metrics for all 12 months in 2022
Section VI – Key ratios, comparables, computations, and analyses for the House Doctors franchise opportunity (exclusive content for Platinum subscribers)
Section I – House Doctors Franchise Costs
- House Doctors franchise costs, based on Item 7 of the company’s 2023 FDD:
- Franchise Fee: $65,000
- Vehicle: $1,500 to $5,000
- Real Estate and/or Leasehold Improvements: $0 to $3,000
- Equipment and Supplies: $1,250 to $4,500
- Insurance: $2,000 to $5,000
- Signage: $3,000 to $4,000
- Technology Fee: $5,000
- Grand Opening: $2,500 to $5,000
- Training Expenses: $2,000 to $4,000
- Licenses/Bonds: $100 to $1,500
- Professional Fees: $1,500 to $3,000
- Additional Funds (3 months): $17,500 to $40,000
- Total Estimated House Doctors Franchise Costs: $101,350 to $145,000
Section II – House Doctors’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- House Doctors’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Franchise Fee: $65,000
- Royalty: 6% of Gross Sales; $150 per week, minimum
- Marketing Fund: 2% of Gross Sales
- Advertising Cooperative Fee: up to greater of $10,000 or 2% of Gross Sales per year
Section III – Number of Franchised and Company-Owned House Doctors Outlets
Franchised
2020
- Outlets at the Start of the Year: 34
- Outlets at the End of the Year: 37
- Net Change: +3
2021
- Outlets at the Start of the Year: 37
- Outlets at the End of the Year: 40
- Net Change: +3
2022
- Outlets at the Start of the Year: 40
- Outlets at the End of the Year: 46
- Net Change: +6
Company-Owned
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
2022
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- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the House Doctors Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the House Doctors Franchise (Item 19, 2023 FDD)
- In January 2023, a survey was sent to all active Franchisees who had operated and reported Gross Sales for at least 12 months in the system, which requested key performance metrics, such as Gross Sales, labor costs, marketing costs, and materials costs.
- The data presented in this Item 19 is representative of the 18 responses that were provided, which represent 78.26% of all active Franchised Businesses (23). Four Franchised Businesses began operations in 2022, but did not operate for the full 12 months of 2022.
- “Gross Sales” means the total of all monies and receipts you derive in connection with the Business. Gross Sales does not include (i) promotional allowances or rebates paid to Franchisee in connection with its purchase of products or supplies; (ii) sales, use, merchants’ or other taxes measured on the basis of the gross revenues of the Business imposed by governmental authorities directly on sales or use and collected from customers, if the taxes are added to the selling price of your goods and services and are in fact paid by you to the appropriate governmental authorities; or (iii) the value of any coupons duly issued and approved by you, or any bona fide discounts or customer refunds approved by House Doctors.
Part 1 – Statement of Gross Sales Per Franchised Business During the 2022 Fiscal Year
Top Quartile
- Total Gross Sales: $5,793,173.53
- Average Gross Sales: $1,448,293.38
- High Gross Sales: $2,072,405.59
- Low Gross Sales: $1,015,246.26
- Number of Franchised Businesses: 4
Median
- Total Gross Sales: $4,949,311.25
- Average Gross Sales: $494,931.12
- High Gross Sales: $1,009,784.11
- Low Gross Sales: $323,604.89
- Number of Franchised Businesses: 10
Bottom Quartile
- Total Gross Sales: $942,688.16
- Average Gross Sales: $235,672.04
- High Gross Sales: $316,463.96
- Low Gross Sales: $157,644.41
- Number of Franchised Businesses: 4
Total
- Total Gross Sales: $10,418,879.89
- Average Gross Sales: $621,366.48
- High Gross Sales: $2,072,405.59
- Low Gross Sales: $157,644.41
- Number of Franchised Businesses: 18
- These numbers are representative of franchised Businesses that responded to the survey and reported all 12 months in 2022.
- All data pulled from franchisee-submitted reports and assumed to be accurate.
Part 2 – Additional Performance Survey Results of the 18 Franchised Businesses Detailed in Part 1
- Materials Cost as a percentage of Gross Sales: 29.30%
- Direct Labor Cost as a percentage of Gross Sales: 27.40%
- Marketing Spend as a percentage of Gross Sales: 5.00%
- Merchant Fees as a percentage of Gross Sales: 0.90%
- Indirect Labor as a percentage of Gross Sales: 17.30%
- These numbers are representative of franchised Businesses that responded to the survey and reported all 12 months in 2022.
- All data pulled from survey response data and assumed to be accurate.
- This information has not been separately audited or verified by an independent certified public accountant, and it may not have been prepared on a basis consistent with generally accepted accounting principles.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
Section VI – House Doctors Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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