In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Best Choice Roofing franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Best Choice Roofing franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Best Choice Roofing 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 Best Choice Roofing franchise opportunity
Section V – Presentation and analysis of Best Choice Roofing’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 actual, average, and median gross revenue for the 18 Best Choice Roofing affiliate locations that were open and operating as of December 31, 2021 and operating for the entire 2022 calendar year
- 2022 average gross revenue, cost of construction, gross profit, disclosed expenses, gross profit less disclosed expenses, estimated sales manager base salary & bonuses, and estimated gross profit less disclosed and estimated expenses – owner-operator for the 18 Best Choice Roofing affiliate locations that were open and operating as of December 31, 2021 and operating for the entire 2022 calendar year
- average annual gross revenue for the 13 Best Choice Roofing affiliate locations that were open and operating for 2 years as of December 31, 2022 during their first 12 months of operation (Months 1-12) and second 12 months of operation (Months 13-24)
- 2022 average, median, high, and low sub-contractor labor, materials, and gross profit margin for the 18 Best Choice Roofing affiliate locations that were open and operating as of December 31, 2021 and operating for the entire 2022 calendar year
- 2022 total jobs, and average, median, high, and low ticket price for all Best Choice Roofing affiliate locations that operated during the 2022 calendar year
- 2018, 2019, 2020, 2021, and 2022 affiliate locations gross revenues, corporate outlet gross revenues, and total gross revenues for all Best Choice Roofing locations that operated during the applicable calendar year
Section VI – Key ratios, comparables, computations, and analyses for the Best Choice Roofing franchise opportunity (exclusive content for Platinum subscribers)
Section I – Best Choice Roofing Franchise Costs
- Best Choice Roofing franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $59,500
- Travel and Living Expenses While Attending Initial Training: $1,000 to $2,000
- Rent and Security Deposit (3 Months): $3,000 to $7,000
- Leasehold Improvements: $0 to $15,000
- Equipment: $0 to $1,000
- Furniture, Office Equipment, and Software: $3,500 to $9,000
- Vehicle: $0 to $12,500
- Signs: $500 to $1,000
- Licenses: $200 to $3,000
- Grand Opening Marketing: $5,000 to $10,000
- Insurance: $2,500 to $3,500
- Owens Corning Membership: $2,500
- Professional Fees (Legal and Accounting): $1,000 to $3,000
- Initial Marketing Materials: $11,000
- New Hire Kits and Uniforms: $500 to $3,000
- Call Center Fee: $3,300
- 101K TV Fee: $210
- Additional Funds (for First 3 Months): $20,000 to $50,000
- Total Estimated Best Choice Roofing Franchise Costs: $113,710 to $196,510
Section II – Best Choice Roofing’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Best Choice Roofing’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $59,500
- Royalty: 6% of Gross Sales, subject to weekly minimums
- Brand Fund Contribution: up to 3% of Gross Sales; currently, 1% of Gross Sales
- Market Cooperative Contribution: as determined by co-op; currently, none. However, once co-op formed, not less than 1% of Gross Sales.
Section III – Number of Franchised and Company-Owned Best Choice Roofing Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- 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
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 6
- Net Change: +6
Company-Owned
2020
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 29
- Net Change: +10
2021
- Outlets at the Start of the Year: 29
- Outlets at the End of the Year: 33
- Net Change: +4
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 33
- Outlets at the End of the Year: 35
- Net Change: +2
Section IV – News Updates on the Best Choice Roofing Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Best Choice Roofing Franchise (Item 19, 2023 FDD)
Part 1 – 2022 Gross Revenue from Affiliate Locations
- The chart below includes the total Gross Revenue earned by each Affiliate Location for the 2022 calendar year. This chart only includes the Affiliate Locations that were open and operating as of December 31, 2021 and operating for the entire 2022 calendar year.
2022 Gross Revenue
- Affiliate 13: $13,413,417
- Affiliate 16: $10,532,003
- Affiliate 1: $9,006,774
- Affiliate 9: $8,720,698
- Affiliate 15: $8,199,430
- Affiliate 11: $7,239,028
- Affiliate 4: $7,114,530
- Affiliate 7: $6,558,319
- Affiliate 2: $5,740,089
- Affiliate 14: $5,561,308
- Affiliate 8: $5,486,457
- Affiliate 17: $5,160,515
- Affiliate 10: $5,091,756
- Affiliate 3: $4,821,141
- Affiliate 5: $3,431,166
- Affiliate 12: $3,140,288
- Affiliate 6: $2,223,038
- Affiliate 18: $1,123,115
- Average Gross Revenue: $6,253,504
- Number of Locations That Met or Exceeded the Average: 9
- Percentage of Locations That Met or Exceeded the Average: 50%
- Median Gross Revenue: $5,650,699
Part 2 – 2022 Average Profit and Loss Statement from Affiliate Locations
- Each of Best Choice Roofing’s Affiliate Locations is operated as an executive business model in that the owner does not take part in the day-to-day management of the business. This is contrary to an owner-operator business model in which the owner of the business participates heavily in the daily operations, management, or marketing of the business. Each of Best Choice Roofing’s Affiliate Locations employs managers and sales representatives.
- However, franchisees may operate their Best Choice Roofing franchise under either of these models. Franchisees may have a semi-absentee role with their franchise, employing key individuals to manage the sales and operation aspects of the business. On the other hand, franchisees may run their business as an owner-operator, taking a full-time role within the business themselves.
- If any of the franchisees operate their business as an owner-operator, Best Choice Roofing anticipates that (i) their payroll expenses and net profit would be significantly lower than the amounts disclosed below. While they may save on payroll expenses, an owner-operator franchisee will likely not scale their business as quickly due to their own personal capacity.
- The chart below includes the average Gross Revenue, Costs of Construction, and certain Disclosed Expenses experienced by the 18 Affiliate Locations that operated for the entire 2022 calendar year (January 1, 2022 to December 31, 2022). To be included in this chart, each Affiliate Location had to have been open and operating as of December 31, 2021.
Averages Across Affiliate Locations
Gross Revenue: $6,253,504 (100.0%)
Cost of Construction
- Materials (After Rebates from Suppliers): $2,140,306 (34.2%)
- Sub-Contractor Labor: $1,395,624 (22.3%)
- Total Cost of Construction: $3,535,929 (56.5%)
Gross Profit: $2,717,575 (43.5%)
Disclosed Expenses
- Background Checks: $3,187 (0.1%)
- Bank Charges and Merchant Fees: $4,146 (0.1%)
- Commissions: $562,815 (9.0%)
- CRM and Tech: $5,985 (0.1%)
- Insurance – Property, Workers Comp, and Liability: $39,508 (0.6%)
- Internet and Telephone: $5,006 (0.1%)
- Customer Call Center: $15,276 (0.2%)
- Marketing Materials: $17,816 (0.3%)
- Office Supplies: $6,594 (0.1%)
- Office – Lease: $26,536 (0.4%)
- Administrative Payroll: $92,500 (1.5%)
- Utilities: $3,749 (0.1%)
- Bonus: $179,296 (2.9%)
- Total Disclosed Expenses: $962,414 (15.4%)
Average Gross Profit Less Disclosed Expenses: $1,755,161 (28.1%)
Estimated Expenses
- Estimated Contract Entry Fees: $31,268 (0.5%)
- Estimated QuickBooks & Right Networks Hosting Fees: $4,800 (0.1%)
- Estimated Royalty Fees: $375,210 (6.0%)
- Estimated Brand Fund Contributions: $62,535 (1.0%)
- Estimated Owens Corning Annual Membership Fee: $2,500 (0.04%)
- Total Estimated Expenses: $476,313 (7.6%)
Average Gross Profit Less Disclosed and Estimated Expenses: $1,278,848 (20.5%)
Estimated Sales Manager Base Salary and Bonuses: $83,899 (1.3%)
Estimated Average Gross Profit Less Disclosed and Estimated Expenses – Owner Operator: $1,362,747 (21.8%)
Part 3 – 2022 Average Start-up Gross Revenue Across First 24 Months of Business
- The chart below displays the average annual Gross Revenue for the 13 Affiliate Locations that were open and operating for 2 years as of December 31, 2022 during their first 12 months of operation (Months 1-12) and second 12 months of operation (Months 13-24).
Months 1-12 of Operation
- Average Gross Revenue: $4,802,413
- Number and Percent That Met or Exceeded Average: 3 (23%)
Months 13-24 of Operation
- Average Gross Revenue: $6,592,107
- Number and Percent That Met or Exceeded Average: 5 (38%)
Part 4 – 2022 Average Gross Profit Margins
- The charts below represent the 2022 calendar year averages of Sub-Contractor Labor and Materials (both comprising Cost of Construction), and the resulting Gross Profit Margins given those costs, for 18 Affiliate Locations that were open for the entire 2022 calendar year.
Sub-Contractor Labor
- Number of Locations: 18
- Low: 17.8%
- High: 51.5%
- Median: 30.7%
- Average: 22.3%
- Number and Percent That Met or Exceeded the Average: 7 (38.9%)
Materials
- Number of Locations: 18
- Low: 17.3%
- High: 50.3%
- Median: 32.4%
- Average: 39.1%
- Number and Percent That Met or Exceeded the Average: 8 (44.4%)
Gross Profit Margin
- Number of Locations: 18
- Low: 15.3%
- High: 51.7%
- Median: 33.0%
- Average: 38.6%
- Number and Percent That Met or Exceeded the Average: 8 (44.4%)
Part 5 – 2022 Average Jobs and Ticket Price
- The chart below represents the average price per job (“Ticket Price”) for all Affiliate Locations that operated during the 2022 calendar year (not just Affiliate Locations that operated for the entire 2022 calendar year).
- During the 2022 calendar year, the Affiliate Locations signed a total of 9,228 jobs with customers. This includes jobs signed by the 5 Affiliate Locations that opened during the 2022 calendar year.
- Total Jobs: 9,228
- High Ticket Price: $155,106.35
- Low Ticket Price: $1,503.12
- Average Ticket Price: $13,416.18
- Median Ticket Price: $11,849.60
- Number and Percent That Met or Exceeded the Average Ticket Price: 3,664 Jobs (39%)
Part 6 – Year-Over-Year System Growth
- The below chart summarizes the year-over-year growth in revenue across all of the Affiliate Locations and the Corporate Outlet during the entire 2018, 2019, 2020, 2021, and 2022 calendar years.
- The “Overall System Growth” is the percentage of growth in Total Gross Revenues between each applicable year and the preceding year.
- The “Corporate Outlet Gross Revenues” represents Gross Revenue earned by Best Choice Roofing’s Corporate Outlet as disclosed above.
2018
- Affiliate Locations Gross Revenues: $15,626,418
- Corporate Outlet Gross Revenues: $10,432,729
- Total Gross Revenues: $26,059,147
- Overall System Growth: N/A
- Affiliate Locations at Year End: 10
- Corporate Locations at Year End: 6
- Total Locations at Year End: 16
2019
- Affiliate Locations Gross Revenues: $32,011,258
- Corporate Outlet Gross Revenues: $16,374,910
- Total Gross Revenues: $48,386,168
- Overall System Growth: 85.7%
- Affiliate Locations at Year End: 11
- Corporate Locations at Year End: 8
- Total Locations at Year End: 19
2020
- Affiliate Locations Gross Revenues: $56,561,961
- Corporate Outlet Gross Revenues: $31,487,562
- Total Gross Revenues: $88,049,523
- Overall System Growth: 82.0%
- Affiliate Locations at Year End: 17
- Corporate Locations at Year End: 12
- Total Locations at Year End: 29
2021
- Affiliate Locations Gross Revenues: $79,205,335
- Corporate Outlet Gross Revenues: $34,989,166
- Total Gross Revenues: $114,194,501
- Overall System Growth: 29.7%
- Affiliate Locations at Year End: 18
- Corporate Locations at Year End: 15
- Total Locations at Year End: 33
2022
- Affiliate Locations Gross Revenues: $109,954,748
- Corporate Outlet Gross Revenues: $39,785,690
- Total Gross Revenues: $149,740,446
- Overall System Growth: 31.1%
- Affiliate Locations at Year End: 18
- Corporate Locations at Year End: 17
- Total Locations at Year End: 35
- Some outlets have sold this amount. Your individual results may differ. There is no assurance you’ll sell as much.
Section VI – Best Choice Roofing Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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