Screenmobile Franchise: Average Sales ($418K) vs. Cost ($165K-$226K)

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

Section I – Estimated initial investment (franchise costs) for a Screenmobile franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Screenmobile franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Screenmobile 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 Screenmobile franchise opportunity

Section V – Presentation and analysis of Screenmobile’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average, median, highest, and lowest gross sales, number of customers, and gross sales per customer for the 132 Screenmobile Territories that were in operation for the entire 2022 fiscal year (by quartile and overall)

• 2022 average, median, highest, and lowest operating profit percentage for the 123 Screenmobile Territories that completed the franchisor’s survey

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

Section I – Screenmobile Franchise Costs

• Screenmobile franchise costs, based on Item 7 of the company’s 2023 FDD:

• Franchise Fee:  $49,500
• Territory Fee:  $22,500
• Start-Up Package:  $41,900
• Pre-Opening and Grand Opening Marketing:  $6,000
• Inventory and Supplies:  $15,000 to $20,000
• Travel Expenses for Initial Training:  $1,000 to $1,500
• Vehicle Lease:  $0 to $7,500
• Signage for Vehicles:  $3,500 to $7,000
• Vehicle Registration Fees:  $1,500 to $2,000
• Insurance:  $2,000 to $12,000
• Telephone Lines and Wireless Internet:  $300 to $800
• Lease, Utility and Security Deposits, and Storage:  $0 to $2,500
• Additional Funds for 3 Months:  $22,500 to $50,000
• Total Estimated Screenmobile Franchise Costs:  $165,700 to $226,700

Section II – Screenmobile’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Screenmobile’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $49,500
• Initial Territory Fee:  $0.15 per Household
• Royalty:  beginning on the Original Opening Date, 7% of Gross Revenue. Beginning month 4 following the Original Opening Date, 7% of Gross Revenue or the Minimum Royalty Fee, whichever is greater. The Minimum Royalty Fee is: Months 4 to 12: $450 per month; Months 13 to 24: $1,050 per month; Months 25 to 36: $1,750 per month; Months 37+: $2,188 per month
• Brand Fund Contribution:  currently, 2% of Gross Revenue
• Local Marketing and/or Cooperative: effective until notice of 2023 Local Marketing Fee change: 4% of the preceding month’s generated Gross Revenue. Effective on notice of 2023 Local Marketing Fee change: starting on the Original Opening Date, you are required to pay Screenmobile $36,000 per calendar year (an average of $3,000 per month) for Local Marketing (“Annual Local Marketing Fee”), prorated for the first partial year of operation

Section III – Number of Franchised and Company-Owned Screenmobile Outlets

Franchised

2020

• Outlets at the Start of the Year:  121
• Outlets at the End of the Year:  130
• Net Change:  +9

2021

• Outlets at the Start of the Year:  130
• Outlets at the End of the Year:  140
• Net Change:  +10

2022

• Outlets at the Start of the Year:  140
• Outlets at the End of the Year:  148
• Net Change:  +8

Company-Owned

2020

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

2021

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

2022

• 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 Screenmobile Franchise

• Screenmobile Wins Franchise Times Zor Award as Top Brand to Buy

• Screenmobile Franchising Introduction

• Screenmobile Achieves Success in First Quarter of 2022

• Mobile Screen Service Franchise Opens New Location in Area

• Screenmobile Ranked No. 163 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Screenmobile Franchise (Item 19, 2023 FDD)

• In this Item, Screenmobile presents certain historical information for franchised Screenmobile businesses for the 2022 fiscal year and prior years. As of December 31, 2022, Screenmobile had 108 franchisees operating in 148 Territories and one franchisor-owned Screenmobile business in operation.

• Parts 1 through 5 present information on 132 Territories that were in operation for the entire 2022 fiscal year. Excluded from these tables are 17 Territories that did not operate for the entire 2022 fiscal year, including 3 Territories that ceased operation in 2022, 13 Territories that opened in 2022, and 3 Territories that transferred the Franchised Business and ceased operations for a period of time in 2022.

• Of the 132 Territories reported in the tables (the “Reporting Group”), 96 had 150,000 Housing Units or more and 36 had fewer than 150,000 Housing Units. Screenmobile requires franchisees with territories including 150,000 Housing Units or more to operate with an additional vehicle and trailer.

Part 1 – Average Gross Sales, Number of Customers, and Gross Sales Per Customer

Gross Sales

• Average Per Territory:  $418,286
• Median:  $298,304
• Highest Territory:  $2,913,397
• Lowest Territory:  $18,580
• Number of Territories Exceeding Average:  45
• Percentage of Territories Exceeding Average:  34%

Number of Customers

• Average Per Territory:  401
• Median:  320
• Highest Territory:  1,639
• Lowest Territory:  4
• Number of Territories Exceeding Average:  48
• Percentage of Territories Exceeding Average:  36%

Gross Sales Per Customer

• Average Per Territory:  $1,213
• Median:  $911
• Highest Territory:  $5,975
• Lowest Territory:  $215
• Number of Territories Exceeding Average:  48
• Percentage of Territories Exceeding Average:  36%

• “Gross Sales” means the revenues received from the sale of all goods, products, and services sold at, from, or through Screenmobile and all other income, revenue, and consideration of every kind and nature related to Screenmobile, whether for cash or credit, and regardless of collection in the case of credit, including the full redemption value of any gift certificate or coupon sold for use in Screenmobile (fees retained by or paid to third-party sellers of such gift certificates or coupons are not excluded from this calculation), and all proceeds from any business interruption insurance, but not including: (a) any sales taxes or other taxes collected from customers for, and paid directly to, the appropriate taxing authority; and (b) any bona fide refunds made to customers.

• “Number of Customers” is calculated by determining the total number of customers serviced by the Reporting Group in 2022 and dividing by the number of territories in the Reporting Group.

• “Gross Sales Per Customer” is determined by dividing the total Gross Sales generated by the Reporting Group in 2022 by the Number of Customers in the Reporting Group. Because the figure shown is the average for the Reporting Group as a whole, it does not correspond to the Territory averages in the prior line items.

Part 2 – Gross Sales Per Territory, by Quartile

• Part 2 below reports on 132 Territories that were in operation for the entire 2022 fiscal year, ranked in order of highest Gross Sales to lowest Gross Sales.

Top 25%

• Number of Territories in Group:  33
• Average Gross Sales Per Territory:  $938,419
• Median Gross Sales in Group:  $823,312
• Highest Territory Gross Sales in Group:  $2,913,397
• Lowest Territory Gross Sales in Group:  $484,323
• Number of Territories Exceeding Group Average:  14
• Percentage of Territories Exceeding Group Average:  42%

2nd Quartile

• Number of Territories in Group:  33
• Average Gross Sales Per Territory:  $383,769
• Median Gross Sales in Group:  $374,141
• Highest Territory Gross Sales in Group:  $462,303
• Lowest Territory Gross Sales in Group:  $299,497
• Number of Territories Exceeding Group Average:  15
• Percentage of Territories Exceeding Group Average:  45%

3rd Quartile

• Number of Territories in Group:  33
• Average Gross Sales Per Territory:  $237,281
• Median Gross Sales in Group:  $241,024
• Highest Territory Gross Sales in Group:  $297,110
• Lowest Territory Gross Sales in Group:  $174,467
• Number of Territories Exceeding Group Average:  18
• Percentage of Territories Exceeding Group Average:  55%

Bottom 25%

• Number of Territories in Group:  33
• Average Gross Sales Per Territory:  $113,676
• Median Gross Sales in Group:  $125,041
• Highest Territory Gross Sales in Group:  $174,467
• Lowest Territory Gross Sales in Group:  $18,580
• Number of Territories Exceeding Group Average:  20
• Percentage of Territories Exceeding Group Average:  61%

Part 3 – Number of Customers Per Territory, by Quartile

• Part 3 below reports on 132 Territories that were in operation for the entire 2022 fiscal year, ranked in order of highest Number of Customers to lowest Number of Customers.

Top 25%

• Number of Territories in Group:  33
• Average Number of Customers Per Territory:  826
• Median Number of Customers in Group:  703
• Highest Territory Number of Customers:  1,639
• Lowest Territory Number of Customers:  484
• Number of Territories Exceeding Group Average:  11
• Percentage of Territories Exceeding Group Average:  33%

2nd Quartile

• Number of Territories in Group:  33
• Average Number of Customers Per Territory:  397
• Median Number of Customers in Group:  394
• Highest Territory Number of Customers:  483
• Lowest Territory Number of Customers:  321
• Number of Territories Exceeding Group Average:  16
• Percentage of Territories Exceeding Group Average:  48%

3rd Quartile

• Number of Territories in Group:  33
• Average Number of Customers Per Territory:  255
• Median Number of Customers in Group:  257
• Highest Territory Number of Customers:  319
• Lowest Territory Number of Customers:  192
• Number of Territories Exceeding Group Average:  17
• Percentage of Territories Exceeding Group Average:  52%

Bottom 25%

• Number of Territories in Group:  33
• Average Number of Customers Per Territory:  127
• Median Number of Customers in Group:  129
• Highest Territory Number of Customers:  182
• Lowest Territory Number of Customers:  4
• Number of Territories Exceeding Group Average:  17
• Percentage of Territories Exceeding Group Average:  52%

• “Number of Customers” is calculated by determining the total number of customers serviced by each Territory in the Reporting Group.

Part 4 – Average Gross Sales Per Customer, by Quartile

• Part 4 below reports on 132 Territories that were in operation for the entire 2022 fiscal year, ranked in order of highest Gross Sales Per Customer to lowest Gross Sales Per Customer.

Top 25%

• Number of Territories in Group:  33
• Average Gross Sales Per Customer for the Group:  $2,393
• Median Gross Sales Per Customer in Group:  $2,029
• Highest Gross Sales Per Customer for Territories in Group:  $5,975
• Lowest Gross Sales Per Customer for Territories in Group:  $1,647
• Number of Territories Exceeding Group Average:  9
• Percentage of Territories Exceeding Group Average:  27%

2nd Quartile

• Number of Territories in Group:  33
• Average Gross Sales Per Customer for the Group:  $1,251
• Median Gross Sales Per Customer in Group:  $1,193
• Highest Gross Sales Per Customer for Territories in Group:  $1,626
• Lowest Gross Sales Per Customer for Territories in Group:  $919
• Number of Territories Exceeding Group Average:  15
• Percentage of Territories Exceeding Group Average:  45%

3rd Quartile

• Number of Territories in Group:  33
• Average Gross Sales Per Customer for the Group:  $726
• Median Gross Sales Per Customer in Group:  $719
• Highest Gross Sales Per Customer for Territories in Group:  $904
• Lowest Gross Sales Per Customer for Territories in Group:  $574
• Number of Territories Exceeding Group Average:  15
• Percentage of Territories Exceeding Group Average:  45%

Bottom 25%

• Number of Territories in Group:  33
• Average Gross Sales Per Customer for the Group:  $481
• Median Gross Sales Per Customer in Group:  $516
• Highest Gross Sales Per Customer for Territories in Group:  $573
• Lowest Gross Sales Per Customer for Territories in Group:  $215
• Number of Territories Exceeding Group Average:  20
• Percentage of Territories Exceeding Group Average:  61%

Part 5 – Operating Expense as a Percentage of Gross Sales

• In April 2023, Screenmobile sent a survey to all franchisees requesting figures for the 2022 fiscal year showing their respective operating expenses as a percentage of Gross Sales. Part 5 includes information for 123 Territories that completed the survey.

• Screenmobile has excluded the results of the responding franchisees who were not open for the entire 2022 fiscal year and the franchisees who did not respond to the survey.

• Part 5 below reports the average of the survey responses from these 123 Territories.

• Average Operating Expense Percentage:  73%
• Median Operating Expense Percentage:  73%
• Lowest Operating Expense Percentage:  9%
• Highest Operating Expense Percentage:  162%
• Number of Territories Exceeding Average:  64
• Percentage of Territories Exceeding Average:  52%

• “Operating Expense(s)” includes items such as supplies, vehicle expenses and licensing, marketing, utilities, software, insurance, professional fees, and employee wages. It also includes fees paid to Screenmobile, including Royalty Fees and Brand Fund contributions. It does not include owners’ salary, owners’ draws, or shareholders’ draws, nor does it include interest, income taxes, depreciation, amortization, and other non-operating expenses.

• Some of the reporting franchisees utilize employees while others are owner-operators. The reported Operating Expenses were affected by production and supply issues and other market conditions caused by the economic effects of the pandemic market and lockdown restrictions.

• Except for Part 5, the financial performance representations in this Item 19 do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

• The financial information Screenmobile utilized in preparing the preceding financial performance representations was based entirely upon information reported to the franchisor’s predecessor by franchisees. No independent accountant or auditing firm has audited, reviewed, or otherwise evaluated this information for accuracy or expressed an opinion with regard to its content or form.

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