In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Zoom Drain franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Zoom Drain 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 Zoom Drain 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 Zoom Drain franchise opportunity
Section V – Presentation and analysis of Zoom Drain’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 total gross sales, total costs of goods sold, gross profit, total operating expenses, and estimated earnings generated by the two Zoom Drain Affiliate-Owned Locations (operating in a total of three Territories)
- 2022 average, median, high, and low gross sales generated by the 13 Zoom Drain Franchisees operating in a total of 18 Territories during the 2022 calendar year
- average percentage increase from 2021 to 2022 generated by the 13 Zoom Drain Franchisees operating during the 2021 calendar year and 2022 calendar year
- average gross sales generated by the 13 Zoom Drain Franchisees operating in a total of 18 Territories during the first 12-month period and each subsequent 12-month period of operation
- average gross sales, total jobs, and gross sales per job for (i) 13 Zoom Drain Franchisees operating in a total of 18 Territories during the 2022 calendar year, (ii) the two Zoom Drain Affiliate-Owned Locations operating in three Territories during the 2022 calendar year; and (iii) all 15 Zoom Drain Locations operating in 21 Territories during the 2022 calendar year
- 2017, 2018, 2019, 2020, 2021, and 2022 total gross sales generated by the Zoom Drain Franchisees and Affiliate-Owned Locations during the applicable calendar year
- average monthly gross revenue generated by the nine Zoom Drain Franchisees operating in 33 Territories that opened during the 2022 calendar year
Section VI – Key ratios, comparables, computations, and analyses for the Zoom Drain franchise opportunity (exclusive content for Platinum subscribers)
Section I – Zoom Drain Franchise Costs
- Zoom Drain franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $49,500
- Payroll: $38,022 to $47,528
- Vehicles and Equipment, Initial Small Tools, and Inventory of Supplies: $25,400 to $183,166
- Opening Advertising, Brand Fund, and Local Advertising Requirement: $25,200 to $31,500
- Building Lease, Improvements, Utilities, Supplies: $28,200 to $35,250
- Maintenance, Fuel, Insurance, and Tolls: $4,430 to $5,538
- Recruiting, Hiring, and Uniforms: $4,350 to $5,438
- Office Supplies, Furniture, and Equipment: $5,000 to $6,250
- Phones, Computer, Technology Expenses: $7,650 to $9,563
- Business Licenses and Permits: $1,000 to $6,000
- Travel, Lodging for Training: $7,800 to $9,750
- Professional Fees: $3,900 to $4,875
- Additional Funds (3 months): $27,350 to $34,188
- Total Estimated Zoom Drain Franchise Costs: $227,802 to $428,546
Section II – Zoom Drain’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Zoom Drain’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 to $119,500; plus $0.16 per additional person within a Territory if you wish to purchase one or more Territories with a population greater than 300,000 per Territory
- Royalty Fee: during the first 12 months from the execution of your Franchise Agreement, you are required to pay Zoom Drain a Royalty Fee equal to 6% of Gross Sales. Starting 13 months from the execution of the Franchise Agreement, you are required to pay Zoom Drain a Royalty Fee equal to the greater of (i) 6% of Gross Sales, or (ii) $1,000 per Territory per month.
- Brand Fund Contribution: the greater of: (i) $550 multiplied by the number of Territories that you purchased each month (capped at $1,650); or (ii) 2% of Gross Sales of all Territories that you operate in per month
- Local Advertising Requirement: your Local Advertising Requirement will be $1,000 per Territory per month. If you operate in multiple Territories under a single Franchise Agreement, then you must expend $1,000 per Territory per month.
Section III – Number of Franchised and Company-Owned Zoom Drain 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: 17
- Net Change: +5
2021
- Outlets at the Start of the Year: 17
- Outlets at the End of the Year: 17
- Net Change: 0
2022
- Outlets at the Start of the Year: 17
- Outlets at the End of the Year: 51
- Net Change: +34
Company-Owned
2020
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 3
- Net Change: +1
2021
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2022
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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.📈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: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section IV – News Updates on the Zoom Drain Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Zoom Drain Franchise (Item 19, 2023 FDD)
- This Item sets forth certain historical data submitted by Zoom Drain’s franchisees (each, a “Franchisee”) and two affiliate-owned locations (each, an “Affiliate-Owned Location”) from January 1, 2022 to December 31, 2022.
- As of December 31, 2022, there were 22 Franchisees operating across 51 Territories and two Affiliate-Owned Locations operating in a total of three Territories.
- Any Franchisee or Affiliate-Owned Location that operates in multiple Territories is considered one Franchisee or one Affiliate-Owned Location for purposes of this Financial Performance Representation. No Franchisees or Territories are excluded from this Financial Performance Representation.
Part 1 – Total Gross Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, and Earnings for the Affiliate-Owned Locations (3 Territories) During the 2022 Calendar Year
- Part 1 of this Item discloses the total gross sales, total cost of goods sold, gross profit, estimated royalty fees, total operating expenses, and estimated earnings generated by the two Affiliate-Owned Locations (operating in a total of three Territories) during the 2022 Calendar Year.
- Part 1 of this Item excludes the Franchisees.
Gross Sales
- Total Gross Sales: $14,201,915 (100.0%)
Costs of Goods Sold
- Labor: $3,487,403 (24.6%)
- Materials: $730,965 (5.1%)
- Other COGS: $102,679 (0.7%)
- Total Costs of Goods Sold: $4,321,048 (30.4%)
Gross Profit: $9,880,867 (69.6%)
Operating Expenses
- Office and Sales Personnel Wages: $1,301,907 (9.2%)
- Employee Payroll Taxes, Insurance, and Benefits: $897,884 (6.3%)
- Employee Relations, Recruiting, Uniforms, and Training: $262,122 (1.8%)
- Advertising and Marketing: $1,162,510 (8.2%)
- Brand Fund Contribution: $284,038 (2.0%)
- Royalty Fee: $852,115 (6.0%)
- Technology Expenses: $25,925 (0.2%)
- Building Expenses: $553,903 (3.9%)
- Vehicle and Equipment Expenses: $1,123,383 (7.9%)
- Office Expenses: $455,043 (3.2%)
- Finance and Interest Expenses: $262,006 (1.8%)
- Professional Fees: $32,751 (0.2%)
- Other Sales, General, and Administrative Expenses: $62,683 (0.4%)
- Total Operating Expenses: $7,276,271 (51.2%)
Estimated Earnings: $2,604,596 (18.3%)
- The term “Total Gross Sales” means the total amount of all sales of products and services sold from, though, or in connection with the Affiliate-Owned Locations, whether for cash, on credit, barter or otherwise, exclusive of applicable sales, use, or service taxes.
- The term “Total Costs of Goods Sold” is calculated by taking the total amount the Affiliate-Owned Locations expended on labor, materials, subcontractors, and other items.
- The term “Gross Profit” is calculated by taking the Total Gross Sales and subtracting the Total Costs of Goods Sold.
- Office and Sales Personnel Wages excludes the salary, wages, medical benefits paid to the CEO, Vice President of Operations, and Franchise Support Personnel, to the extent such personnel were dedicating their time to company activities vs. the franchise.
- The Brand Fund Contribution includes the Brand Fund Contribution of 2% of Gross Sales, calculated by multiplying the Total Gross Sales by .02 to account for the Brand Fund Contribution of 2% set forth and required under Zoom Drain’s current form of Franchise Agreement.
- The term “Royalty Fee” means the Royalty Fee that the Affiliate-Owned Locations paid to Zoom Drain over the 2022 Calendar Year. Zoom Drain calculated the Royalty Fees by multiplying the Total Gross Sales by .06 to account for the Royalty Fee of 6% set forth and required under the current form of Franchise Agreement.
- The term “Total Operating Expenses” is calculated by adding up all the line items set forth under the “Operating Expenses” category.
- The term “Estimated Earnings” is calculated by taking the Gross Profit and subtracting the Total Operating Expenses. Estimated Earnings is defined as earnings before interest, taxes, depreciation, and amortization.
Part 2 – Average, Median, High, and Low Gross Sales Generated by Franchisees During the 2022 Calendar Year
- Part 2 of this Item discloses the average, median, high, and low gross sales generated by 13 Franchisees operating in a total of 18 Territories during the 2022 Calendar Year.
- Part 2 of this Item excludes (i) the two Affiliate-Owned Locations operating in a total of three Territories, and (ii) nine Franchisees operating in a total of 33 Territories that opened during the 2022 Calendar Year and were otherwise not operating during the entire year.
- Number of Representative Franchisees: 13
- Average Gross Sales: $1,969,186
- Median Gross Sales: $1,746,863
- High Gross Sales: $5,618,721
- Low Gross Sales: $167,108
- Number Above/Below Average: 4 / 9
Part 3 – Total Gross Sales and Percentage Increase Generated by Franchisees During the 2020 Calendar Year and 2021 Calendar Year
- Part 3 of this Item discloses the total gross sales and percentage increase generated by 13 Franchisees operating in a total of 18 Territories during the 2021 Calendar Year and 2022 Calendar Year.
- Part 3 of this Item excludes (i) the two Affiliate-Owned Locations operating in a total of three Territories, and (ii) nine Franchisees operating in a total of 33 Territories that opened during the 2022 Calendar Year and were otherwise not operating during the entire year.
- Number of Representative Franchisees: 13
- Average % Increase from 2021 to 2022: 35.9%
Part 4 – Gross Sales Generated by Franchisees During Their First 12-Month Period and Each Subsequent 12-Month Period of Operations
- Part 4 of this Item discloses the total gross sales generated by 13 Franchisees operating in 18 Territories during the first 12-month period and each subsequent 12-month period of operation.
- Part 4 of this Item excludes (i) the two Affiliate-Owned Locations operating in a total of three Territories, and (ii) nine Franchisees operating in a total of 33 Territories that opened during the 2022 Calendar Year and were otherwise not operating during the entire year.
- Number of Representative Franchisees: 13
- Year 1 Average Gross Sales: $487,789
- Number of Representative Franchisees: 13
- Year 2 Average Gross Sales: $882,607
- Number of Representative Franchisees: 9
- Year 3 Average Gross Sales: $1,386,776
- Number of Representative Franchisees: 8
- Year 4 Average Gross Sales: $1,910,630
- Number of Representative Franchisees: 2
- Year 5 Average Gross Sales: $3,060,590
- Number of Representative Franchisees: 2
- Year 6 Average Gross Sales: $4,534,598
- Number of Representative Franchisees: 1
- Year 7 Average Gross Sales: $3,479,602
Part 5 – Total Gross Sales, Total Jobs, and Average Sales for the Franchisees and Affiliate-Owned Locations During the 2022 Calendar Year
- Part 5 of this Item discloses the total gross sales, total jobs, and average gross sales per job for (i) 13 Franchisees operating in 18 Territories, and (ii) two Affiliate-Owned Locations operating in three Territories during the 2022 Calendar Year.
- Part 5 excludes nine Franchisees operating in a total of 33 Territories that opened during the 2022 Calendar Year and were otherwise not operating during the entire year.
Franchised
- Number of Representative Franchisees: 13
- Average Gross Sales: $1,969,186
- Average Total Jobs: 2,985
- Average Gross Sales Per Job: $717
Affiliate-Owned
- Number of Affiliate-Owned Locations: 2
- Average Gross Sales: $7,100,663
- Average Total Jobs: 11,538
- Average Gross Sales Per Job: $570
All Locations
- Number of Locations: 15
- Average Gross Sales: $2,653,383
- Average Total Jobs: 4,126
- Average Gross Sales Per Job: $697
Part 6 – Total Gross Sales Generated by Franchisees and Affiliate-Owned Locations During the 2017, 2018, 2019, 2020, 2021, and 2022 Calendar Years
- Part 6 of this Item discloses the total gross sales generated by the 13 Franchisees operating in 18 Territories, and (ii) two Affiliate-Owned Locations operating in three Territories during the 2017, 2018, 2019, 2020, 2021, and 2022 Calendar Years.
2017
- Number of Franchisees as of Calendar Year End: 2
- Franchisees Gross Sales: $1,032,635
- Affiliate-Owned Location Gross Sales: $6,087,861
- Franchisee and Affiliate-Owned Location Gross Sales: $7,120,496
2018
- Number of Franchisees as of Calendar Year End: 6
- Franchisees Gross Sales: $2,337,203
- Affiliate-Owned Location Gross Sales: $7,355,064
- Franchisee and Affiliate-Owned Location Gross Sales: $9,692,267
2019
- Number of Franchisees as of Calendar Year End: 9
- Franchisees Gross Sales: $7,107,030
- Affiliate-Owned Location Gross Sales: $9,419,949
- Franchisee and Affiliate-Owned Location Gross Sales: $16,526,979
2020
- Number of Franchisees as of Calendar Year End: 13
- Franchisees Gross Sales: $10,525,485
- Affiliate-Owned Location Gross Sales: $10,815,716
- Franchisee and Affiliate-Owned Location Gross Sales: $21,341,201
2021
- Number of Franchisees as of Calendar Year End: 13
- Franchisees Gross Sales: $19,496,877
- Affiliate-Owned Location Gross Sales: $12,214,011
- Franchisee and Affiliate-Owned Location Gross Sales: $31,710,888
2022
- Number of Franchisees as of Calendar Year End: 13
- Franchisees Gross Sales: $25,599,419
- Affiliate-Owned Location Gross Sales: $14,201,326
- Franchisee and Affiliate-Owned Location Gross Sales: $39,800,744
Part 7 – Monthly Gross Sales Generated by Franchisees That Opened During the 2022 Calendar Year
- Part 7 of this Item discloses the monthly gross revenue generated by the nine Franchisees operating in 33 Territories that opened during the 2022 Calendar Year.
- Part 7 excludes (i) the 13 Franchisees operating in 18 Territories that opened prior to the 2022 Calendar Year, and (iv) the two Affiliate-Owned Locations operating in three Territories.
Average Unit Sales of New Franchisees, Months 1 to 5
- Month 1: $15,934
- Month 2: $21,040
- Month 3: $24,526
- Month 4: $25,229
- Month 5: $37,789
Section VI – Zoom Drain Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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