Bumble Bee Blinds: $1.56M Annual Sales vs. $185K-$260K Franchise Cost

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

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

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

Section III – Number of franchised and company-owned Bumble Bee Blinds 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 Bumble Bee Blinds franchise opportunity

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

• 2022 gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, adjusted expenses, and adjusted EBITDA for the predecessor business, an entity owned by the brand’s founder and which subsequently executed a franchise agreement with the franchisor

• 2022 average ticket, close ratio, % of total sales – shades, % of total sales – blinds, install per blind/roller shade, and install for all other products for the predecessor business

• 2021 and 2022 gross sales for the predecessor business

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

Section I – Bumble Bee Blinds Franchise Costs

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

• Initial Fee:  $59,500
• Insurance (90 Days):  $5,000 to $7,500
• Tuition Fee:  $4,995
• Travel and Living Expenses While Training:  $1,500 to $3,500
• Opening Package:  $20,000 to $25,000
• Utilities (90 days):  $200 to $500
• Vehicles:  $11,405 to $48,379
• Licenses, Certificates, and Permits:  $0 to $1,500
• Professional Fees:  $0 to $5,000
• Technology Fee:  $9,500
• Call Center Fee:  $3,600
• Dues and Subscriptions:  $0 to $1,500
• Local Brand Optimization Fee (first year):  $15,000
• Creative Media Fund Fee:  $6,500
• Initial Marketing Expenditure and Local Advertising Expenditure (90 days):  $20,000
• Digital Management Fee:  $3,000
• National Permit Database Fee:  $297
• Accounting Services Fee:  $4,999
• Additional Funds:  $20,000 to $40,000
• Total Estimated Bumble Bee Blinds Franchise Costs:  $185,496 to $260,270

Section II – Bumble Bee Blinds’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Bumble Bee Blinds’ 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 Fee:  the greater of (i) 8.5% of Gross Revenues Collected; or (ii) the Minimum Royalty Fee

• Brand Fund Contribution:  if and when established, the then-current Brand Fund Contribution amount, which shall not exceed 3% of weekly Gross Revenues Collected. The total sum of the Brand Fund Contribution and the Royalty, as a percentage of weekly Gross Revenues Collected, shall not exceed the then-current Royalty rate effective immediately prior to establishment of the Brand Fund.

• Local Advertising Deficiency:  payable only if you fail to perform the Local Advertising Expenditure Requirement. You are required to spend at least $20,000 within the first 90 days of commencing operations on Initial Marketing Expenditure Requirement. Thereafter on a monthly basis, the greater of either: (i) $2,000 per month; or (ii) 5% of your monthly Gross Revenues Collected, on Local Advertising Expenditure Requirement.

• Local Brand Optimization Fee (optional after first year):  the then-current Local Brand Optimization Fee; currently, a Local Brand Optimization Fee of $15,000 for the first 12 months of invoices

• Digital Management Fee:  the then-current Digital Management Fee; currently, $1,000 per month

Section III – Number of Franchised and Company-Owned Bumble Bee Blinds Outlets

Franchised

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

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

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

• 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 Bumble Bee Blinds Franchise

• Latest Buzzzzz at HorsePower Brands LLC

• Bumble Bee Blinds Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

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

• On July 5, 2022, HPB Blinds and Shutters LLC (the franchisor) purchased certain assets of its predecessor, Omaha Blinds and Shutters LLC (“OBS”), an entity owned by the brand’s founder, Stephen Vest. Mr. Vest, through his entity OBS, has operated a blinds and shutters installation business in Omaha, Nebraska and Lincoln, Nebraska since 2015 under the principal trademark “Omaha Blinds and Shutters” (the “Predecessor Business”). The Predecessor Business offers substantially similar products and services as the business you will operate under the Bumble Bee Blinds trademark.

• The Predecessor Business subsequently executed a franchise agreement with the franchisor and was rebranded to a Bumble Bee Blinds Business in October 2022. The Predecessor Business serves as Bumble Bee Blinds’ flagship outlet and served as the base from which the franchisor created the franchise model offered under the Disclosure Document.

• The Predecessor Business was in operation for the entirety of the period beginning January 1, 2022 to December 31, 2022 (the “Measurement Period”). During the Measurement Period, the Predecessor Business operated a business substantially similar to the franchised business offered under the Disclosure Document under the mark “Omaha Blinds and Shutters” in an area that would encompass approximately 5 Protected Territories.

• During the Measurement Period, from January 1, 2022 until October 2022, the Predecessor Business operated under the mark “Omaha Blinds and Shutters” until the franchisor’s acquisition of certain assets of the Predecessor Business in October 2022, where the Predecessor Business rebranded and operated under the principal trademark “Bumble Bee Blinds.”

• Except for the difference in primary trademark used during the Measurement Period, the exclusions of certain costs and expenses that you will pay under the franchise agreement as noted below in Part 1, the Predecessor Business is substantially similar to the Bumble Bee Blinds Business offered under the Disclosure Document.

• This Item sets forth historical revenue and cost information for the Predecessor Business generated and incurred in connection with the Predecessor Business’s operations during the Measurement Period. The Predecessor Business provided the franchisor with unaudited financial information for the Measurement Period. The franchisor based the historical financial performance information presented in this Item 19 on this unaudited financial information and the franchisor did not audit or otherwise independently verify this information.

• Part 1 sets forth Gross Sales, Direct Cost of Goods and Services Sold, and certain Disclosed Expenses of the Predecessor Business during the Measurement Period, as well as certain Adjusted Expenses of the Predecessor Business during the Measurement Period.

• Part 2 sets forth Average Ticket, Close Ratio, Percent of Total Revenue – Shades, Percent of Total Revenue – Blinds, Install per Blind/Roller Shade, and Install for all other Products of the Predecessor Business during the Measurement Period.

• Part 3 sets forth Historical Performance of Revenue achieved by the Predecessor Business during the Measurement Period.

• The franchisor has not audited or independently verified the data submitted by the Predecessor Business and no assurance can be offered that the data does not contain inaccuracies that an audit might disclose.

Part 1 – Predecessor Business Financials During the Measurement Period (January 1, 2022 to December 31, 2022)

Gross Sales:  $1,564,279 (100.0%)

Direct Cost of Goods and Services Sold

• Subcontractor Costs:  $160,737 (10.3%)
• Materials:  $812,780 (52.0%)
• Total Direct Cost of Goods and Services Sold:  $973,517 (62.2%)

Gross Profit:  $590,762 (37.8%)

Disclosed Expenses

• Advertising and Promotion:  $67,735 (4.3%)
• Insurance Expense:  $4,600 (0.3%)
• Payroll Expenses:  $42,874 (2.7%)
• Rent, Utilities, and Trash:  $10,105 (0.6%)
• Merchant Fees and Bank Fees:  $16,484 (1.1%)
• Automobile, Repair, Maintenance, and Other:  $10,121 (0.6%)
• Miscellaneous Expense:  $2,124 (0.1%)
• Office Supplies:  $2,593 (0.2%)
• Dues, Subscriptions, Taxes, and Licenses:  $1,019 (0.1%)
• Total Disclosed Expenses:  $157,655 (10.1%)

Gross Profit Less Disclosed Expenses:  $433,107 (27.7%)

Adjusted Expenses: Disclosed Expenses Not Paid by Founder but Charged to a Franchisee

• Royalty Fee:  $132,964 (8.5%)
• Technology Fee:  $9,500 (0.6%)
• Call Center Fee:  $10,118 (0.6%)
• Digital Management Fee:  $12,000 (0.8%)
• Annual Conference Fee:  $1,000 (0.1%)
• Total Adjusted Expenses:  $165,582 (10.6%)

Total Disclosed Expenses and Adjusted Expenses:  $323,237 (20.7%)

Adjusted EBITDA:  $267,525 (17.1%)

• “Gross Sales” is defined as the total revenue less sales tax, discounts, allowances, and returns during the Measurement Period.

• “Direct Costs of Goods and Services Sold” is defined as the direct non-managerial and non-administrative cost of goods sold, materials, and labor incurred in directly performing and/or installing Approved Services and Products resulting in Gross Sales during the Measurement Period. Direct Cost of Goods and Services Sold do not include managerial expenses, field management, administrative expenses, Disclosed Expenses, operating expenses, or general expenses including, but not limited to, credit card processing or bank fees.

• “Subcontractor Costs” is defined as the reported cost of subcontractors used in the operation of the business during the Measurement Period.

• “Materials” is defined as the reported cost of materials used in the operation of the business during the Measurement Period.

• “Total Direct Cost of Goods and Services Sold” is defined as the sum of Subcontractor Costs and Materials during the Measurement Period.

• “Gross Profit” is defined as Gross Sales less Total Direct Costs of Goods and Services Sold during the Measurement Period.

• “Disclosed Expenses” is defined as a limited selection of historical expenses incurred as disclosed in this table to this Item 19 during the Measurement Period. The franchisees may incur additional expenses depending on how they operate their franchise from a staff perspective.

• “Advertising and Promotion” is defined as the costs associated with marketing, advertising, and promotion during the Measurement Period.

• “Insurance Expense” is defined as the costs of insurance required for the operation of the business, including, but not limited to, general liability insurance, umbrella insurance, workers compensation insurance, professional liability, contractors, and any other insurance required in the operation of the business during the Measurement Period.

• “Payroll Expense” is defined as the reported expenses for payroll and wages for labor used in the operation of the business during the Measurement Period.

• “Rent, Utilities, and Trash” is defined as the costs associated with renting a facility to serve as an office and warehouse to store the inventory, equipment, and supplies, including utility costs such as power, water, gas, trash, and any other utilities that service the rented facility for the operation of the business during the Measurement Period.

• “Merchant Fees and Bank Fees” is defined as the fees associated with the merchant and bank service providers incurred by the business during the Measurement Period.

• “Automobile Repair, Maintenance, and Other” is defined as the costs associated with the repair and general maintenance of vehicles required in the operation of the business, as well as other maintenance items incurred in the operation of the business during the Measurement Period.

• “Miscellaneous Expense” is defined as the costs associated with miscellaneous expenses in the operation of the business during the Measurement Period.

• “Office Supplies” is defined as the items used by the business to run and operate the business, such as pens, paper, notebooks, envelops, folders, tape, glue, markers, and any other related administrative expenses pertaining to office supplies incurred in the operation of the business during the Measurement Period.

• “Dues, Subscriptions, Taxes, and Licenses” is defined as the costs of dues, subscriptions (and related software) for or related to local networking groups or other professional, business, and industry organization, as well as the costs of taxes, permits, licenses, certificates, and registrations required for the operation of the business during the Measurement Period. These costs may vary by geographic location or market circumstances.

• “Total Disclosed Expenses” is defined as the sum of: (i) Advertising and Promotion; (ii) Insurance Expense; (iii) Payroll Expense; (iv) Rent, Utilities, and Trash; (v) Merchant Fees and Bank Fees; (vi) Automobile Repair, Maintenance, and Other; (vii) Miscellaneous Expense; (viii) Office Supplies; and (ix) Dues, Subscriptions, Taxes, and Licenses during the Measurement Period.

• “Adjusted Expenses” is defined as certain expenses not paid by Bumble Bee Blinds’ Founder during the Measurement Period, but are incurred by the Franchisee, including but not limited to the Royalty Fee, Technology Fee, Call Center Fee, Digital Management Fee, and Annual Conference Fee, as described below.

• “Royalty Fee” is defined as royalty fees paid to Bumble Bee Blinds. This fee was calculated based upon a royalty fee of 8.5% of Gross Revenues Collected in the operation of the business during the Measurement Period.

• “Technology Fee” is defined as fees paid to Bumble Bee Blinds to cover costs associated with system network functions, updating microsites, data reporting, customer relationship management, call center interfacing software, and various software programs that the Franchisee must utilize in the operation of the franchised business.

• “Call Center Fee” is defined as the fee charged by Bumble Bee Blinds’ affiliate, HPB Call Center, for all Call Center Services received by the Franchisee. This fee does not include scheduled lead fees.

• “Digital Management Fee” is defined as the fee charged by Bumble Bee Blinds’ affiliate, HPB Franchise Marketing d/b/a Franchise Rocket, to cover the costs of digital marketing and website management.

• “Annual Conference Fee” is defined as the costs to attend the required annual conference held by Bumble Bee Blinds.

• “Total Adjusted Expenses” is defined as the sum of: (i) Royalty Fee; (ii) Technology Fee; (iii) Call Center Fee; (iv) Digital Management Fee; and (v) Annual Conference Fee.

• “Total Disclosed Expenses and Adjusted Expenses” is defined as the sum of: (i) Total Disclosed Expenses; and (ii) Adjusted Expenses.

• “Adjusted EBITDA” is defined as Gross Profit less Total Disclosed Expenses and Adjusted Expenses.

Part 2 – Predecessor Business Key Performance Indicators (2022)

• Average Ticket:  $4,500
• Close Ratio:  80%
• % of Total Sales – Shades:  70%
• % of Total Sales – Blinds:  30%
• Install Per Blind/Roller Shade:  $8.00
• Install for All Other Products:  $7.00

• “Average Ticket” is defined as the average dollars spent per transaction performed during the Measurement Period.

• “Close Ratio” is defined as the percentage of total estimates written that turned into invoices.

• “% of Total Revenue – Shades” is defined as the percentage of Total Revenue attributable to shades services performed during the Measurement Period.

• “% of Total Revenue – Blinds” is defined as the percentage of Total Revenue attributable to blinds services performed during the Measurement Period.

• “Install Per Blinds/Roller Shade” is defined as the amount paid to subcontractors per Blind/Roller Shade installation.

• “Install for All Other Products” is defined as the amount paid to subcontractors per installation for all other products.

Part 3 – Predecessor Historical Performance (2021 and 2022)

Gross Sales

• 2021:  $1,163,505
• 2022:  $1,564,279

• “Revenue” is defined as total revenue less sales tax, discounts, allowances, and returns during the Measurement Period.

• The Item 19 historical financial performance representation included in this Item includes certain reported performance information reported by the Predecessor Business during the Measurement Period only. It is not a representation of what you can expect to achieve in connection with the operation of a Bumble Bee Blinds Business.

• This analysis does not contain complete information concerning the operating costs and expenses that you will incur in operating your Bumble Bee Blinds Business. Operating costs and expenses may vary substantially from business to business.

• In addition to the items noted above, the above figures exclude, among other costs and expenses, payroll, payroll taxes, owner compensation/salary, healthcare, employee benefits, uniforms, office supplies, certain equipment costs associated with running your own crews, postage, travel and entertainment expenses, late fees, training fees, and other fees and expenses which you will incur as a franchisee.

• The above figures exclude tax liabilities that you will be responsible for.

• Interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from business to business, depending on the amount and kind of financing you obtain to establish your Bumble Bee Blinds Business.

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

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