Schooley Mitchell: $274K Average Sales vs. $70.5K-$80.7K Franchise Cost

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

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

Section II – Initial franchise fee, royalty fee, and marketing fee for a Schooley Mitchell 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 Schooley Mitchell 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 Schooley Mitchell franchise opportunity

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

average, median, highest, and lowest annual secured revenue for the 63 full-time Schooley Mitchell franchisees for the 12 months ending May 31, 2023, by quartile

average, median, highest, and lowest annual secured revenue for the 132 part-time Schooley Mitchell franchisees for the 12 months ending May 31, 2023

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

Section I – Schooley Mitchell Franchise Costs

Schooley Mitchell franchise costs, based on Item 7 of the company’s 2023 FDD:

Initial Franchise Fee: $68,000
Training Expenses: $500 to $2,000
Equipment and Fixtures (in home office): $0 to $2,000
Equipment and Fixtures (office outside of home): $0 to $2,000 (optional)
Security Deposits, Insurance, Utilities, Licenses, Professional Fees, Inventory, and Other Prepaid Expenses (in home office): $0 to $1,000
Security Deposits, Insurance, Utilities, Licenses, Professional Fees, Inventory, and Other Prepaid Expenses (office outside of home): $0 to $2,000 (optional)
Rent (office outside of home): $0 to $750 (optional)
Office Supplies (with logo): $1,000
Additional Funds – 3 Months: $1,000 to $2,000
Total Estimated Schooley Mitchell Franchise Costs: $70,500 to $80,750

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

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

Initial Franchise Fee: $68,000

Royalty Fee (standard franchise): 8% of Gross Sales in each calendar month. The minimum royalty for the 7th through 29th months during the initial term of the agreement is $200 per month, and for the 30th and all subsequent months during the initial term of the agreement is $400 per month.

Royalty Fee (builder franchise): 12% of Gross Sales in each calendar month. The minimum royalty for the 7th and all subsequent months during the initial term of the agreement is $125 per month.

Royalty Fee (development franchise): 8% of Gross Sales in each calendar month. The royalty fee is reduced to 7% for Gross Sales of $2,500,001 to $5,000,000, and to 6% of Gross Sales above $5,000,000 in each calendar year. Minimum royalty is the same as a standard franchise.

Advertising Fee (standard and development franchise): 2% of Gross Sales in each calendar month. The minimum fee for the 7th through 29th months during the initial term of the agreement is $50 per month, and for the 30th and all subsequent months during the initial term of the agreement is $100 per month.

Advertising Fee (builder franchise): 3% of Gross Sales in each calendar month. No minimum fee.

Section III – Number of Franchised and Company-Owned Schooley Mitchell Outlets

Franchised – U.S.

2020

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Outlets at the Start of the Year: 122
Outlets at the End of the Year: 168
Net Change: +46

2021

Outlets at the Start of the Year: 168
Outlets at the End of the Year: 194
Net Change: +26

2022

Outlets at the Start of the Year: 194
Outlets at the End of the Year: 201
Net Change: +7

Company-Owned – U.S.

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 Schooley Mitchell Franchise

Schooley Mitchell: A Truly Recession-Proof Business Model

The Schooley Mitchell Franchise Saves Business Owners Money

Schooley Mitchell Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

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

This is a historic financial performance representation of active franchisees that operate a franchise substantially similar to the type offered in the Disclosure Document.

The following tables present unaudited information about the historical Annual Secured Revenue generated by 184 of Schooley Mitchell’s franchisees during the 12 months ending May 31, 2023 (the “Reporting Year”).

“Annual Secured Revenue” means the revenue a franchisee has received or expects to receive under all franchisee customer contracts that were signed during the Reporting Year. For example, if during the Reporting Year a franchisee signed a contract with a customer achieving that customer $60,000 in savings over three years and earning the franchisee a $30,000 commission from the customer paid over the life of that contract, that franchisee has obtained $30,000 of Annual Secured Revenue in the Reporting Year. Annual Secured Revenue does not include any deductions for fees, costs, or expenses.

The financial performance information is separated into two tables: one for Full-Time Franchisees, and one for Part-Time Franchisees. Schooley Mitchell does not track the number of hours its franchisees work, but it can determine through their interactions with its systems and staff which franchisees are dedicating their full time and attention to the franchised business (“Full-Time Franchisees”).

For ease of presentation, Schooley Mitchell has delineated Full-Time Franchisees as those franchisees obtaining Annual Secured Revenue of at least $4,000 per month during the Reporting Year. “Part-Time Franchisees” are those franchisees that obtain Annual Secured Revenue of less than $4,000 per month during the Reporting Year.

The franchise information contained in this Item 19 does not include data for (i) company-owned and company-affiliated outlets; (ii) the 20 franchisees who ceased operating during the Reporting Year; and (iii) the 48 new franchisees that began operating during the Reporting Year.

Part 1 – Annual Secured Revenue of Full-Time Franchisees for the 12 Months Ending May 31, 2023

1st Quartile

Number of Full-Time Franchisees: 15
Average Annual Secured Revenue: $801,346
Median Annual Secured Revenue: $453,765
Highest Annual Secured Revenue: $3,104,362
Lowest Annual Secured Revenue: $248,754
Number of Full-Time Franchisees Achieving the Average: 5
Percentage of Full-Time Franchisees Achieving the Average: 33%
Number of Full-Time Franchisees in Range Achieving the Average: 5
Percentage of Full-Time Franchisees in Range Achieving the Average: 33%

2nd Quartile

Number of Full-Time Franchisees: 15
Average Annual Secured Revenue: $173,857
Median Annual Secured Revenue: $172,864
Highest Annual Secured Revenue: $243,678
Lowest Annual Secured Revenue: $125,097
Number of Full-Time Franchisees Achieving the Average: 21
Percentage of Full-Time Franchisees Achieving the Average: 70%
Number of Full-Time Franchisees in Range Achieving the Average: 6
Percentage of Full-Time Franchisees in Range Achieving the Average: 40%

3rd Quartile

Number of Full-Time Franchisees: 16
Average Annual Secured Revenue: $102,685
Median Annual Secured Revenue: $105,763
Highest Annual Secured Revenue: $123,519
Lowest Annual Secured Revenue: $91,797
Number of Full-Time Franchisees Achieving the Average: 39
Percentage of Full-Time Franchisees Achieving the Average: 85%
Number of Full-Time Franchisees in Range Achieving the Average: 9
Percentage of Full-Time Franchisees in Range Achieving the Average: 56%

4th Quartile

Number of Full-Time Franchisees: 17
Average Annual Secured Revenue: $61,816
Median Annual Secured Revenue: $63,490
Highest Annual Secured Revenue: $73,021
Lowest Annual Secured Revenue: $48,851
Number of Full-Time Franchisees Achieving the Average: 56
Percentage of Full-Time Franchisees Achieving the Average: 89%
Number of Full-Time Franchisees in Range Achieving the Average: 9
Percentage of Full-Time Franchisees in Range Achieving the Average: 53%

All

Number of Full-Time Franchisees: 63
Average Annual Secured Revenue: $274,951
Median Annual Secured Revenue: $123,519
Highest Annual Secured Revenue: $3,104,362
Lowest Annual Secured Revenue: $48,851
Number of Full-Time Franchisees Achieving the Average: 13
Percentage of Full-Time Franchisees Achieving the Average: 21%
Number of Full-Time Franchisees in Range Achieving the Average: 13
Percentage of Full-Time Franchisees in Range Achieving the Average: 21%

The “1st Quartile” range refers to the top 25% of the franchisee count, ranked by Annual Secured Revenue, the “2nd Quartile” range refers to the next 25% of the franchisee count, and so on.

The “Average Annual Secured Revenue” is calculated by adding up all Annual Secured Revenue figures and dividing by the number of figures counted.

The “Median Annual Secured Revenue” is calculated by placing all Annual Secured Revenue figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.

Part 2 – Annual Secured Revenue of Part-Time Franchisees for the 12 Months Ending May 31, 2023

All

Number of Part-Time Franchisees: 132
Average Annual Secured Revenue: $13,253
Median Annual Secured Revenue: $11,087
Highest Annual Secured Revenue: $47,764
Lowest Annual Secured Revenue: $0
Number of Part-Time Franchisees Achieving the Average: 47
Percentage of Part-Time Franchisees Achieving the Average: 39%

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

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

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Schooley Mitchell: $274K Average Sales vs. $70.5K-$80.7K Franchise Cost

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Section I – Schooley Mitchell Franchise Costs

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