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Top Ten Percent Franchise Costs & Fees

Date of Incorporation: 2012
Franchising Since: 2013
Headquarters: Westerville, Ohio

Business Description: The franchisor is TTP Franchising, Inc. Franchisees connect businesses to consumers using mobile and digital marketing channels, i.e., smartphones, tablets, desktops and laptop computers. Businesses pay franchisees a monthly fee to be listed on the franchisee’s service and consumers would save on purchases they make from those businesses through exclusive, special member’s pricing that Business Members provide to Consumer Members.

Franchise Offer: The franchised business is a member-driven business recognition and consumer savings program.

Financial Assistance: The franchisor does not provide financing, but, upon franchisees’ request, the franchisor can refer franchisees to a lending consultant / loan broker that provides access to a number of financial solutions, including SBA-guaranteed loans, use of their 401K plan or IRA as a source of funds, term loans, equipment leasing, and secured and unsecured lines of credit. The company offers various services to assist franchisees in obtaining funds. Loan amounts, interest rates, and loan terms and conditions vary depending upon the type of financing for which franchisees qualify.

Training and Assistance: Franchisees, their Designated Owner, or their Director of Operations must attend and successfully complete all phases of the initial training program and complete it to the franchisor’s satisfaction at least 15 days before franchisees begin operating under the franchise agreement. The franchisor will provide additional training to franchisees during the term of the agreement when it believe that additional training is needed. The franchisor anticipates that any additional training program will be primarily web-based. Additional training programs will be offered from time to time. If the franchisor advises franchisees that attendance at an additional training program is mandatory, they must attend and complete the program, at their own expense, to the franchisor’s reasonable satisfaction.

Territory: One or more exclusive Territories will be awarded to franchisees at the time that they enter into a franchise agreement with the franchisor. Franchisees may opt to purchase a 1-Territory franchise or they may purchase a franchise with contiguous multiple Territories. Each Territory will be composed of contiguous zip codes and will include at least 5,500 businesses. Except for certain rights reserved, the franchisor will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks, and it will not authorize any other franchisee or affiliate to enroll new Business Members within the Territory, operate any company-owned Program within the Territory, conduct advertising or marketing that targets prospective Business Members in the Territory, or authorize any other Top Ten Percent franchisee, affiliate or company-owned Program to publish or promote an address within the Territory as its office address.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the start date. At the franchisee’s request, the franchisor may renew the agreement for 4 more 5-year terms if the conditions are met.

Obligations and Restrictions: Because a Top Ten Percent Program is intended to be operated as a home based business, it is unlikely that employees, if any, will work from the same premises as franchisees will. Therefore, although the Program needs supervision, the franchisor does not expect anyone to exercise “on-premises” supervision. If franchisees can show that they have at least $20,000 more in working capital than the amount the franchisor requires of similarly situated franchisees that have purchased the same number of Territories as franchisees with their franchises, they may turn over supervision of their program to a Director of Operations who will have overall responsibility for the business. If franchisees can show that they have at least $10,000 more in working capital than the amount the franchisor requires of similarly situated franchisees that have purchased the same number of Territories as franchisees with their franchises, they may hire a Business Recognition Consultant and turn over the outside, day-to-day, field responsibilities such as Assessment Interviews to that person. Franchisees, their Designated Owner or Director of Operations will still have overall responsibility for the business. Franchisees must use and sell all the goods and services and only the goods and services that the franchisor has authorized franchisees to provide. If, from time to time, the franchisor decides to make changes in the goods and services they are authorized to provide, they must comply with the changed requirements at their own expense. The mobile devices the franchisor specifies must be dedicated for use in the franchised Program. This means that franchisees must purchase this equipment from the designated supplier even if they already own the same type of equipment. Franchisees must operate their program in total compliance with the standards and specifications stated in the Manual.

Estimated Number of Units: 25

Investment Tables:
Initial Investment for a One Territory Franchise
Name of Fee Low High
Initial Franchise Fee $24,900 $24,900
Insurance (Quarterly Installment) $128 $256
Printed Literature, Crystal Awards, & Winner Decals $1,800 $1,800
Digital Equipment $500 $1,500
Software $252 $575
Work Vehicle – Lease $0 $1,500
Business Licenses and Sales Tax Deposits $35 $250
Legal and Accounting Fees $1,000 $2,000
Training Expenses $1,050 $1,700
Additional Funds - Pre-opening and 1st 90 days (Working Capital) and Grand Opening Advertising $19,500 $23,000
ESTIMATED TOTAL $49,165 $57,481
Other Fees
Type of Fee Amount
Set-up Fees $12 one-time fee for each new VIP or Promo Business Member in the Territory.
Listing Fees $40 per VIP Business Member or, beginning in the 13th month after the start date, a minimum monthly Listing Fee of $360, whichever is more.
National Advertising Fund Contributions $9 per VIP Business Member in your Territory(ies).
Cost of Audit The actual cost of performing the audit if the audit discloses an underpayment of 3% or more of the total Set- Up Fees, Listing Fees, national advertising fund contributions or any other ongoing payments franchisees are obligated to make to the franchisor for the period audited.
Training Fees/td> $1,200
Payment for Proprietary Products The full purchase price of the product plus shipping costs and tax.
Renewal Fee $2,500 if franchisees have a 1- Territory franchise,
$3,500 if franchisees have a 2- Territory franchise,
$4,500 if franchisees have a 3- Territory franchise and
$1,000 more for each additional Territory.
Transfer Fee $3,995 for a 1-Territory franchise, $4,995 for a 2-Territory franchise, $5,995 for a 3-Territory franchise, and $1,000 more for each additional Territory.
Annual Meeting Registration Fee f franchisees have a 1- Territory franchise, the franchisor will charge a registration fee of $395 for 2 attendees at the Top Ten Percent annual meeting. If franchisees have a 2-Territory franchise, the fee will be $495 for 3 attendees. If franchisees have a 3-Territory franchise, the fee will be $595 for 4 attendees.
Declined Payment Charge $35 or our actual expense, whichever is more.
Administrative Processing Fee For Late Payment Or Report $50
New Products and/or Services Not to exceed 8% of the suggested retail price.

The above information has been taken from the FDD of Top Ten Percent. Year of FDD: 2015

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