Dent Doctor
Date of Incorporation: May, 1988
Franchising Since: January, 1990
Address: Little Rock, Arkansas
Description: Dent Doctor franchises the right to operate a paintfree automotive dent removal business. The franchisor has developed a system of paintfree dent removal services and ancillary automotive appearance services. The Dent Doctor business features same day auto appearance services and the removal of minor dents; door dings and hail damage from vehicles with a process that requires "no painting".
Franchise Offer: Dent Doctor franchises the right to operate a business using the Dent Doctor System from a retail service center along with one or more Mobile Vans. The franchisee must pay a non refundable lump sum franchise fee when they sign the franchise agreement of $13,900 for a territory with up to 95,000 populations; and $23,900 for a market with a population of 95,001 to 200,000 people. For larger markets, there will be an increased franchise fee depending on the size of the population.
Financial Assistance: Dent Doctor does not offer direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: Training will total 25 to 30 days of instruction. The franchisee, their principal, employee, or representative must complete the initial technical training to the franchisors satisfaction. The franchisor will train the individual franchisee, or one principal or an employee or representative for the $13,900 Franchise Fee and two as a part of the $23,900 Initial Franchise Fee payment.
Territory: The franchisee will receive a non-exclusive territory, called the protected territory, in which they are authorized to operate their Franchised Business. During the term of the Franchise Agreement, if the franchisee is in compliance with the Franchise Agreement, Dent Doctor will not operate a Dent Doctor System business or grant franchises for a similar or competitive business within the Protected Territory without the franchisee’s written consent. The franchisee cannot advertise or solicit orders outside of the protected territory.
Term of Agreement and Renewal: The term of franchise is for 10 years with the option to renew for 2 successive 10 year terms. There is a renewal fee of $1,500 or the actual legal expenses incurred by Franchisor affecting the renewal, whichever is more.
Obligations and Restrictions: If the franchisee or their principal does not participate in the full-time operation of a Center they will be required to designate an individual who will assist in the management of the Center. Dent Doctor requires the franchisee to offer and sell only those goods and services that meet the Dent Doctor standards of quality.
Total Number of Units: Total number of franchised units for 2006: 30
Investment Table:
Initial Investment:
| Name of Fee |
Low Range Store Front - Low |
Low Range Store Front - High |
Mid Range Store Front - Low |
Mid Range Store Front - High |
|---|---|---|---|---|
| Initial Franchise Fee |
$13,900 |
$13,900 |
$23,900 |
$23,900 |
| Vehicle Down Payment and Lease Cost |
$650 |
$15,000 |
$650 |
$15,000 |
| Real Estate and Improvements |
$3,000 |
$8,800 |
$4,500 |
$8,800 |
| Signage |
$1,200 |
$2,500 |
$2,100 |
$3,500 |
| Living Expenses for Initial Training |
$1,900 |
$2,500 |
$1,900 |
$2,500 |
| Custom Tools Cost |
$4,000 |
$5,000 |
$4,000 | $5,000 |
| Standard Tools, Supplies, Equipment |
$1,800 |
$2,800 |
$2,100 |
$2,800 |
| Optional Equipment |
$2,000 |
$4,000 |
$3,000 |
$4,000 |
| Insurance |
$3,000 |
$4,500 |
$3,000 |
$4,500 |
| Rent, 1st Month |
$1,500 |
$3,900 |
$3,000 |
$4,500 |
| Miscellaneous Opening Costs |
$1,600 |
$1,800 | $1,800 |
$2,500 |
| Advertising and Promotion |
$3,000 |
$4,500 |
$4,500 | $6,500 |
| Prepaid Expenses |
$1,400 |
$2,100 |
$1,300 |
$2,100 |
| Additional Funds/ Working Capital -3 months |
$13,500 |
$15,000 |
$18,500 |
$20,000 |
| Optional Grand Opening Assistance |
$1,800 |
$7,500 |
$1,800 |
$7,500 |
| Total |
$54,800 |
$80,900 |
$76,600 |
$100,200 |
Ongoing Costs:
| Name of fee | Amount |
|---|---|
| Royalty | 6% of Gross Sales of paint-free dent and 3% of all other Gross Sales, as defined in the Franchise Agreement, during a calendar month; or $500, whichever amount is greater. |
| Initial Technical Training | The franchisor will provide the 4 week initial technical training program and materials for the franchisee or one Principal, employee or representative at no additional charge. |
| Training of Additional or Replacement and Successor Personnel | The franchisee must pay for technical training of any additional trainees at the then-current training rate. The current fee is $1,250 per week per additional person. |
| Manager Training | The franchisor will provide a manager training program for the individual who will be designated Manager of the Center at no charge. Subsequent or replacement Managers will be charged the then-current training fee. The current training fee is $1,250 for a 5 day program. |
| Continuing Training, Education | The continuing training fee is $250/day. |
| Additional Assistance | Based upon nature of assistance requested. |
| Transfer | $2,500 or the actual legal fees incurred by Franchisor effecting the transfer, whichever is the greater amount; plus cost of training new representative(s). |
| Supplier Evaluation Fee | Not to exceed $150. |
| Audit | Audits are at our expense unless the audit reveals an under statement in any payment to us of 3% or more. In which case the franchisee shall pay for the audit and all cost and expenses connected with the audit, including travel, lodging, wage expenses and reasonable accounting and legal costs. |
| Late Payments | For any late payments the franchisee must pay the amount in full and pay interest on the late amount from the date due at rate of 2% above prime as published in the Southwestern edition of the Wall Street Journal. |
| Renewal Fee | Up to $1,500 or the actual legal expenses incurred by Franchisor affecting the transfer, whichever is more. |
| Operating Manual Replacement Fee | $500 |
The above information has been taken from the UFOC/FDD of The Dent Doctor.
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