Ziebart Franchise Cost & Fees
Date of Incorporation: 1954
Franchising Since: 1963
Headquarters: Troy, Michigan
Business Description: The franchisor is Ziebart Corporation. It has been and intends to continue doing business under the name of Ziebart Corporation. The franchisor offers and sells Ziebart franchises. It also sells inventory, equipment, products and supplies to its franchisees. Ziebart has not offered franchises in other lines of business.
Franchise Offer: The Ziebart franchise is a specialty business that sells protection, detailing, window tint, and accessories. The services provided by a Ziebart franchise include: structural protective coatings, detailing and appearance protective coatings, scratch repair, scratch and scuff, window treatment, accessories, polyurethane protective coatings, and glass replacement and repair. Franchisees are required to offer all product and service categories, except sprayed-on bed liners, dent removal, accessories, and automotive glass, which are optional.
Financial Assistance: Ziebart Corporation will assist franchisees in finding financing. Ziebart Corporation does not guarantee a franchisee’s note, lease or obligation. Franchisees of the Ziebart system are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program.
Training and Assistance: The initial training for all the Ziebart services is approximately six weeks in duration, consisting of both classroom instruction conducted at its headquarters in Troy, Michigan, and on-the-job training. Initial or ongoing training programs held at the Troy Office are available to franchisees and their employees free of charge. Costs of travel and living expenses during the training are the responsibility of franchisees. Additional training on an on-going basis is also offered through national, regional and local seminars, group meetings and workshops. Franchisees must attend the annual seminar at least once every two years, regardless of whether it is held regionally or nationally. Field training for most services is also available. The cost of field training is $500 per day.
Territory: The franchise is only granted for a specific location, which will be designated in the license agreement. The franchisee will not receive an exclusive territory for the Ziebart Franchise. Franchisees may face competition from other franchisees, from outlets that owned by Ziebart, or from other channels of distribution or competitive brands that Ziebart controls. However Ziebart has established a Market Development Policy. This policy provides new franchisees with a protected area of a three mile radius from the store for a period of three years from the date of the license agreement.
Term of Agreement and Renewal: The length of the initial franchise (license) agreement is 10 years. To renew, the franchisee must meet conditions prescribed in Ziebart Corporation's then-current Franchise Standards.
Obligations and Restrictions: Ziebart franchisees must diligently and fully exploit the rights in the license agreement by personally devoting full time and best efforts and, in case more than one individual owns the business, one so designated must personally devote full time and best efforts to the operation of the franchised business. Franchisees must have on the premises at all times a person who is trained and certified in the technical training program for each service offered. Franchisees must maintain a full line of the licensed products and services identified in the License Agreement.
Estimated Number of Units: 400
|Name of Fee||Low||High|
|Initial Franchise Fee||$30,000||$30,000|
|Opening Inventory/ Supplies||$10,000||$15,000|
|Exterior/ Interior Decor Package||$8,000||$14,000|
|Utilities, Rent & Deposits||$3,000||$10,000|
|Grand Opening Advertising||$5,000||$7,000|
|Additional Funds (Initial Period)||$50,000||$65,000|
|Type of Fee||Amount|
|Royalty||8% on all products except those listed in Item 6 of the franchisor’s FDD, which are 5% of total weekly gross sales.|
|Minimun Royalty||$387.00 USD per week.|
|Advertising Trust Fund (ATF)||5% of total weekly gross sales via EFT.|
|Advertising Production Fee||$2,350 per year.|
|North American Liability Fund (NALF)||$1.00 to $15.00 subject to change based upon 90 days written notice for each rustproofing warranty.|
|Late Charges - Royalty||2% per month.|
|Late Charges - Reports||$25.00 USD per week.|
|Audit Surcharge||50% of royalty due on unreported sales & audit expenses if sales are understated more than 5%|
|Renewal Fee||15% of the Ziebart new franchise fee charged at the time of renewal.|
|Transfer Fee||$15,000. Reduced fees are charged in certain circumstances.|
|Reminder Card Program||$1.00 computerized reporting.|
|Central Billing for National Fleet Accounts||3% of the amount charged by the processing franchisee.|
|Field Training Expenses||In franchisee area, $500 per day.|
|Training Cancellation Fee||$100 each occurrence.|
|Glass Repair and Replacement Module||$300 annually for one location, with one computer, and yearly maintenance.|
|Ziebart Gift Cards and Certificates||Up to 1% of costs incurred by Ziebart.|
|I.S. Fees||Repair, Restoration, Rebuilding & Modification of Bart for Windows Database - $100-$300 per hour;
Basic Hardware or Network Trouble Shooting - $125 per hour with 1 hour minimum;
Standard Bart for Windows Automated Backup Support Program - $300 per year;
Premium Bart for Windows Automated Backup Support Program - $749 per year;
Platinum Bart for Windows Automated Backup Support Program - $995 per year.
|Additional Location Fees||$12,000 for the second location, & $10,000 for the 3rd or additional location to an existing franchisee.|
The above information has been taken from the FDD of Ziebart. Year of FDD: 2015
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