Wirth Business Credit
Date of Incorporation: 1988
Franchising Since: 1988
Headquarters: Minneapolis, Minnesota
Description: Winmark franchises Wirth Business Credit® leasing and financing services businesses. A Wirth Business Credit® Business offers an array of small-ticket equipment leasing and financing options funded through Winmark or its affiliates for business essential equipment and assets. The small-ticket equipment leasing and financing market generally covers equipment with a cost between $5,000 and $250,000.
Franchise Offer: The franchisor has developed a method of obtaining, processing and funding small-ticket financing transactions. The purchase of a Wirth Business Credit franchise permits: (i) to use Winmark's Trademarks and (ii) to obtain access to the distinctive operational and management attributes of the Wirth Business Credit® Business System.
Financial Assistance: If the franchisee meets credit standards, the franchisor may, through the Wirth Business Credit, Inc. subsidiary, lease equipment related to the Wirth Business Credit® business operations. If the franchisee chooses this option, the monthly payment and APR will depend on the value of the leased equipment, the type of leased equipment, financial health, credit history, the type of lease and other factors.
Training and Assistance: Before opening the franchise, the franchisor will provide the initial orientation and training program to the franchisee as part of the initial franchise fee. The training program covers several aspects of management and operation of an equipment leasing and financing business, including sales and marketing, business plan development, business management, computer operation, product knowledge and other topics Winmark may select. The session will take place over a period of 5 days.
Territory: The franchisee will not receive an exclusive territory. He or she may face competition from other franchisees or from other channels of distribution or competitive brands controlled by the franchisor.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with the option to renew for additional 10-year period(s). The fee for renewal is $5,000
Obligations and Restrictions: If the franchise is an individual, he or she must personally manage the franchised business. If operating more than one Business, the franchisee may delegate management duties for additional businesses to one or more managers. Although Winmark does not prohibit from being employed by a company other than the Wirth Business Credit® business, the primary job responsibility of the franchisee must be the operation of the franchised business, unless received written approval. The franchisee must offer and sell only those Products & Services that Winmark has approved
Total Number of Units: Number of franchised outlets at year ended 2007: 41
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000, reduced to $22,500 via Pioneer Program | $35,000, reduced to $22,500 via Pioneer Program |
| Marketing & Advertising | $5,000 | $10,000 |
| Start-up Supplies | $100 | $500 |
| Computer System | $4,000 | $6,500 |
| Front-end Software | $250 | $250 |
| Customer Relationship Management Software | $400 | $1,000 |
| Deposits and Business Licenses | $1,000 | $2,500 |
| Travel and entertainment | $50 per month | $1,000 per month |
| Miscellaneous Pre Opening Expenses |
$2,500 | $7,500 |
| Additional Funds - 3 Months | $3,830 | $10,260 |
| Total | $39,630 | $74,510 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Marketing Fee | $500 per year |
| Cooperative Advertising | Set by franchisees in participating market |
| Local Advertising Expenses | Minimum amount, when combined with cooperative advertising expenses is 4% of your Compensation |
| Advertising Fee | If Winmark imposes this fee, franchisee will pay up to 2% of Compensation, although cooperative and local advertising expenses will be offset by this amount. |
| Transfer Fee | $15,000 |
| Audit Expenses | Cost and expenses related to audit |
| Renewal Fee | $5,000 |
| Insurance | Will vary under certain circumstances. |
| Interest Expenses | Lesser of 18% per year or maximum rate permitted by law |
| Equipment | Lease Payment Will vary under certain circumstances |
| Software Maintenance Fee | $100 per year |
| Web Site Fee | Up to $250 per year |
| Costs and Attorneys' Fees | Will vary under circumstances |
The above information has been taken from the UFOC/FDD of Wirth Business Credit
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