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Geeks on Call Franchise Cost & Fees

Date Incorporation: 2001

Franchising Since:  2001

Headquarters: Virginia

Description: Geeks on Call operate a computer support and training businesses. Their services are targeted to residential and small business computer users. The 1-800-905-GEEK system utilizes special marketing techniques, quality control and operating procedures to facilitate the provision of computer support and training services.

Franchise Offer:
The franchise on offer is to own and operate a computer solutions business providing services at the customer's site using our "1-800-905-GEEK" and "Geeks on Call" trademarks.

Financial Assistance: The franchisor may finance up to 50% of the initial franchise fee if the franchisee are acquiring a single Unit Franchise. Whether the franchisor will extend financing and the amount of financing will vary depending on, among other factors, the availability of funds, the franchisees creditworthiness, the market conditions in the area, and the franchisees compliance with existing Franchise Agreements. The interest rate is typically 12%, but can vary depending on the franchisees creditworthiness, and the franchisors cost of funds. Financing must typically be repaid over one to seven years through monthly payments.

Some of the franchisees have obtained financing through the U.S. Government's Micro Enterprise Loan Program, which may allow the franchisees to borrow up to $35,000 from a development agency in their area that participates in the program administered by the U.S. Small Business Administration. The franchisor does not have a written agreement with any development agencies to provide financing, and the franchisor does not guarantee financing, except under exceptional circumstances.

The franchisor does not guarantee any notes, leases or obligations related to the franchise.

Training and Assistance: The franchisors provide a five-day operations training program which addresses critical aspects of operating a 1-800-905-GEEK business. The franchisee and their designated manager must attend and successfully complete the training before operating a 1-800-905-GEEK franchise. The franchisee does not charge for this operations training, but the franchisee is responsible for any expenses that might incur as a result of attending operations training, such as travel, lodging and entertainment.

Territory: The franchise system is designed to provide the most efficient possible service to all customers, therefore the "territorial rights" granted to the franchisee are neither "exclusive" nor typical of other franchises. The franchisee will receive a primary geographic area of responsibility within which they will be primarily responsible for providing service to customers located within that geographic area. The customer service program relies upon the dispatcher services to direct available 1-800-905-GEEK technicians to respond to customer calls. Although that normally results in calls being assigned to franchisees in whose territory the customer is located, if a franchisee is busy servicing another customer or is otherwise incapacitated, a neighboring franchisee may be directed to service the customer. The franchisee is not entitled to any compensation from the franchisor or from another franchisee who responds to a service call in the franchisee’s territory.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years with an option to renew for successive 10 year terms if the franchisee is not in default of any provision of the franchise agreement

Obligations and Restrictions: The franchise services must be under the franchisees direct supervision and control and/or under the direct supervision and control of a full time general manager that the franchisee has approved. The franchisor will not approve a general manager before his successful completion of the operations training. The general manager must have a computer services background, but need not have any equity interest in the franchised business. For the duration of the franchise, the franchisee is restricted from offering products or services other than the franchise services, unless they receive the franchisors prior written consent.

Total Number of franchises Units: The total number of franchised units for year 2007: 270

Investment Tables:
Initial Investment:

Name of fee Low High
Initial Franchise Fee $3,000 $25,000
Initial Advertising Fee $15,000 $15,000
Travel and Living Expenses While Training $100 $1,500
Equipment, Supplies & Inventory $3,000 $5,000
Vehicle $1,250 $18,750
Real Property $0 $2,400
Office Furnishings and Fixtures $0 $2,500
Deposits & Permits $500 $1,000
Insurance $1,000 $1,000
Weekly Advertising Fee (1st 3 months) $3,300 $33,000
Additional Funds -3 months $10,000 $15,000
Totals $59,150 $90,450

Ongoing fees:

Name of fee Amount
Royalty Fee The franchisee must pay a royalty fee of 11% of all Gross Revenues.
Advertising Fee $275 weekly.
Service Agreement Marketing (optional) Telemarketing $30 per appointment.
Complaint Fee $50
Service Assistance Currently $120 per labor hour plus expenses.
National/ Regional Accounts 10% on collected monies
Sales Assistance 10% on Gross Revenues from customers generated directly through the franchisors efforts and serviced by the franchisee
Interest on late payments 18% or the highest amount permitted by law
Audit Cost of audit will include employees' travel, room and board expenses.
Additional Training $1,000 per day.
Transfer Fee $5,000
Late Report Fee $200 per report due
Amendment Fee $2,500


The above information has been taken from the UFOC/FDD of Geeks on Call

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