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Budget Blinds Franchise Costs & Fees

Date of Incorporation: 1992
Franchising Since: 1994
Headquarters: Orange, California

Business Description: The franchised business is a mobile business for the retail sale and installation of blinds and other window coverings. Budget Blinds’ parent company is Home Franchise Concepts, Inc.

Franchise Offer: The franchise on offer is to conduct a Budget Blinds franchise as a mobile business for the sale and installation of window coverings, such as shutters, mini blinds, wood blinds, vertical blinds, draperies, pleated shades, cellular shades, roman shades, roller shades and solar shades. Franchisees use a van equipped with signs the franchisor specifies to make sales calls and perform installation work.

Financial Assistance: Budget Blinds provides financing for the initial franchise fee and territory fee to franchisees that meet its credit standards. Financing is not available to franchisees that receive a discounted Territory Fee under the VetFran program.

Training and Assistance: The training program lasts for 10 days. Upon reasonable notice and at no charge to the franchisee, Budget Blinds may require the franchisee or designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers to be relevant or appropriate to the successful operation of the System.

Territory: The franchisor grants the franchisee a protected territory with limited exclusivity, in which the franchisor will not establish a company-operated or franchised business that sells and installs window coverings using the system and marks. The franchisee’s territory will be described by United States Postal Service ZIP Codes in the franchise agreement. Each Territory will begin with approximately 30,000 households.

Term of Agreement and Renewal: The term of the franchisee agreement is 10 years with an option to renew for an additional 10 years, if conditions are met.

Obligations and Restrictions: The franchisor would prefer if the franchisee actively took part in the running of the franchised business. If they do not, the franchisee must employ at least one manager on a full time basis. The franchisee may offer and sell in the Franchised Business only goods and services that the franchisor has authorized the franchisee to sell. The franchisee does not have to sell all the products and services that the franchisor authorizes, but it is suggested that the franchisee does so.

Estimated Number of Units: 1,010

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $19,950 $19,950
Combined Initial Territory Fee and Additional Territory Fee $65,000 $120,000
Excess Costs of Training $250 $500
Work Vehicle $350 $32,000
Computer $0 $3,000
Mastercard/Visa Terminal $30 $500
Telephone Equipment $60 $120
Auto Insurance $1,000 $2,000
Commercial General Liability Insurance $500 $1,000
Contractor's License and Bond $0 $1,500
Additional Tools and Supplies $100 $1,500
Additional Funds (first 3 months) $12,000 $20,000
ESTIMATED TOTAL $99,240 $202,070
Other Fees
Type of Fee Amount
Royalty Monthly payment:
$300 - months 1-6
$700 - months 7-12
$1,100 - months 13 - 24
$1,500 from then on.
Advertising Fee Monthly payment: $1,000 until franchisor has 1500 franchise agreements. $1,500 from then on.
Technology Fee Currently $94.50 per month.
Telephone Fee $45 per month per line.
Initial Training First 2 attendees are free. Each additional attendee pays $100 per day.
Additional Territory Fee $50,000 if the franchisee simultaneously buys two Territories when he/she signs the first franchise agreement.
An amount equal to the then-current initial Territory fee if the franchisee buys an Additional Territory at a later time.
Encroachment Payment 60% of gross sales (revenue less cost of goods) in another franchisee's territory.
Key Account Commissions and Fees Franchisor negotiates each program individually with the Key Account.
Fees for Optional Referral Programs Not yet determined.
Transfer Fee The then-applicable transfer fee, currently $5,000 for each Territory transferred.
Transfer Lead Referral Fee The then-applicable transfer lead referral fee, currently $15,000, plus all broker fees the franchisor incurs.
Renewal Fee $1,000
Late Charges $100 late fee for royalties and advertising fees plus interest at 18% or the maximum legal rate, whichever is less.
Insufficient Funds Fee $25

The above information has been taken from the FDD of Budget Blinds. Year of FDD: 2016

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