Budget Blinds
Date of Incorporation: 1992
Franchising Since: 1994
Headquarters: Orange, California
Country: U.S.
Business Description: The franchised business is a mobile business for the retail sale and installation of blinds and other window coverings. The franchisor has no predecessors. Budget Blinds parent company is Home Franchise Concepts, Inc.
Franchise Offer: The franchise on offer is to conduct a Budget Blind 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, duettes, and silhouettes. The franchisee will use a van equipped with signs that the franchisor specify to make sales calls and perform installation work.
Financial Assistance: If the franchisee meets the franchisor’s credit standards, they will, at the franchisors request, finance 100% of the Initial Franchise Fee over a period of 24 months at an APR of 10%. No separate personal guaranty is required to obtain financing. Payments begin with the first royalty due date. The note can be prepaid without penalty at any time during its term.
Training and Assistance: The training program runs for 10 ½ weeks. The training consists of 76.5 hours of classroom training and 2 hours ‘on the job’. The training covers such things as Office Flow, Daily Procedures and Installation Specialties, Product Knowledge/ Soft Treatments, Discounts & Multipliers and Product Knowledge and Installation.
Territory: The franchisor grants the franchisee a Territory 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 with an option to renew for an additional 10 years. There is a renewal fee of $1,000.
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.
Total Number of Units: Nearly 800 units.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $24,950 | $24,950 |
| Combined Initial Territory Fee and Additional Territory Fee | $50,000 | $90,000 |
| Excess costs of Training | $250 | $500 |
| Work Vehicle | $350 | $20,000 |
| Computer | $0 | $2,000 |
| 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 |
| Initial Marketing | $0 | $5,000 |
| Additional Tools and Supplies | $100 | $500 |
| Additional Funds (first three months) | $2,000 | $5,000 |
| TOTAL | $79,240 | $153,070 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalties | Monthly payment: $300-months 1-6 $700-months 7-12 $1,100-months 24 $1,500 from then on |
| Advertising Fee | $1,000 until the franchisor has 1500 franchise agreements. $1,500 from then on |
| Monthly Toll Free Number Use Fee | $29.50 per month |
| Initial Training | First 2 attendees are free. Each additional attendee pays $100 per day. |
| Additional Territory Fee | $40,000 for an additional territory if the franchisee simultaneously buys two Territories when they sign the first franchise agreement. Otherwise, the franchisor’s then-current Initial Territory Fee |
| Encroachment Payment | 60% of the franchisee's gross sales in another franchisee's territory |
| Optional Customer Referral Fees | Not yet determined |
| Transfer Fee | The franchisor's then-applicable transfer fee, currently $5,000 for each territory transferred. |
| Lead Referral Fee | The franchisor's then-applicable lead referral fee, currently $10,000, plus all brokerage fees they incur. |
| 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 |
Date of FDD: 2008
The above information has been taken from the UFOC/FDD and onine sources of Budget Blinds
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