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EmbroidMe Franchise Cost & Fees

Date of Incorporation: 2000

Franchising Since: 2000

Headquarters: West Palm Beach, Florida

 

Business Description: EmbroidMe franchises are full service retail embroidery businesses. EmbroidMe provides embroidered, screen-printed apparel and/or advertising and promotional merchandise. This will include specific items such as golf/polo shirts, caps, jackets, denim, uniforms, logo reproduction, outerwear, towels, t-shirts, bags, aprons, photographic gifts, pens, mouse pads, cups/mugs, and magnetic business cards. EmbroidMe, Inc. is a member of the United Franchise Group, an affiliated group of companies.

 

Franchise Offer: EmbroidMe.com Inc. (EME) offers the right to own and operate a full service EmbroidMe Store. In the store the franchisee will use the franchisor’s trademark, trade name, proven and sophisticated procedures and trade secrets. The franchisee will service retail and business customers by providing them with embroidered, screen-printed apparel and/or advertising and promotional merchandise.

 

Financial Assistance: The franchisor is not obligated to offer directly or indirectly any arrangements for financing of the franchisee’s initial investment, his or her equipment or the continuing operation of his or her franchise. The franchisor does not guarantee the franchisee’s note, lease or any other obligation. The franchisor has arranged for equipment leasing through Brother International Corporation.

 

Training and Assistance: Prior to opening an EmbroidMe Store, the franchisee must attend and complete an extensive training program held at corporate headquarters in West Palm Beach, Florida. The franchisor will pay for the franchisee’s transportation to and from Palm Beach, their hotel and one daily meal for the duration of the two-week training period. An additional trainee may attend the training program with the franchisee. However, their travel and meals will be at the franchisee’s expense. Currently, the training program consists of approximately 59.5 hours of classroom training and 19.5 hours of on-the-job training. The franchisor will visit franchisees in their Store at least once each year in order to ascertain the progress of their EmbroidMe Store and to assist them. The franchisor provides one regional EME meeting per year and its World Expo convention.

 

Territory: The franchisee will be granted the right to operate an EmbroidMe Business from their store site within a Designated Territory. The Designated Territory will be a geographic area around the premises of the EmbroidMe Store. The area may consist of a specific mile radius or other area defined by city limits, highways or streets, zip codes, or other similar factors as the franchisor may determine. During the term of the Franchise Agreement, the franchisor will not establish either a company or affiliate owned EmbroidMe business or another EmbroidMe franchise within the Designated Territory or modify the franchisee’s Designated Territory without their written permission, provided that the franchisee is in complete compliance with the terms and conditions of the Franchise Agreement.

 

Term of Agreement and Renewal: The term of the franchise agreement is 35 years with an option to renew for an additional 35 years. The fee for renewal is $1,500. The franchisee must also remodel and sign releases at the time of renewal. The renewal agreement may contain materially different terms.

 

Obligations and Restrictions: The EmbroidMe Store must at all times be under the direct on premises supervision of someone who has completed the franchisor’s training program. The franchisee must also maintain a competent, conscientious, neat and trained staff where applicable. If the franchisee is an individual then they must directly supervise the store. The franchisor requires the franchisee to offer and sell only goods and services that have been approved. There are no limits on the franchisor’s right to make modifications to the approved goods and services from time to time. The Franchise Agreement does not require the franchisee to fix a specified or minimum price for any goods or services sold. The franchisor produces a suggested pricing list that the franchisee may change to adapt to the local market conditions and competition.

 

Estimated Number of Units: 430

 

Investment Tables:

Initial Investment

Purchase

Name of Fee Low High
Initial Franchise Fee $49,500 $49,500
Travel and Living Expenses while at Training School $210 ($15 per day) $490 ($35 per day)
Real Estate Varies Varies
Equipment Package Deposit and Processing Fee (if leased) $5,700 $30,602
Equipment Package $134,995 $134,995
Insurance $1,000 $2,000
Security Deposit Utility Deposits/Licenses $500 $3,000
Opening Supplies $500 $1,500
Additional Funds (0-6 months) $35,000 $55,000
Estimated Total  (real estate not included) $221,705 $246,485

 

Lease

Name of Fee Low High
Initial Franchise Fee $49,500 $49,500
Travel and Living Expenses while at Training School $210 ($15 per day) $490 ($35 per day)
Real Estate Varies Varies
Equipment Package Deposit and Processing Fee (if leased) $5,700 $30,602
Equipment Package $6,964 $32,641
Insurance $1,000 $2,000
Security Deposit Utility Deposits/Licenses $500 $3,000
Opening Supplies $500 $1,500
Additional Funds (0-6 months) $35,000 $55,000
Estimated Total  (real estate not included) $93,674 $144,131

 

Other Fees

Type of Fee Amount
Royalty 6% of gross revenues up to $540,00 and 3% of gross revenues from $540,001 to $1,000,000
Marketing Fee 1% of gross revenues.
Software Maintenance Fee $99 per month or the then current fee.
Transfer Fee The greater of $29,500 or then current transfer fee at time of transfer.
Online Sourcing Fee $99 per month or then current fee.
World Expo Attendance $1,000 to $1,300
Email Account Fee $1.00 per month per email address or then current fee.
Renewal Fee $1,500
Audit Cost of audit plus interest on underpayment

The above information has been taken from the FDD of EmbroidMe. Year of FDD: 2014

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