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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: The franchisor, 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 has arranged for equipment leasing through several equipment leasing companies. The terms of payment and other conditions of an equipment lease vary by leasing company and are subject to change without notice. The franchisor does not guarantee the franchisee’s note, lease or any other obligation.

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 51 hours of classroom training and 28 hours of on-the-job training. The franchisor will visit franchisees in their store periodically in order to ascertain the progress of their EmbroidMe store and to assist them. The franchisor provides its World Expo convention and may also host regional EmbroidMe meetings. Regional meetings would generally not be held in the same year as the World Expo convention. Although it is not required, franchisees may attend a refresher-training program or send their representative to be trained at any time in the future.

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: 420

Investment Tables:
Initial Investment for Purchase
Name of Fee Low High
Initial Franchise Fee $49,500 $49,500
Travel and Living Expenses while at Training School ($15 to $35 per day) $210 $490
Real Estate Varies
Leasehold Improvements $0 $10,000
Equipment Package $89,995 $89,995
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) $176,705 $213,485
Initial Investment for Lease
Name of Fee Low High
Initial Franchise Fee $49,500 $49,500
Travel and Living Expenses while at Training School ($15 to $35 per day) $210 $490
Real Estate Varies
Real Estate Service Charge $0 $2,500
Equipment Package Initial Payments and Processing Fee (if leased) $2,723 $2,723
Leasehold Improvements $0 $10,000
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) $89,433 $126,713
Other Fees
Type of Fee Amount
Royalty 6% of gross revenues up to $540,000 and 3% of gross revenues from $540,001 to $1,000,000
Marketing Fee 1% of gross revenues.
POS Software & Website Maintenance Fee $199 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 Fees vary, currently approximate fee ranges from $49 to $69 per month.
World Expo Attendance $1,000 to $1,300
Email Account Fee $1 per month per email address or then current fee.
Employee Training Fee $225 or then current fee per person attending training plus travel & hotel expenses.
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: 2016

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