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 Inc. 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 58 hours of classroom training and 19.5 hours of on-the-job training.
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: 415
|Name of Fee||Low||High|
|Initial Franchise Fee||$42,500||$42,500|
|Travel and Living expenses while at training school||$210 ($15 per day)||$490 ($35 per day)|
|Equipment Package Deposit and Processing Fee (if leased)||$5,700||$30,602|
|Software Conversion Fee||$0||$20|
|Yellow Page Advertisement (for 1-6 months)||$300||$1,500|
|Security Deposit Utility Deposits/Licenses||$500||$3,000|
|Additional Funds (0-6 months)||$35,000||$55,000|
|Approximate totals if the franchisee leases the equipment (less real estate)||$85,160||$135,902|
|Approximate totals if the franchisee's equipment is purchased outright (less real estate)||$205,935||$230,965|
|Name of Fee||Amount|
|Royalty||6% of the franchisee's gross revenues|
|Marketing Fee||1% of the franchisee's gross revenues|
|Software Maintenance Fee||$50 or $75 per month, or the then current fee|
|Transfer Fee||The greater of $22,500 or then current transfer fee at time of transfer.|
|Website Hosting and Maintenance Fee||$1400 per year or then current fee.|
|Email Account Fee||$1.00 per month per email address or then current fee.|
|Audit||Cost of audit plus interest on underpayment|
Date of FDD: 2011
The above information has been compiled from the FDD of EmbroidMe along with online sources.
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