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Filta Franchise Cost & Fees

Date of Incorporation: 1996

Franchising Since: 1996

Headquarters: Orlando, Florida

 

Business Description: Filta Group Inc. is the franchisor. At present, the services consist of FiltaFry fryer maintenance service, FiltaBio waste cooking oil collection service, and FiltaCool service for refrigeration and walk-in-coolers.

 

Franchise Offer: Filta Environmental Kitchen Solutions franchisees provide services to restaurants, hotels, casinos, amusement parks, hospitals, universities, catering establishments, and industrial kitchens.

 

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee franchisees’ promissory note, lease, or other obligation.

 

Training and Assistance: Successful completion of the initial training program is mandatory for the principal owner of the franchise and the designated operator, if other than the principal owner. The franchisor can require franchisees and their personnel to attend additional or refresher training programs and it may charge a fee for this training. Until the earlier of 90 days after the franchisee’s opening date of the business volume first exceeds $1,000 per week, franchisees must participate in all remote training sessions scheduled by Filta. If the franchisee’s business volume has not reached $1,000 per week by the end of 3 months of operation, franchisees must hold a business evaluation conference call with the franchisor and establish a business development plan.

 

Territory: The franchise is for a specific geographic area. The franchisor typically defines the territory using county boundaries and/or interstate highways. It also uses other criteria, particularly in areas with high population density. There is no minimum size for a territory. The territory is exclusive. While the franchise agreement is in effect, Filta will not operate or license any person other than the franchisee to operate a business offering Filta Environmental Kitchen Solutions Services under the Filta name (or any other names and marks) from fixed premises or a van within the territory.

 

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date of the franchise agreement. Two renewal terms of 10 years each are available, if requirements are met.

 

Obligations and Restrictions: The franchisor requires franchisees to form a corporation or limited liability company to engage in the Filta business. Franchisees may only the products and services that the franchisor specifies in the manual as approved Environmental Kitchen Solutions Services.

 

Estimated Number of Units: 250

 

Investment Tables:

Initial Investment

Name of Fee Low High
Deposit Fee $5,000 $15,000
Territory Fee (less the deposit fee paid) $35,000 $35,000
Opening Package $49,950 $49,950
Van (includes $2,500 initial payment and $350 - $450 per month for first 3 months) excluding applicable sales and use tax $3,550 $3,850
Travel Expenses for Training $250 $1,500
Lodging Expenses during Field Training $300 $500
Insurance $2,000 $5,000
Computer Hardware and Software $0 $1,000
Additional Funds - 3 months $2,500 $7,500
Estimated Total $93,550 $104,300

 

Other Fees

Type of Fee Amount
Service Fee $565 times the number if Mobile Filtration Units (MFU) that the franchisee has in operation, the number of vans that the franchisee has in operation, or the number of territories in which the franchisee operates, whichever number is the greatest.
Advertising/Promotions Levy $135 per month.
MFU Filters $387 per case of 20 filters.
Spare Parts The then-current prices.
FiltaCool Filters and Holders $3 per filter and $9 per holder.
FiltaCool Service Fee $3 per filler per month.
FiltaBio Fee 12.5% of the franchisee’s Gross Monthly Revenue from the sales of waste cooking oil.
Out-of-Territory Fee Any and all revenue that the franchisee derives from unauthorized activities outside of the franchisee’s defined territory.
In addition, if Filta grants a franchise for a territory in which the franchisee has engaged in unauthorized activities and Filta makes any concessions to the franchisee because of the franchisee’s activities, the franchisee must pay Filta the value of the concessions.
National Account Contracts Up to 10% of amount invoiced to National Account Contract customer. Certain National Account Contracts may require additional volume rebates from Filta.
Centralized Accounts Up to 5% of amount invoiced to Centralized Account customer.
Late Report Fee $75 per late for each week the report is late.
The franchisor can also charge the franchisee for the cost of an accountant to inspect the franchisee’s records of a report is 3 weeks late.
Online Systems User Fee $46 per month per user, beginning in the 1st month after the franchisee is given access.
Geo-Locator Subscription 50% of monthly tracking fee.
Brand Integrity of Quality Assurance Assessment The franchisor’s out-of-pocket costs, including fees paid to service vendors; the vendor’s current fee is $225
Expenses of Examination or Audit Reasonable and customary cost, including travel and lodging expenses for the examiners or auditors. The franchisor estimates that the cost would not exceed $950 for an audit by correspondence. The franchisor estimates that the cost would range from $2,500 to $3,500 for an on-site audit.
Fee for Additional Training $350 per day.
Fee for Additional Trainee $175 per day.
Fee for In-Person Assistance $350 per day plus travel and lodging expenses for Filta representatives.
Transfer Fees $250 for each individual who attends “Discovery Day” or similar event in connection with the proposed transfer, whether or not the transaction goes forward.
If transaction goes forward, $950 per individual to cover Filta’s costs of investigating the proposed transferee(s). Filta will credit the $250 fee toward payment of the $950 fee if it is for the same individual.
In the case of sale of the entire Filta business, the franchisee must also pay a transfer fee of 10% of the purchase price if the franchisor referred the buyer to the franchisor, or 7.5% if the franchisee found the buyer without the franchisor’s assistance.
Administrative fee of $750 if the franchisee transfers the franchise agreement to a corporation that the franchisee forms after the closing date.
Listing Fee for Resale Assistance $495
Renewal Fee None for the first 10-year renewal term.
For the final 10-year renewal term, the renewal fee is 5% of the average gross revenue for the final two years of the expiring term, but will not exceed $75,000
Operation Fee in Case of the Franchisee’s Death or Incapacity $150 of the total costs of the manager provided by Filta.
Operation Fee in Case of the Franchisee’s Ceasing to Trade Filta’s costs in operating the franchisee’s Filta business.
Termination Fee Service Fee times 25% to 65% of the number of months remaining in the franchise term.
Liquidated Damages for Failure to Return MFU $20,000 per MFU.
Indemnification Filta’s actual costs.

The above information has been taken from the FDD of Filta. Date of FDD: 2015

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