Pet Butler Franchise Cost & Fees
Date of Incorporation: 2005
Franchising Since: 2005
Description: The franchisor is Pet Butler Franchise Services Corp., which sells franchises for businesses that offer and sell pet waste cleanup and removal services and related products and services under the trademark "Pet Butler."
Franchise Offer: The franchisor gives the right to sell pet waste cleanup and removal services and related products and services in a designated geographic area. Franchises operate from 1 business location located within the territory described in the franchise agreement or located within a 20 mile radius around the boundaries of the territory under the Pet Butler business system.
Financial Assistance: The franchisor does not offer direct or indirect financing, and does not guarantee any notes, leases or other obligations
Training and Assistance: Before the franchisee opens for business, the Operations Manager and any owners whom are required must have attended and satisfactorily completed the initial orientation and training programs. The franchisor provides the initial training program at no additional charge. Initial training generally requires approximately 1 week.
Territory: The franchisee will be granted a territory delineated by specific geographic boundaries. As long as the franchisee is in good standing during the term of the Franchise Agreement the franchisor will not operate, or license anyone other than the franchisee to operate, a Pet Butler Business in the territory.
Term of Agreement and Renewal: The length of the franchise term is 10 years, with the option to renew for 2 additional 5 year terms.
Obligations and Restrictions: The operation of the Pet Butler business in the territory must be directly supervised by a person designated as the operations manager. The operations manager may be one of the franchisor’s owners, but need not be. The franchisee may offer and sell only the products and services that have been periodically specified. The franchisee may not offer or sell any products or services that have not been authorized, and must discontinue any products or services that are disapproved.
Total Number of Units: Over 120 units
|Name of Fee||Low||High|
|Initial Franchise Fee||$22,900||$22,900|
|Mobile phone/e-mail device||$0||$300|
|Furniture, Fixtures, & Equipment||$0||$1,000|
|Computer Hardware & Software||$0||$1,000|
|Initial Local Advertising
|Additional Vehicle Signage||$0||$700|
|Additional Funds (for first 3 months of operation)||$3,000||$15,000|
|Name of Fee||Amount|
|Royalties||The greater of (i) 8% of Gross Sales or (ii) $25 per week|
|National Marketing, PR and Advertising Fund Contribution||The greater of (i) 2% of Gross Sales or (ii) $10 per week|
|Billing and Collections Center Fees||The greater of(i) $1 per current customer or (ii) $40 per week|
|Customer Billing fees (for paper invoices only)||Cost, currently $2,75 per invoice|
|Delinquent account collection fee||Varies|
|Local advertising expenditure requirement||$16,000 during the first agreement year and $24,000 during each subsequent agreement year.|
|Customer welcome packets and one month packets||Reasonable fee, currently $2,95 per welcome pack and $1.25 per one month packet|
|Marketing and customer relations materials||Reasonable fee|
|Special Promotional Programs||Varies|
|Additional Training||At franchisor’s option, a reasonable fee to cover the cost of training materials|
|Training for Replacement Personnel||At franchisor’s option, a reasonable fee based on rate of $200 per day if the training is conducted during a regularly schedule training class or $500 per day plus trainers' expenses if the training is conducted in a one-on-one session|
|On-Site Remedial Training||At our option, a reasonable fee based on our rate of $500 per day plus our trainers' expenses|
|Transfer Fee||$4,000, plus costs, including attorneys' fees|
|Securities Offering Fee||Reasonable costs to review the proposed offering|
|Renewal Fee||25% of the then-current initial franchise fee|
|Supplier Approval Fee||Reasonable expenses|
|Re-Inspection Fee||Cost of re-inspection|
|Audit Fee||Cost of audit|
|Insurance Fee||A reasonable amount based on expenses|
|Interest||1.5% per month or the maximum lawful rate|
|Tax Adjustment||The amount of the tax|
|Enforcement Costs||Cost to enforce the Franchise Agreement. Includes legal and court costs and reasonable attorneys' fees|
Date of FDD: 2007
The above information has been taken from the UFOC/FDD of Pet Butler
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