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Transworld Business Advisors Franchise Costs & Fees

Date of Incorporation: 2007
Franchising Since: 2007
Headquarters: West Palm Beach, Florida

Business Description: A Transworld business is a franchise operated from a single location in a Designated Marketing Area. A franchisee will operate a business brokerage assisting sellers and buyers in the purchase and sale of existing businesses which can include existing franchised businesses. A franchisee will offer lead referral services for franchisors by recruiting and meeting with prospective franchisees to introduce them to various franchise concepts and assist them in identifying the franchise concept most suitable to them. Franchisees may also assist existing business owners who wish to establish a franchise system for their business.

Franchise Offer: The franchisee will own and operate a Transworld business which will serve as a broker/intermediary to facilitate the purchase and sale of existing businesses which can include existing franchised businesses and as a referral agent for franchisors.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing; nor guarantees any note, lead, or obligation.

Training and Assistance: Prior to opening a Transworld agency, franchisees must attend and complete to the franchisor’s satisfaction an extensive initial training program held at the corporate headquarters in West Palm Beach, Florida and at TBB’s Transworld agency in Fort Lauderdale, Florida. The franchisee’s training fees are covered in their initial franchise fee. The franchisor will provide transportation to and from West Palm Beach, hotel accommodations and one daily meal. The franchisee may bring additional persons to the initial training at a cost of $295 or the then current fee per person and will be responsible for their travel, hotel and meal expenses. The franchisor also conducts a five day training program in West Palm Beach, Florida for salespersons. All new salespersons hired must attend. The fee is $295 to attend and the franchisee is responsible for their travel, hotel and meal expenses. Prior to attending, the franchisee may purchase the online training course for salespersons. The online training course fee is $295. If this fee is paid, the training fee to attend the five day training program does not need to be paid. Although it is not required, the franchisee may attend a refresher-training program or send representatives to be trained at any time in the future.

Territory: The franchisee is granted exclusive territory to operate a Transworld agency within a Designated Marketing Area.

Term of Agreement and Renewal: The length of the initial term is 35years from the effective date of the franchise agreement. If the franchisee meets the conditions, they may renew their business for an additional 35-year term.

Obligations and Restrictions: If the franchisee is an individual, they must directly perform or supervise the operation of the business unless otherwise agreed. Direct, on-site supervision may be performed an individual who has successfully completed the training program. The franchisor requires the franchisee to offer and sell only approved services and goods.

Estimated Number of Units: 193

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $44,500 $44,500
Travel and Living Expenses while in Training School $105 $300
Advertising Fund, Initial Membership Fee $500 $500
Premises Lease $900 $7,200
Initial Advertising $3,000 $6,000
Software and Supplies Package $9,877 $9,877
Equipment and Office Software $0 $1,500
Insurance $750 $2,000
Additional Funds - 3 months $5,000 $15,000
ESTIMATED TOTAL $64,632 $86,877
Other Fees
Type of Fee Amount
Royalty A monthly fee equal to the greater of 8% of Gross Revenues or $300 – months 4-12;
$500 –months 13-24;
$750 –after 24 months.
Marketing Fee $150 per month.
Transfer Fee $24,000 for transfer of each Designated Marketing Area, or the then current transfer fee.
Renewal Fee $1,500
Agent Fee $150 per month for the first agent and $75 per month for each additional agent.
Salesperson Training Fee $295
Franchise Resale Program Fee 10% referral fee of commission on sale of franchise business.
Audit-Inspection Costs Cost of audit-inspection, including travel, hotel, meals, salaries or fees.

The above information has been taken from the FDD of Transworld Business Advisors. Year of FDD: 2016

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