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WSI Internet Franchise Cost & Fees

Date of Incorporation: 1996
Franchising Since: 1996
U.S. Headquarters: Lewes, Delaware
Country of Origin: Canada

Business Description: National Internet Corporation is the franchisor. The parent company is World Technology Group Inc. WSI Businesses provide business and individuals with advanced full-service digital marketing solutions that allow businesses to respond successfully to the constantly increasing demands of the marketplace and capitalize on technological changes that are forever becoming part of society.

Franchise Offer: The franchise is for WSI Businesses which provide full service digital marketing systems to businesses under the trademark “WSI” and other authorized marks. The franchisor offers three types of licenses: the Local Territory License, the Regional Territory License and the National Territory License.

Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.

Training and Assistance: A maximum of two owners per franchise will be trained under the Initial Training Program at no additional charge. There are two courses. Course one is WSI Digital Marketing Foundations. It is a pre-requisite course to attend the in-house WSI Certified Digital Marketing training week. The curriculum is self-study and the franchisee will have access to franchise business support to assist when and if needed. Course two is the WSI Certified Digital Marketing Professional Training. It is a mandatory in-class training that focuses on deepening the franchisee’s understanding and operation of the WSI franchise system. It is a seven-day course (8 hours per day). Franchisees must complete this course to the franchisor’s satisfaction.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls. The Local Territory License allows franchisees to offer and sell to customers located in a Local Territory (defined as the city boundaries or other territorial boundaries designed to approximate, as closely as possible, a population base of approximately 100,000 individuals. The Regional Territory License allows franchisees to offer and sell to customers located in two or more contiguous Local Territories or a state. The National Territory License allows franchisees to offer and sell to customers located in the United States of America.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years with an option to renew for one additional 10-year term, if in good standing.

Obligations and Restrictions: Unless otherwise approved in writing, the franchisor requires that one of the owners whom it approves personally participate in the direct operation of the Franchised Business. The franchisee must agree to maintain an active business operation according to the terms of the Franchise Agreement and to conduct the business in conformity with all accepted community standards of ethical business conduct. The Franchise Agreement provides that franchisees must offer only the products and services which the franchisor authorizes in its System, as they may be updated periodically. In order to maintain rights in the franchise, franchisees must meet a minimum sales volume.

Estimated Number of Units: 955

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $49,700 $69,700
Travel And Related Expenses During Training $1,500 $3,000
Computer & Related Equipment $1,000 $4,000
Office Supplies & Misc. $100 $300
Permits & Licenses $500 $500
Telephone (Installation) $100 $200
Internet (Installation) $50 $50
Marketing and Lead Generation $9,000 $12,000
Legal & Accounting $500 $1,000
Insurance $400 $600
Additional Funds – 3 Months $1,500 $3,000
Total Estimated Initial Investment (excluding real estate) $64,350 $94,350
Other Fees
Type of Fee Amount
Management Services Fee 10% of Gross Revenues, but at least $300 per month during the first 24 months of Management Service Fee payments, thereafter increased to $500 per month.
Fees for Website Development, Hosting and Other Web Services Amount invoiced for website services purchased.
"The Agency" License Fee $38,000
Enterprise system access fee for staff $99 per month for access by franchisee.
International Branding Fee $100 per month.
Education Payment Plan $60 per person per month.
Interest/Late Fee 1.5 times the Prime Rate then being charged by Chase Manhattan Bank.
Reactivation Fee Varies, based on the franchisor’s costs.
Transfer Fee $11,000
Relocation Fee $500
Audit Fee Cost of audit plus interest on the underpayment at the Default Rate.
Additional Training Expenses $1,500 per person per day for initial training.
Translator Fee $2,500
Material or Product Translation This will vary depending on the material or product.
Indemnification An amount equal to the value of all losses and expenses incurred by franchisor.
Renewal Fee $2,000
Attorney's Demand Letter $150

The above information has been taken from the FDD of WSI Internet. Year of FDD: 2016

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