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AmeriCop Franchise Costs & Fees

Date of Incorporation: 2012
Franchising Since: 2012
Headquarters: Katy, Texas

Business Description: The franchisor is AmeriCop Franchising, Inc. The franchise is for a business that provides to private and public sector businesses, institutions and organizations off-duty police and law enforcement officers who provide armed and unarmed security services for standard, everyday, special event and emergency security services.

Franchise Offer: The franchise gives franchisees the right to operate a business that provides to private and public sector businesses, institutions and organizations off-duty police and law enforcement officers who provide armed security services and security guards who provide unarmed security services for standard, everyday, special event and emergency security services in a designated geographic area.

Financial Assistance: Franchisees must participate in the Payroll Funding and Carry Program that the franchisor establishes and which may be conducted by the franchisor, its affiliate, or a third party that it designates. Under the Payroll Funding and Carry Program, the paychecks that the franchisor issues under the Payroll Processing and Billing Program for the franchisee’s Security Personnel will be drawn on the franchisor’s funds in its bank account. Franchisees will not be charged interest on the Security Personnel Wages, but they must pay to the franchisor or its affiliate a monthly Payroll Funding and Carry Program fee of 1.5% of Security Personnel Wages for these services, in addition to their obligation to reimburse the franchisor in full for the Security Personnel Wages./p>

Training and Assistance: Before franchisees open for business, their Operating Principal, all persons who will directly manage the AmeriCop Business, and any of their Owners whom the franchisor requires must have attended and satisfactorily completed its initial orientation and training programs. The franchisor will advise franchisees of which people must attend initial training before they sign the Franchise Agreement. Currently, training is conducted in Katy, Texas. Initial training generally requires approximately 2 weeks. The franchisor may require franchisees, their Operating Principal, or their personnel to periodically attend additional training programs and seminars, which will be conducted in Katy, Texas or such other location it designates.

Territory: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. If franchisees are in compliance with the Franchise Agreement and all other agreements between franchisees or their Affiliates and the franchisor or its Affiliates, and except as described below, during the term of the Franchise Agreement, the franchisor and its Affiliates will not establish or authorize anyone except franchisees to establish an AmeriCop Business in the Territory.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional consecutive successor terms of 5 years each are available, if requirements are met.

Obligations and Restrictions: Unless the franchisor otherwise approves in writing, the Operating Principal must personally supervise the day-to-day operations of the AmeriCop Business and devote his or her personal, full-time attention and best efforts to the management and operation of the AmeriCop Business. The Operating Principal need not be an Owner but must be approved by the franchisor. The franchisor requires Owners and their spouses to sign a Guaranty, guaranteeing their performance under the Franchise Agreement and binding themselves individually to certain provisions of the Franchise Agreement, like the covenants against competition and those restricting disclosure of confidential information, restrictions on transfer, and dispute resolution procedures. Franchisees must offer and sell all of the AmeriCop Services that the franchisor requires and only the services which it authorizes for the System. Franchisees will not offer to sell or provide through the AmeriCop Business any products or services that have not been approved by the franchisor in writing, franchisees must discontinue any services or products that the franchisor disapproves.

Estimated Number of Units: Less than 10

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $30,000 $30,000
Furniture, Fixtures & Equipment $0 $1,000
Computer Software & Hardware $1,500 $3,000
Office Supplies, Printing & Stationary $500 $1,000
Insurance Deposit and Pre-payment $1,000 $3,500
Initial Training Expenses $1,500 $3,000
Market Introduction and Sales Process Implementation $3,000 $5,000
Professional Fees $1,000 $1,500
Licenses and Permits $500 $750
Additional Funds (first 3 months) $5,000 $10,000
ESTIMATED TOTAL $44,000 $58,750
Other Fees
Type of Fee Amount
Royalty 9% of Gross Sales.
Brand Fund Contribution Up to 1% of Gross Sales.
Payroll Funding and Carry Program Fee 1.5% of the wages due to each of the personnel that franchisees engage to provide the AmeriCop Services.
Reimbursement of Security Personnel Wages Varies.
Local Advertising 1% of Gross Sales.
Additional Training At the franchisor’s option, a reasonable fee to cover the cost of training materials.
Replacement Training Fee $5,000
Remedial Training At the franchisor’s option, a reasonable fee based on its rate of $550 per day plus our trainers’ expenses.
Transfer Fee $10,000 or such greater amount as is necessary to reimburse the franchisor for its costs and expenses (including attorney’s fees).
Securities Offering Fee The franchisor’s reasonable costs to review the proposed offering.
Successor Term Fee 25% of the then-current initial franchise fee.
Supplier Approval Fee The franchisor’s reasonable expenses.
Re-inspection Fee Cost of re-inspection.
Audit Fee Cost of audit.
Insurance Fee A reasonable amount based on the franchisor’s expenses.
Interest 1.5% per month or the maximum lawful rate (10% is the maximum lawful rate in California).
Tax Adjustment The amount of the tax.
Indemnification Varies.
Enforcement Costs The franchisor’s cost to enforce the Franchise Agreement, including legal and court costs and reasonable attorneys’ fees.

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

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