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Archadeck Franchise Costs & Fees

Date of Incorporation: 1980
Franchising Since: 1984
Headquarters: Richmond, Virginia

Business Description: Archadeck Franchising Corporation is the franchisor. The Construction Sales and Service Business (the Archadeck franchise) is a contracting service business, which includes the marketing, selling, designing, repairing, remodeling, enhancing, constructing, installing, and maintaining of recreational, residential and commercial products and services, including, decks, screened porches, gazebos, sun rooms, room additions, garages, ramps, docks, trellises, bridges, arbors, landscape pavers, stone and paver patios and other hardscaping, and accessories like children’s play sets, awnings, benches, planters, privacy fences, deck lighting, swing supports, light landscaping design and planting services, and other remodeling, repairing, and altering services that enhance and complement the business.

Franchise Offer: The franchise offered is for the operation of an Archadeck business, which offers certain construction sales and services of outdoor living spaces and environments.

Financial Assistance: The franchisor makes optional financing available to qualifying franchisees. If franchisees meet the qualifications, the franchisor may finance up to 100% of the franchise fee for up to 60 months, provided franchisees sign the Promissory Note at the time they sign the Franchise Agreement. Other than as described, the franchisor does not offer direct or indirect financing and it does not guarantee a franchisee’s note, lease or obligation. The franchisor reserves the right to terminate its financing program at any time, offer different terms or assist franchisees in obtaining financing in the future.

Training and Assistance: Franchisees and any person designated by franchisees to manage the business must attend and successfully complete the mandatory training program before opening the business. The training program is conducted at a location the franchisor specifies and involves up to 15 days of training as determined in its sole judgment. Within the first year of the Business being in operation and at a time scheduled by the franchisor, it will provide additional assistance and training to franchisees at the Business location for up to 5 days at its sole discretion. The focus of the assistance is to implement those items covered during the initial training program. The franchisor may also furnish reasonable additional training at its office, as it requires or franchisee’s request, at reasonable intervals of time.

Territory: Franchisees will be granted an exclusive territory in which to conduct the Construction Sales and Service Business that they are authorized to operate under the Franchise Agreement. The territory is based on demographics and other characteristics including population density, average income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. For a Standard Territory, the franchisor will use commercially reasonable efforts to grant only one license to a franchisee per 30,000 to 40,000 qualified households, as determined in its sole discretion, (or incremental portion thereof) in the designated geographical location and it will consider granting a Micro Market Territory for areas that fall below the 30,000 qualified household levels.

Term of Agreement and Renewal: The length of the initial franchise term is 8 years. A renewal term equal to the then current initial term (but not less than 5 years) is available, if requirements are met.

Obligations and Restrictions: The franchisor strongly recommends, but do not require, that franchisees personally devote their full time and efforts to, or personally participate full time in the operation of, the business. If franchisees do not personally devote their full time to the Business, then there are requirements and conditions imposed by the franchisor regarding the employment of a manager or agent to supervise and operate the business on a day-to-day basis. Franchisees may not offer goods or perform or render services outside the scope of the definition of “Construction Sales and Service” under the Archadeck name and mark without the franchisor’s prior written approval.

Estimated Number of Units: 60

Investment Tables:
Initial Investment for a Standard Territory
Name of Fee Low High
Initial Franchise Fee $4,950 $49,500
Guarantee Fund Initial Payment $3,000 $3,000
Tools and Equipment $1,000 $2,500
Travel and Living Expenses While Training $2,500 $4,500
Computer Hardware and Software $3,900 $4,800
Start-up Advertising for First 3 Months $7,500 $15,000
Start-up Expenses and Working Capital for First 3 Months $6,550 $22,250
ESTIMATED TOTAL $29,400 $101,550
Initial Investment for a Micro Market Territory
Name of Fee Low High
Initial Franchise Fee $2,450 $24,500
Guarantee Fund Initial Payment $3,000 $3,000
Tools and Equipment $1,000 $2,500
Travel and Living Expenses While Training $2,500 $4,500
Computer Hardware and Software $3,900 $4,800
Start-up Advertising for First 3 Months $5,000 $10,000
Start-up Expenses and Working Capital for First 3 Months $6,550 $22,250
ESTIMATED TOTAL $24,400 $71,550
Other Fees
Type of Fee Amount
Branding Royalty – Standard Territory For each Standard Territory each calendar year, 5.5% of Gross Receipts up to $500,000, 4.5% of Gross Receipts between $500,000 and $1,000,000, 3.5% of Gross Receipts between $1,000,000 and $2,000,000, 3% of Gross Receipts between $2,000,000 and $4,000,000, and 2.5% of Gross Receipts greater than $4,000,000, with a required annual minimum and other requirements.
Branding Royalty – Micro Market Territory For each Micro Market Territory, a fixed monthly Branding Royalty of $700 per month in the first year of operation; $900 per month in the second year of operation; and $1,100 per month in the third year of operation and for the balance of the term of the Franchise Agreement.
Marketing Royalty 1% of Gross Receipts up to a cap of $20,000 in each calendar year, with a required annual minimum of $2,500 after your first full calendar year.
Local Marketing At least $30,000 for a Standard Territory and at least $20,000 for a Micro Market Territory.
Transfer $45 per month per lineGreater of $5,000 or 3% of the total sales price, plus fee for the franchisor to train transferee which is $10,000 (or the then current charge for training) plus start-up materials of $4,000 (or the then current charge for start-up materials)
Drafting Fee Varies depending upon service.
Guarantee Fund – Initial Payment $3,000
Guarantee Fund – Ongoing Payment 0.50% of Gross Receipts in initial year of operation and 0.25% in subsequent years with maximum cap.
Technology Fee Currently $100 per month (maximum fee of $150 per month).
Computer Hardware and Software Maintenance, Upgrades and Replacement $0 to $2,000 per year.
Late Charge 5% of past due amounts plus interest at lesser of 1.5% per month or highest legal rate.
Costs and Attorneys’ Fees Varies depending on the circumstances.
Consultation Generally no charge, but a fee of up to $300 per day plus expenses may be charged in the future.
Seminars, Meetings and Additional Training Varies, if a fee is even charged.
Audit Cost of audit or inspection.
Indemnification Varies based on circumstances.
Special Assessments Varies based on participating franchisee approval.
Renewal Fee 10% of the then current Franchise Fee for the applicable territory (Micro Market or Standard Territory).
Late Report Fee $100 per late report.

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

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