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Fibrenew Franchise Costs & Fees

Date of Incorporation: 1985
Franchising Since: 1987
Headquarters: Black Diamond, Alberta
Country of origin: Canada

Business Description: Fibrenew USA, Ltd. is the franchisor, and the parent company is Fibrenew International, Ltd. Fibrenew franchisees operate a mobile service, which repairs, re-dyes, cleans and restores leathers, vinyls, velours, fabrics, plastics, and carpeting.

Franchise Offer: The business franchisees will operate under the Franchise Agreement is a mobile service that repairs, cleans, re-dyes and restores leathers, vinyls, velours, and plastics under the franchisor’s trademarks, service marks, trade dress, color schemes and logos and using its distinctive programs, procedures, protocols, standards, manuals and other confidential business systems, practices and materials.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ obligations to third parties. Franchisees are eligible for expedited and streamlined Small Business Administration loan processing through the SBA’s Franchise Registry Program.

Training and Assistance: Franchisees, their Designated Manager, or, if franchisees are a partnership, corporation, or limited liability company, one of their principals must complete the training program successfully to the franchisor’s satisfaction before beginning operation of their Fibrenew service. The training program consists of 69 hours of classroom training at the franchisor’s facility in Calgary, Alberta. The franchisor offers annual seminars; attendance at a minimum of 1 seminar per calendar year will be mandatory unless the franchisor waives the requirement.

Territory: Each Fibrenew franchisee is granted an exclusive territory, but no specific location is designated for the premises of the franchised business. The Fibrenew service must be based within the exclusive territory. Generally, the exclusive territory covered by each Franchise Agreement will include either: approximately 150,000 people in a low-density area or approximately 300,000 people in a high-density area, within or adjoining a metropolitan area with a population of at least 300,000. If franchisees request a larger exclusive territory, the franchisor may grant a larger exclusive territory to franchisees, at its discretion, upon the payment of an extra fee. The franchisor and its affiliates will not operate another similar or competitive Service within the exclusive territory, authorize another franchisee or licensee using its marks or other marks to operate a similar or competitive service in the exclusive territory, nor sell products to another service provider in the exclusive territory (including through other channels of distribution, such as the Internet, catalog sales, telemarketing or other direct marketing sales), except franchisees’ exclusivity is subject to the franchisor’s Preferred Vendor Account policies.

Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If franchisees are in good standing, they may renew for consecutive 7-year terms.

Obligations and Restrictions: The franchisor does not require that franchisees participate personally in the direct operation of the franchised business, or that their service be supervised by franchisees or by someone with an equity interest in the business. However, the franchisor does require that franchisees attend and participate in the initial training. If franchisees do not personally participate in the direct operation of the Franchised Business on a full-time basis, then they must have a Designated Manager who will devote all his or her productive time and effort to the management and operation of the service on a full-time basis.

Estimated Number of Units: 230

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $46,000 $92,000
Start-up Fee $29,000 $29,000
Insurance - 1 year $700 $2,000
Organizational Expenses $200 $2,000
Training/Travel Expenses $5,000 $5,800
Shipping & Brokerage Cost or Start-Up Kit $600 $1,000
Office Equipment $0 $1,000
Work Vehicle with Fuel – 6 months $2,400 $5,100
Vehicle Signs $2,000 $3,500
Internet and Wireless Access – 6 months $300 $600
Business Licenses/Permits $50 $200
Office or Storage Area Unable to Estimate
Internet Marketing – 6 months $1,200 $1,800
Additional Funds - 6 months $2,400 $4,800
ESTIMATED TOTAL $89,850 $147,800
Other Fees
Type of Fee Amount
Technical Assistance Fee $575 per month.
Google App Fee Then-current fee (currently $7.99 per month).
Payment for Proprietary Products Minimum of $3,000
Fee for Initial Training for Additional People Then-current fee (currently $7,000)
Update Training Fees Generally $500 to $2,000 per trainee per seminar.
Renewal Processing Fee $500
Change, Release/Cease Operations Fee $500
Resale Cost Then-current resale fee (currently $29,000)
Interest on Late Payments 18% a year or highest rate allowed by law.
NSF Fee $45 per occurrence.
Other Taxes Amount assessed against the franchisor by federal, state and local tax authorities on any payments franchisees make to the franchisor.
Inspection Cost Recovery Cost of inspection, plus related expenses.
Indemnification Will vary under circumstances.
Dispute Resolution Costs Will vary under circumstances.
Expenses of Analyzing Request for Additional Item, Service or Supplier The franchisor’s reasonable expenses it incurs in its analysis.

The above information has been taken from the FDD of Fibrenew. Year of FDD: 2015

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