Furniture Medic
Date of Incorporation: 1992
Franchising Since: 1992
Address: Memphis, Tennessee
Country:U.S.
Description: The franchisor operates a furniture, fixtures, wood restoration, repair, re-facing and refinishing business. These services are marketed to hotels, homeowners, moving companies, antique dealers, furniture rental companies, insurance companies and others whose responsibilities include residential and commercial property management and maintenance.
Franchise Offer: The franchisor offers a furniture restoration, re-facing, repair and refinishing franchise service business. Each franchised business includes the right to the use the name, service marks and business methods in a non ¬exclusive Territory. The franchisee is encouraged to use their home as a base of operation for the Franchise business until a level of business will support an outside office and warehouse space. As the owner of the Franchise business, they will operate one (or more) service vehicles, in addition to a fixed location furniture restoration service, that displays Furniture Medic's logo and phone number.
Financial Assistance: The franchisor does not offer direct financing. Its affiliate, SMAC, does offer financing for the initial franchise fee and the Opening Equipment Package, including shipping, handling and sales tax charges that you pay to Furniture Medic for your franchise. Furniture Medic does not receive payment for the placement of your financing with SMAC nor does Furniture Medic arrange financing from sources other than SMAC. The franchisee may choose another lender or finance company.
Training and Assistance: Training is conducted in a classroom environment, in a "hands-on" laboratory environment in Furniture Medic’s Training Center in Memphis, Tennessee. Each technical subject includes hands-on guided application and practice time. Training, marketing, and operation manuals are provided as instructional material.
Territory: The franchisee will not receive an exclusive territory. The non-exclusive area corresponds to one or more counties, parishes or other similar designations and must contain at least 100,000 people unless mutually agreed upon between the parties. The franchisee may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands.
Term of Agreement and Renewal: Initial franchise term is five years, with an option to renew for an additional five-year term if the franchisee is in full compliance with the franchise agreement.
Obligations and Restrictions: Furniture Medic does not require that the franchisee personally supervise the franchise business. If the franchisee does not personally supervise the business, they must employ a manager who will be responsible for direct, on-premises supervision of the business. The manager must have successfully completed the Furniture Medic training program.
Total Number of Units: Approximately 500 locations.
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $24,500 | $24,500 |
| Training related expenses | $1,065 | $3,125 |
| Opening package | $12,500 plus sale tax, shipping and handling | $12,500 plus sale tax, shipping and handling |
| Insurance Liability/Vehicle | $2,500/yr | $4,500/yr |
| Computer Software | Fees for first year of operation is included in Initial Franchise Fee | Fees for first year of operation is included in Initial Franchise Fee |
| Internet Connection | $45 | $150 |
| Fax Machine | $200 | $200 |
| Miscellaneous Opening Costs | $200 | $1,500 |
| Service Vehicle | $2,000 depending on model | $25,000 |
| Van detail package | $260 plus shipping and handling | $644 plus shipping and handling |
| Real estate and Improvements | N/A | N/A |
| Advertising Fund Contribution - 3 months | $150 | $150 |
| Additional Startup Funds - 3 months | $2,000 | $6,000 |
| Initial marketing | $100 | $3,000 |
| Total | $45,520 | $81,269 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | The larger of $250 per month or 7% Gross Sales |
| National Advertising Fund | The greater of $50.00 per month or 1% of Gross Sales. Should the minimum monthly fee be the larger of the two fee amounts during the first 90 days after completion of training, Franchisee pays a fee based only on actual Gross Sales. 1% of National Accounts Sales. |
| Reporting and Accounting Audit Expenses | Cost of audit, including travel, lodging and wage expense, reasonable legal and accounting costs plus interest of 1/2% per month on back fees. |
| Late Fee | $50.00 due per delinquent report plus interest on fees or other payments past due First 2 weeks of Training, $750 (Supplies Fee) . Third Week of Training, $1,300. |
| Additional Training Fee |
For each additional person to attend: First 2 weeks of Training, $750 (Supplies Fee) Third Week of Training, $1,300 Optional Training, $50-$1,000
|
| Ownership Transfer Fee | $10,950 which includes three-week Academy training and $1,000 Convention Attendance Fee for one person. Transfer to owner's adult child who is at least 18 years of age: One-half of normal fee Transfer to spouse of franchise owner: No fee |
| Software System Fee | $30.00 per month after first year if this is the purchase of new license. |
Date of FDD: 2010
The above information has been compiled from the FDD of Furniture Medic along with online sources.
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Honey Do Services, Inc.
Honey Do franchisees are winners. Be a winner with the leader in the booming handyman industry!
Minimum Cash Required: $40,000.
Fresh Coat
Fresh Coat is a low-cost, home-based, recession-resistant business opportunity with multiple revenue opportunities!
Minimum Cash Required: $40,850.
Your Request List