Furniture Medic Franchise Cost & Fees
Date of Incorporation: 1992
Franchising Since: 1992
Headquarters: Memphis, Tennessee
Business Description: Furniture Medic, the franchisor, sells a furniture and wood restoration, repair and refinishing franchise service business (the franchised 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 franchisee will sign a Franchise Agreement which gives him/her the right to use the franchisor’s name, service marks and business methods in a nonexclusive Territory.
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 franchisees pay to Furniture Medic for their franchise. Furniture Medic does not receive payment for the placement of financing with SMAC nor does Furniture Medic arrange financing from sources other than SMAC. The franchisee may choose another lender or finance company. If franchisees are interested in obtaining a loan guaranteed through the United States Small Business Administration, Furniture Medic is listed on their Franchise Registry which provides expedited loan processing for franchise businesses.
Training and Assistance: Furniture Medic provides training for one person and will train others the franchisee needs to have trained on a “space-available” basis. The cost of this training for one person is included in the initial franchise fee. Training will consist of a Pre-Academy Program that can be completed in as little as 50 hours coupled with a two-week session at the FM Training Center in Memphis, Tennessee. Then 90 to 120 days after successfully completing this Academy, the franchisee will return for one week of additional training. The franchisor will make available further training for the Franchised Products and Services it introduces.
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:The initial franchise term is five years. The franchisee may renew the agreement at no additional cost for an additional consecutive five-year term provided requirements have been met.
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, he/she 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. The franchisee cannot sell or provide any services other than those authorized by Furniture Medic which the franchisee is trained to provide.
Estimated Number of Units: 345
|Name of Fee||Low||High|
|Initial Franchise Fee||$29,900||$29,900|
|Training Related Expenses||$1,110||$4,170|
|Sales tax, shipping and handling of Opening Package (estimated cost, depending on your location)||$2,000||$2,000|
|Insurance: General Liability and Vehicle (per year)||$2,500||$4,500|
|Insurance: Workers' Compensation Insurance||$700||$2,000|
|Miscellaneous Opening Costs||$200||$1,500|
|Service Vehicle (depending on model)||$2,000||$4,000|
|Van Detail Package||$150||$462|
|Van Detail Package shipping and handling Installation in Memphis||$150||$200|
|Real Estate and Improvements||N/A||N/A|
|Advertising Fund Contribution - 3 months||$450||$450|
|Additional Start-up Funds - 3 months||$2,000||$6,000|
|Type of Fee||Amount|
|Royalty Fee||The larger of $250 per month or: 7% Gross Sales.|
|National Advertising Fund||The greater of $100 per month or 2% 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. 2% 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 1.5% per month on back fees.|
|Late Fee||$50 due per delinquent report plus interest on fees or other payments past due.|
|Additional Training Fee||For each additional person to attend:
First 2 weeks of Training, $750 or $375 per week, per person attending;
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.
|Other Agreement Changes||Add/Delete/Change $400 Owner Name (other than spouse of franchise owner); Business Entity Name; Business structure (after first year of term of initial agreement) $200 Business d/b/a Name.|
|Remote Data Back-up||$34 per month.|
|Renewal Fee||$2,000 per agreement. If more than one agreement is renewed at the same time, the renewal fee per agreement is $1,500|
|Kickserv Software||$26 per month.
$200 start-up fee if the franchisee does not already have this software.
|Extimating and Pricing Software Fee||Base License: From $440 to $480 depending on additional license packs you require.
Upload fee: $5 to $30 fee per upload based on invoice value.
|Corrigo Software||Subscription is $30 per month or $5 per order; $2-$7 ordering fee.|
|Go Formz Inspection Software||$25 per month.|
|QFR PROGRAM FRANCHISEES ONLY|
|QFR Job Lead Fee||$42 per job lead through 1-800-RESPOND.|
|QFR re-instatement Fee||$100|
The above information has been taken from the FDD of Future Medic. Year of FDD: 2015
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