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House Doctors Franchise Costs & Fees

Date of Incorporation: 1994
Franchising Since: 1997
Headquarters: Milford, Ohio

Business Description: The franchisor is Saltire Brands LLC. A House Doctors franchise sells residential and commercial property maintenance, repair, and remodeling services.

Franchise Offer: The franchisor offers franchises to operate a business under the trade name House Doctors (or House Medic in certain markets) in a specified territory.

Financial Assistance: In some cases, the franchisor will provide interim financing for payment of the initial franchise fee for a franchisee that has applied for or is getting long-term financing from a bank (usually in the form of an SBA loan) or a retirement plan. Except as described the franchisor does not offer direct or indirect financing. The franchisor does not guarantee any notes, leases or obligations.

Training and Assistance: The franchisor will provide 5 days of training for up to 2 people at its corporate headquarters in Milford, Ohio. Either the franchisee or the person designated by franchisee as responsible for the general oversight and management of the franchised business, must complete the initial training program to the franchisor’s satisfaction within 6 months after the franchise agreement is signed. Although not required to do so by the franchise agreement, the franchisor plans to hold an annual convention for House Doctors franchisees, typically in January, February or March, to discuss sales techniques, operation procedures, and marketing methods, and to introduce new software, marketing programs, and promotional items.

Territory: The franchisor will grant franchisees a protected territory delineated by ZIP Codes. The franchise territory will be a single, undivided geographic area, containing approximately 60,000 qualified households. Franchisees may not provide products or services at a job site located in another franchisee’s territory. So long as franchisees are not in breach of the franchise agreement or other agreement with the franchisor, it will not operate or establish or authorize another to operate or establish another House Doctors franchise in the protected territory.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. There is no right to renew the franchise, but, if franchisees meet certain requirements, the franchisor will sell them a successor franchisor for another 10-year term for 25% of the then-current initial license fee.

Obligations and Restrictions: At all times franchisees or a designated manager shall devote his or her full time, energy, and best efforts to the management and operation of the franchised business. The franchised business must at all times be under the direct supervision of you or designated manager. The manager must be approved by the franchisor and must have successfully completed our training program. Franchisees may use no other names for the franchised business without the franchisor’s approval. Franchisees may not use the premises on which the franchised business is located for any purpose other than the operation of a House Doctors franchise and the sale of authorized products and services without the franchisor’s approval (this restriction does not apply if franchisees operate the franchised business from their home). Franchisees may offer and sell only those goods and services that the franchisor has approved in writing.

Estimated Number of Units: 35

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $19,900 $19,900
Territory Fee (per territory) $39,000 $39,000
Computer Equipment $2,000 $4,000
Service Vehicles $2,000 $4,000
Tools and Equipment $400 $1,000
Furniture and Office Equipment $0 $1,000
Initial Telephone, Bank and Other Deposits $500 $1,000
Travel & Living Expenses While Training $0 $2,000
Real Estate and Improvements Varies
Insurance $1,500 $3,000
Permits & Licenses $100 $1,000
Bookkeeping Services (3 months) $600 $750
Additional Funds (3 months) $32,000 $52,000
ESTIMATED TOTAL (Does not include real estate costs) $98,000 $128,650
Other Fees
Type of Fee Amount
Royalty Fee 6% of labor Gross Sales and 4% of materials or product Gross Sales.
Minimum Quarterly Royalty The Minimum Quarterly Royalty for one Territory is:
Year 1 - $3,000
Year 2 - $5,000
Year 3 and thereafter - $6,500
Maximum Quarterly Royalty The Maximum Quarterly Royalty for one Territory is $13,750
Advertising Contribution 2% of Gross Sales.
Minimum Quarterly Advertising Contribution Year 1 - $1,000
Year 2 - $1,500
Year 3 and thereafter - $2,000
Maximum Quarterly Advertising Contribution The Maximum Quarterly Advertising Contribution for one Territory is $5,000
Local Advertising $10,000 per calendar quarter.
Cooperative Advertising Variable.
Broker Commission Variable.
Transfer Fee Currently $19,900 (it will be the then-current License Fee at the time of the transfer); $4,975 if franchisees transfer to another House Doctors franchisee. In addition, franchisees will be required to pay or reimburse actual legal expenses in regard to the Transfer.
Successor License Fee Currently $4,975 (it will be 25% of the then-current Initial License Fee).
Convention Fee Currently $899 per attendee, but may vary from one convention to another.
Late Fee $20 for late payments; $25 for late reports.
Interest 18%
Audit Fee Cost of audit plus 18% interest on underpayment.
Sales/Use Taxes Variable.
Reimbursement Amount of expense advanced plus 18% interest.
Legal Expenses Amount of expense advanced plus 18% interest.
Indemnification Amount of expense advanced plus 18% interest.

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

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