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Renew Crew Franchise Costs & Fees

Date of Incorporation: 1993
Franchising Since: 2001
Headquarters: Richmond, Virginia

Business Description: The franchisor is Renew Crew Franchising Corporation. Renew Crew businesses offer certain cleaning, restoration and protection services for a wide variety of exterior surfaces in both residential and commercial markets.

Franchise Offer: The franchisor offers franchises for the operation of Exterior Cleaning and Protection Businesses under the “Renew Crew” service mark, and other trademarks, trade names, service marks and logos it periodically designates. An Exterior Cleaning and Protection Business offers a full offering of cleaning, restoration and protection services for exterior surfaces, made from a wide variety of natural and manufactured materials, including decking, siding, walkways, patios, hardscapes, driveways, windows, roofing and gutters.

Financial Assistance: The franchisor makes optional financing available to qualifying franchisees. If franchisees meet its qualifications, the franchisor may finance up to 100% of the Initial Franchise Fee for up to 36 months, provided you sign a Promissory Note at the time they sign the Franchise Agreement. Other than as described, the franchisor does not offer direct or indirect financing, does not guarantee franchisees’ loans, lease or other obligations, and do not receive payments or other consideration for the placement of financing. 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 must attend and successfully complete the training program to the franchisor’s satisfaction. The initial training program lasts generally between 5 to 6 business days, depending on the size of the training class. The initial training program is divided into two phases. Phase I of the initial training program is usually conducted at the franchisor’s office located in Richmond, Virginia. Phase I of the initial training program is conducted as necessary, but is generally held approximately 6 times per year. Franchisees or, if they are not an individual, a “Designated Business Manager” must attend and successfully complete to the franchisor’s satisfaction Phase I of our initial training program. Phase II of the initial training program will be conducted in the field and at a location the franchisor designates, and is held approximately 2 times per year. The franchisor may present seminars, conventions or continuing development programs for the benefit of franchisees. At this time, attendance is voluntary, but is strongly recommended and considered a necessity.

Territory: Franchisees will be granted a Territory in which to operate the Exterior Cleaning and Protection Business under the Franchise Agreement. The Territory is based on demographics and other characteristics including population density, home values, 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 400,000 people (or incremental portion thereof) in the designated geographical location (Population Limit) and the franchisor will consider granting a Micro Market Territory for areas that fall below the Population Limit.

Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If franchisees wish to do so, and they satisfy all of the pre-conditions to obtaining a Successor Franchise, the franchisor will offer the right to obtain an additional term of for a period of time equal to the then-current initial term (but no less than 5 years).

Obligations and Restrictions: If franchisees are an individual, they must directly supervise the Exterior Cleaning and Protection Business at their franchised location. If franchisees are a business entity, the direct, on-site supervision must be done by a Designated Business Manager, which could be one of their employees. The Designated Business Manager is not required to own a beneficial interest in the business entity. Franchisees must refrain from using or permitting the use of their Exterior Cleaning and Protection Business for any other purpose or activity except as defined by the franchisor at any time without first obtaining its written consent. Franchisees must sell or offer for sale only those Services and Products which are authorized by the franchisor and which meets its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques.

Estimated Number of Units: 35

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $0 $20,000
Travel and Living Expenses while Training $2,000 $3,000
Tools and Equipment $6,500 $9,000
Computer Hardware and Software $800 $2,000
Inventory $1,000 $2,000
Trade Show Booth $2,500 $2,500
Storage Facility for Inventory and Equipment $0 $375
Vehicle $0 $2,250
Vehicle Signage and Outfitting $5,000 $5,000
Initial Marketing Expenses $10,000 $15,000
Additional Funds – 3 months $7,500 $10,000
ESTIMATED TOTAL $35,300 $71,125
Other Fees
Type of Fee Amount
Monthly Branding Royalty The greater of: (a) 6% of Gross Revenues or (b) the “Minimum Branding Royalty” of $1,000 per month (or $700 per month for Micro Market Territories).
Individual Local Advertising Investment $30,000 per year.
National Branding Marketing Fee 1.5% of Gross Revenues.
Transfer Fee $5,000
Audit Cost of audit plus late fee of 1.5% interest per month on understatement.
Fee for Lost Manuals $300
Successor Franchise Fee $2,500 or 10% of the then existing initial franchise fee, whichever is greater.
Insurance At a minimum, comprehensive general liability coverage and products liability.
Indemnification Will vary under circumstances.
Cost of Enforcement or Defense All costs including accounting and attorneys' fees.
Interest Lesser of 1.5% per month or highest rate of interest allowed by law.
Late Report $100 per violation.
Technology Maintenance Expense The then-current cost of purchasing required hardware and software upgrades. The estimated range of costs are $0-$5,000
Seminars, Conventions or Programs Franchisees must pay their expenses, conference fees, if any, as well as the expenses their Designated Business Manager and employees incur in attending these meetings. The estimated range of costs is $500-$2,500 plus materials estimated at $50
Software License and Support Fee The then-current monthly software fee ranging between $100 - $150 per month; currently $100 per month.
Fees to Evaluate an Alternative Supplier Currently, we do not charge any fees to evaluate an alternative supplier.
Fees for Special Assistance Amounts we or another Renew Crew franchisee incurs to assist franchisees in completing a job that they are unable or unwilling to complete.
Development Schedule Extension Fee $5,000 per Exterior Cleaning and Protection Business for an extension of up to 6 months.
Development Agreement Transfer Fee 10% of the Territory Fee.

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

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