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TruBlue Total House Care Franchise Costs & Fees

Date of Incorporation: 2011

Franchising Since: 2011

Headquarters: Cincinnati, Ohio

 

Business Description: TruBlue franchises provide residential maintenance and repair, lawn care and residential cleaning services.

 

Franchise Offer: TruBlue offers franchises to operate businesses that offer home and property management services under the business name TruBlue. TruBlue franchisees offer residential maintenance and repair, lawn care and residential cleaning services. These services will be offered to all home owners, but the primary market will be seniors, individuals recuperating from injury or illness, individuals with disabilities that hinder or prevent them from doing these tasks themselves, and busy, affluent professionals.

 

Financial Assistance: Stock Yards Bank & Trust Company (SYBTC) will finance up to $20,000 of the initial franchise fee for a TruBlue franchise if the franchisor secures it with an equivalent amount on deposit in an account with SYBTC. TruBlue will secure the franchisee’s loan with SYBTC only if the franchisee meets its credit standards and the franchisee satisfies TruBlue that after diligent efforts he or she has been unable to obtain financing from other sources. In rare circumstances, TruBlue may finance up to $20,000 of the initial franchise fee. The actual amount TruBlue will finance and the repayment period will depend upon the franchisee’s previous employment and business experience, credit history, the amount, source and character of his/her assets, debts, income and any other factors that may affect his/her creditworthiness. TruBlue does not guarantee franchisees obligations to third parties. The franchisor does not offer financing for purchases of multiple TruBlue franchises.

 

Training and Assistance: The franchisor will train up to two people to operate a TruBlue franchise. All of the initial training is conducted at TruBlue corporate headquarters in Cincinnati, Ohio, by or under the supervision of President, Mark Cottle. The initial training program is mandatory. The franchisee, or the person designated as responsible for the general management of the franchised business, must begin the training program within 3 months after the franchisee signs the franchise agreement and complete it to the franchisor’s satisfaction. TruBlue has the right to require additional training and to charge franchisees a reasonable fee for it. Currently, TruBlue doesn’t provide or require franchisees to attend additional training programs or refresher courses after the successful completion of the initial training program.

 

Territory: TruBlue will grant the franchisee an exclusive territory delineated by Postal Codes. The franchisee will maintain the rights to the territory so long as he/she owns the franchise, even if the population increases. The territory a franchisee will receive for the base initial franchise fee will contain a population of up to 175,000. If the population of the territory exceeds 175,000, the franchisee must pay an additional $300 for all or part of every 1,000 people over 175,000. There is no maximum limit on the population of the territory. The franchisee may not operate the franchise in another franchisee's territory, except for Special Accounts and for Shared Referral Sources (such as local chapters of the National Council on Aging, in-home healthcare and senior care providers, senior centers, senior advocacy organizations, government agencies, temples, churches and mosques, financial planners, real estate agents, hospitals, medical offices and similar organizations) that will be shared by all franchisees in a market, and except for the situations described in the franchisor’s FDD.

 

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If the franchisee satisfies the required pre-conditions to renewal, TruBlue will offer he/she the right to obtain two additional 10-year terms.

 

Obligations and Restrictions: The franchisee is required to form a limited liability business entity to operate the TruBlue franchise, and one of the individual owners of the franchisee must personally manage the franchised business on a full-time basis. The manager must be approved by the franchisor and must have successfully completed the training program. The franchisee is required to offer and sell only those products and services that TruBlue has authorized. The franchisee is prohibited from offering any other products or services without approval.

 

Estimated Number of Units: 25

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $42,900 $48,900
Furniture and Office Equipment $500 $1,000
Tools and Equipment $3,000 $5,000
Computer System $4,000 $6,000
Travel and Living Expenses while Training $1,250 $2,500
Initial Telephone, Bank and Other Deposits $500 $1,000
Pre-Opening Promotion $3,000 $4,000
Real Estate and Improvements Varies
Licenses $100 $1,000
Limited Liability Entity $500 $1,000
Insurance $1,500 $5,000
Additional Funds - 3 months $8,000 $13,000
Vehicle $0 $2,000
ESTIMATED TOTALS (excluding real estate costs) $65,250 $90,400

 

Other Fees

Type of Fee Amount
Royalty Fee Greater of 6% of Gross Revenues or $300 per month.
National Branding Fee 2% of Gross Revenues; $350 per month minimum.
Local Cooperative Advertising Up to 3% of Gross Revenues unless a majority of the cooperative members agree on a higher contribution.
Transfer Fee Greater of $10,000 or 3% of purchase price, plus TruBlue’s legal and administrative costs.
Right Of First Refusal $3,000
Electronic Copies of Marketing Materials Variable.
Technology Fee $1,200 per year.
Late Fee Greater of $50 or 10% of payment.
Interest 18%
Customer Refunds Amount of expense advanced plus 18% interest.
Audit Fee Cost of audit plus 18% interest on under-payment.
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 TruBlue. Year of FDD: 2015

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