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USA Insulation Franchise Costs & Fees

Date of Incorporation: 1985
Franchising Since: 2007
Headquarters: Eastlake, Ohio

Business Description: USA Insulation is the franchisor. The franchisee will operate a USA Insulation business offering residential insulation services for existing homes.

Franchise Offer: The franchisor offers franchisees the right to operate a business that offers residential insulation related services for existing homes using our proprietary marks and operating system within a defined geographic area typically comprised of at least 200,000 homes that were built prior to 1980.

Financial Assistance: The franchisor does not offer direct or indirect financing or guarantees franchisees’ note, lease or other obligations.

Training and Assistance: Initial training must be completed to the franchisor’s satisfaction approximately 2 weeks before scheduled opening of franchised business. This training is offered at the franchisor’s headquarters in Cleveland Ohio or another designated location. The franchisee must designate a manager for the franchised business and the initial training is mandatory for him or her. The franchisor expects the attendees will advance through the training at different rates, on a variety of factors including background and experience. There is no charge for the initial training. The franchisee is responsible for training their employees and other management personnel. The franchisor may require the franchisee to attend and complete an accredited course or training program regarding the proper use of QuickBooks. This training may be held in a classroom taught by a certified instructor or the franchisee may be permitted to complete online. Additionally, the franchisor may offer, and require the franchisee and management to attend, additional training programs and/or refresher courses, as deemed necessary.

Territory: The franchisee will operate from one location located in their Designated Territory and may not relocate the Franchised Business without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial term is 10 years from the effective date of the franchise agreement. If the franchisee meets the conditions, they may renew for 2 additional (and consecutive) 10 year terms.

Obligations and Restrictions: The franchisor requires that the franchisee personally participate in the actual operation of the business. Under certain conditions and with prior approval, the franchisor may permit the business to be operated by an on-premises manager who has completed the training curriculum. Franchisees are prohibited from offering or selling any products or services not authorized in writing by the franchisor. The business must be operated in accordance with the USA Insulation Operations Manual and policies.

Estimated Number of Units: 25

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $50,000 $50,000
Real Property $4,500 $6,000
Leasehold Improvements $1,500 $3,000
Equipment $45,000 $55,000
Supplies, Fixtures & Signs $5,000 $7,000
Professional Fees $500 $1,000
Deposits $1,500 $2,000
Opening Inventory $25,000 $27,000
Sales & Advertising $25,000 $40,000
Training and Travel Expenses Associated with Initial Training Program $1,500 $2,000
Insurance $750 $1,000
Additional Funds $25,000 $35,000
ESTIMATED TOTAL $185,250 $200,000
Other Fees
Type of Fee Amount
Royalty 5% of Gross Sales or $250, whichever is higher.
Renewal Fee $2,500
Transfer Fee Twenty-five (25%) percent of the then current Initial Franchise Fee.
Audit Fee Actual cost incurred.
Delinquency Charges and Interest 1.5% per month.
Ongoing Local Advertising Minimum 10-15% of Gross Sales each calendar month.
Regional Advertising Cooperative Contribution As agreed by Regional Participants, Regional advertising and franchisor.
Marketing Technology Fund Contribution Greater 2% of Gross Sales from preceding business week or $200/week.
Ongoing Product Purchases Varies.
Call Center Fee charged by approved suppliers.
Relocation Fee Actual cost incurred.
Remedial Training Fee $500 per day.

The above information has been taken from the FDD of USA Insulation. Year of FDD: 2016

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