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Sit Means Sit Franchise Cost & Fees

Date of Incorporation: 2006

Franchising Since: 2009

Headquarters: Las Vegas, Nevada

 

Business Description: Sit Means Sit Franchise, Inc. is the licensor. Franchisees may operate their business from their home or from a formal training facility in which they have their own space to conduct dog training classes.

 

Franchise Offer: The franchise offered is for the operation of a dog training business using the “Sit Means Sit” system and standards.

 

Financial Assistance: The franchisor may offer to finance all or a portion of the franchisee’s initial fee. Otherwise, it is not the franchisor’s present practice or intent to sell, assign, or discount to a third party all or part of the financing arrangements nor does the franchisor receive any consideration for placing financing with third party lenders. The franchisor does not guarantee any note, lease or other obligation of franchisees.

 

Training and Assistance: Before franchisees commence operation of their Business, the franchisor will provide its Initial Training Program to one individual for no fee. Franchisees must have at least one Authorized Trainer that has satisfactorily completed the Initial Training Program to the franchisor’s satisfaction before franchisees begin operating their Business. The Initial Training Program consists of approximately 150 hours of training over roughly a 21-day period, and will take place primarily at or close to the franchisor’s corporate facility in Las Vegas, Nevada. The franchisor may, no more frequently than annually, require franchisees to attend additional training courses or programs. Franchisees may also make optional training courses or programs available to franchisees or their employees at locations it selects, to instruct franchisees on new procedures or programs which it considers to be of major importance, which will include dog training techniques, business operations, and marketing. The franchisor may periodically schedule an annual convention or other system wide or regional meeting at locations that it chooses.

 

Territory: Franchisees will receive an exclusive territory in their Trade Area. The franchise granted to the franchisee will not be for a specific location, but instead will be for the right to operate a single Business within a specific geographic area. The Trade Area will contain a “dog population” of between 20,000 and 40,000.

 

Term of Agreement and Renewal: The length of the initial franchise term 10 years from the effective date of the License Agreement. If the franchisee is in good standing, he or she can enter into 1 successor license agreement with a 10 year term.

 

Obligations and Restrictions: Franchisees are not obligated to participate personally in the business, but must designate an individual acceptable to the franchisor who will be principally responsible for communicating with the franchisor about business, operational and other ongoing matter concerning the business. Franchisees may sell and offer only those products and services that the franchisor approves.

 

Estimated Number of Units: 90

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee - New Licensee $45,000 $45,000
Initial Franchise Fee - Existing Licensee $25,000 $25,000
Real Property and Leasehold Improvements $0 $15,000
Equipment, Supplies, Materials and Signs $300 $1,000
Sit Means Sit Vehicle(s) $400 $23,500
Computer Hardware and Software $900 $5,000
Initial Training Fee $0 $2,500
Wages, Travel and Living Expenses during Training $620 $3,680
Opening Inventory Collars $630 $1,570
Pre-Opening Advertising (Includes Brochures, Business Cards and Magnets) $200 $700
Insurance Deposits and Premiums $150 $3,300
Licenses and Permits $25 $700
Professional Fees $0 $3,000
Demonstration Dog $50 $7,500
Additional Funds - 3 months $2,400 $11,400
Estimated Total $30,675 $123,850

 

Other Fees

Type of Fee Amount
Continuing Royalty $600 per month. If paid on the first day of the calendar month that is not a weekend day or a holiday, the Continuing Royalty will be $500 for that calendar month only.
Marketing Contribution 1% of Gross Sales.
Cooperative Advertising As determined by each Co-op and not to exceed 5% of Gross Sales.
Local Advertising Payment The difference between the amount spent on local advertising and 1% of Gross Sales for the previous calendar quarter.
Background Checks Our costs to perform background checks, which are presently between $165 and $300 per background check.
Franchise Financial Database Cost of a monthly license for the program, currently $14.95/month.
Non-Compliance Assessment $100 per occurrence, per week that you are not in compliance
Initial Training Fee After the first trainees $2,500 per person breach person that attends the Initial Training Program.
Housing during Initial Training Program $1,125 per person attending initial training.
Additional Training Courses As established by the franchisor. Fees will he uniform for all Licensees. Currently $150 per person per day. Franchisees must pay for your own travel, food, and incidental expenses.
Further Training As established by the franchisor. Fees will he uniform for all licensees. Currently $150 per person per day. Franchisees must pay for your own travel, food, and incidental expenses.
Annual Convention Attendance Fee Our then current charge, currently $211.50 per person Franchisees must pay for their own travel, food, and incidental expenses.
Transfer/Assignment The greater of (i) the franchisor’s out of pocket expenses associated with evaluating and documenting the proposed Assignment, (ii) $2,500, or (iii) 10% of the consideration paid for the Business.
Updated Information for Business Entity Licensee The franchisor’s direct and indirect costs, including reasonable attorneys’ fees, to review any revised information for a business entity licensee.
Under-Reporting of Gross Sales Amount determined to be owed plus interests on the underpayment at the highest rate allowable by law (not to exceed 18%).
Late Fee Interest of 10% per annum, or the highest interest rate allowable by law, whichever is less, on any unpaid amounts (with a minimum Fee of $25.00)
Charges for Unpaid Checks, Drafts or Electronic Payments The franchisor’s costs and expenses arising from the non-payment, including bank fees in the amount of at least $50 and other related fees incurred by the franchisor.
Default Reimbursement Franchisees must reimburse the franchisor’s costs and expenses arising from the franchisee’s default under the License Agreement, including reasonable legal fees.
Toll-Free Telephone Number Fee Charges Franchisees must reimburse the franchisor for any telephone charges that it incurs to receive and forward to franchisees telephone calls that it receives at its toll free number.
Supplier Approvals The franchisor’s costs of inspecting the franchisee’s proposed supplier facility and/or product and equipment and all product testing costs paid by the franchisor to third parties (including travel expenses), which the franchisor estimates to be between $3,000-$4,000
Inspections Franchisees must reimburse the franchisor for all of its costs and expenses (including travel expenses) incurred in connection with its inspection of the franchisee’s Business location(s), which the franchisor estimates to be between $3,000-$4,000
Indemnification Will vary under circumstances.
Liquidated Damages If the Franchise Agreement is terminated with cause, franchisees must pay the franchisor liquidated damages in the amount of $600, multiplied by the lesser of (a) 24 (the number of months in two full years); or (b)if less than24 months remain in the Term, the number of months remaining in the Term.

The above information has been taken from the FDD of Sit Means Sit. Year of FDD: 2015

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