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TSS Photography Franchise Costs & Fees

Date of Incorporation: 1983
Franchising Since: 1984
Headquarters: Oklahoma City, Oklahoma

Business Description: The franchisor is TSS Photography, LLC. The franchisor’s business consists of selling and servicing franchises to qualified individuals so that they may promote, market, and sell specialty photographic products under the trade name TSS Photography to individuals and groups that participate in youth sports, portrait and any special event activity.

Franchise Offer: The franchisee will operate a business that promotes, markets, and sells specialty photographic products to individuals and groups that participate in youth sports and social and school events.

Financial Assistance: The franchisor may, at its option, finance a portion of the initial franchise fee, territory fee, and purchases franchisees make from the franchisor (including purchases of cameras, other photography equipment, computer equipment, and the start kit). If the franchisor agrees to provide franchisees financing, they will be required to sign (at the same time they sign the Franchise Agreement) a Promissory Note.

Training and Assistance: The franchisor will train franchisees and one of their other personnel, tuition-free, provided all attendees attend training at the same time, in its sales and marketing techniques, business development, photography and order entry. Franchisees may travel to their Franchise Mentor’s Franchised Business at reasonable times, in the franchisor’s discretion, and during such times, the Franchise Mentor will provide franchisees hands-on advice and consultation about all operational aspects of the Franchised Business. This training is optional. The franchisor also provides an annual convention at a time and location to be determined by the franchisor. The franchisor may also provide mini-conferences throughout the year at times and locations to be determined by the franchisor. The franchisor also provides additional on-site training at the franchisee’s request and at times mutually agreeable to the franchisee and the franchisor for the per diem fee, plus travel, food, and lodging expenses.

Territory: Franchisees will receive an exclusive territory in which they will operate your Franchised Business (the Territory), which the franchisor will approve prior to franchisees signing the franchise agreement. The size of the exclusive Territory (including the geographic boundaries of the exclusive Territory) will be shown in the Franchise Agreement, and will usually be described as portions of a state, province, territory or region. The minimum territory the franchisor grants to franchisees typically consists of at least 100,000 in population. The continuation of the territorial exclusivity depends on the franchisee’s generation of a minimum level of revenues for the franchisor or its designee from the franchisee’s delivery of captured images to the franchisor for photofinishing, print production, and other imaging work.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees satisfy the requirements to renew the franchise, they may renew the franchise for two additional periods of 10-years each.

Obligations and Restrictions: The Franchise Agreement does not require franchisees to participate personally in the conduct of the Franchised Business. However, the franchisor is not seeking franchisees who intend for their franchises to be a mere passive investment or persons who are buying franchises for their children or relatives. The franchisor expects owners and managers to devote their best efforts to the conduct of the Franchised Business, although managers need not be equity owners in a franchisee that is a corporation, partnership, limited liability company, or other business entity. The franchisor also expects owners and managers to complete our training programs. Franchisees may promote, market, and sell only the specialty photographic products the franchisor approves. Franchisees may not promote, market, or sell any product or service that the franchisor has not previously approved. Franchisees must offer the entire product line.

Estimated Number of Units: 180

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $7,500 $7,500
Territory Fee $7,000 $27,000
Training Expenses $50 $100
Real Estate/Office $755 $800
Office Equipment, Supplies, Furniture $200 $3,300
Cameras and Other Photographic Equipment $0 $15,300
Computer Equipment $0 $4,000
Starter Kit $3,000 $3,000
Transportation – 3 months $750 $1,500
Advertising – 3 months $0 $1,000
Miscellaneous Opening Costs $250 $1,250
Website Maintenance $0 $250
Photofinishing, Print Production, and Other Imaging Work - 3 months $500 $1,250
Sales and Marketing Fund Contribution – 3 months $0 $525
Call Center Fee – 3 months $150 $150
Technology Fund Contributions – 3 months $150 $150
Additional Funds – 3 months $1,000 $6,000
ESTIMATED TOTAL $20,550 $74,275
Other Fees
Type of Fee Amount
Photofinishing, Print Production, and Other Imaging Work The franchisor has established minimum productivity requirements that each franchisee must attain.
Sales and Marketing Fund Contribution $0 - $175, unless the franchisor waives this fee in whole or in part.
Call Center Fee $50 per month, plus 10% of the Call Center Sales for a period of two years beginning, with respect to each lead provided to franchisees in connection with or generated by their participation in the call centers, on the date of first sale to such lead.
E-Commerce Fee Then-current fees charged by third-party vendors and the franchisor, which is currently 2% to 15% of purchase price paid for online sales.
Transfer Fee $5,000 or $10,000
Commission Under Finders Agreement $5,000
Additional Optional Training $600 per person for more than two trainees, but the charge is subject to change on notice to franchisees.
Additional Assistance $350 per diem consultation fee, plus expenses, but subject to change on notice to franchisees.
Renewal Fee $1,000
Territory Expansion $0.10 per member of the population in excess of the population in the existing Territory, unless the franchisor waives this fee in whole or in part.
Territory Exchange Either $1,000 or $750 plus $0.10 per member of the population in excess of the population in the franchisee’s existing Territory, unless the franchisor waives this fee in whole or in part.
Audit Reasonable cost of inspection or audit.
Indemnification Will vary under circumstances.
Insurance Will vary under circumstances.
Costs and Attorneys’ Fees Will vary under circumstances.
Custom TSS Website Maintenance None, unless the franchisee requests optional upgrades.
Technology Fund Contribution $50 per month, unless the franchisor waives this fee in whole or in part.
Software Updates Less than $500 per year.
Annual Convention $400 per attendee (unless the franchisor waives the annual convention fee).
Interest Lesser of maximum legal interest rate or 12% per annum.
Independent Representative Fee $5,500
Liquidated Damages As described in the Confidential Operating Manual.
Background Screening Fee $18-$20

The above information has been taken from the FDD of TSS Photography. Year of FDD: 2016

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