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Proforma Franchise Cost & Fees

Date of Incorporation: 1978
Franchising Since: 1985
Headquarters: Cleveland, Ohio

Business Description: Proforma offers franchises for the operation of businesses specializing in the sale and distribution of printed business products and services, including business forms, commercial printing, specialty advertising items and related business supplies.

Franchise Offer: The Proforma System includes accounting methods, advertising, marketing and promotional techniques, preferential vendor relationships, volume purchasing power, account acquisition programs, personnel training and other matters related to the maintenance of uniform quality standards and to the efficient operation and supervision of businesses operated under the Proforma System. The Proforma System includes the right to offer and sell products and services on the Internet.

Financial Assistance: The Franchise Agreement authorizes the franchisor to invoice the franchisees’ customers, collect their account receivables, and pay their suppliers and certain other fees from the receivables the franchisor collects. The franchisee receives the balance after paying suppliers, the franchisor’s fees and other amounts to which he or she has agreed to pay the franchisor. Sometimes the franchisor advances funds on the franchisee’s behalf to pay his or her suppliers before they have received payment from the franchisee’s customers. At the discretion of the franchisor, it may advance money on the franchisee’s behalf to pay vendors for products before it has received payment from the franchisee’s customers. The franchisor reserves the right to change lenders and/or modify the terms of its financing arrangements at any time.

Training and Assistance: Before giving the franchisee the authorization to start operating the Franchised Business, the franchisor will provide four days of initial instruction in the operation of a Proforma Franchised Business. The training takes place at either its Cleveland, Ohio Support Center or in another location the franchisor selects. The franchisor will provide and pay only for the training instructors, facilities and required training materials. Regional business meetings are offered once per year. These optional two-day programs include product, sales, operational training and discussions of operational issues, with a focus on training issues. An annual convention is offered at a different site each year, lasting 3 to 4 days. The annual convention offers product, sales and operational training, various round-table discussions, recognition banquet, vendor showcase and other events.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchise owners, from outlets, or from other channels of distribution or competitive brands controlled by the franchisor.

Term of Agreement and Renewal: The franchise agreement becomes effective when both parties sign it and its term extends until either party terminates the franchise agreement as provided for in the franchise agreement.

Obligations and Restrictions: The franchisee must initially operate and manage the Franchised Business. At no time may the franchisee hire or retain a person to operate or manage the Franchised Business without first giving written notice, and obtaining written consent from the franchisor. The consent may be unreasonably withheld at sole discretion of the franchisor. The franchisee must provide training for the approved individuals who intend to operate the business. The franchisee only may advertise products and services on the Internet through web sites which the franchisor approves, which may be limited to web sites controlled by the franchisor or its affiliates.

Estimated Number of Units: 680

Investment Tables:
Initial Investment for a Start-Up
Name of Fee Low High
Initial Franchise Fee $14,750 $29,500
Customized Veteran's Fast-Track Marketing Kit (applicable only to qualifying U.S. Veterans under the Veteran Franchise Grant Program) $0 $4,000
Computer Hardware $0 $4,000
Internet Service Provider And Anti-Virus Software $30 $200
Equipment, Fixtures, Fixed Assets and Stationery $700 $3,000
First Month Pre-Opening Lease, Rent & Security Deposit $0 $2,000
Utility Deposits, Insurance and Licenses $0 $3,000
Travel, Room and Board for Initial Training $1,000 $2,000
Supplemental Training Fee $0 $495
Additional Funds Incurred during the Initial Phase, which Usually Lasts 3-6 Months $3,000 $6,000
ESTIMATED TOTAL $19,480 $50,195
Initial Investment for a Relevant Industry Experience or Conversion Franchise
Name of Fee Low High
Initial Franchise Fee $0 $0
Computer Hardware $0 $4,000
Internet Service Provider And Anti-Virus Software $30 $200
Equipment, Fixtures, Fixed Assets and Stationery $700 $3,000
First Month Pre-Opening Lease, Rent & Security Deposit $0 $2,000
Utility Deposits, Insurance and Licenses $0 $3,000
Travel, Room and Board for Initial Training $1,000 $2,000
Supplemental Training Fee $0 $495
Additional Funds Incurred during the Initial Phase, which Usually Lasts 3-6 Months $3,000 $6,000
ESTIMATED TOTAL $4,730 $20,695
Other Fees
Type of Fee Amount
Service Fee 5% - 9% of Gross Volume.
Marketing Fund 0.25%- 1% of Gross Volume.
Proprietary License Fee and Communication and Technology Support Fee $100 per month.
Supplier Rebates, Commissions & Consideration 100% of Amount Received.
Insurance Costs $300 - $1,000 per year.
Interest on Late Payments 15% per annum.
Long Distance Payments Franchisor’s cost of making/receiving calls on the franchisee’s behalf.
Payments to Third Parties Cost of products the franchisee orders.
Supplemental Training Fee Cost of meals and additional training materials.
Miscellaneous Fees: Direct Vendor Payment Charge 10% of the vendor invoice amount or a minimum of $100
Payment Conversion Fee 3 times amount the franchisee collects.
Account Acquisition Fee An amount equal to 24 times the average monthly service fee owed to the franchisor during the 24 months before the Termination Date.
Business Charter Default Fee $1,000

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

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