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Property Management Inc. Franchise Costs & Fees

Date of Incorporation: 2008
Franchising Since: 2008
Headquarters: Lehi, Utah

Business Description: Property Management Incorporated Franchise, LLC is the franchisor. Property Management Inc. provides a broad spectrum of residential, commercial and association property management and real estate services.

Franchise Offer: The franchise offered is to establish, operate, and market a broad spectrum of property management and real estate services to the following sectors: residential, association, and commercial.

Financial Assistance: The franchisor does not currently offer any direct or indirect financing to franchisees and does not guarantee any lease, note, or obligation for any franchisee.

Training and Assistance: The franchisee and up to one other person are required to participate in and successfully complete two phases of training (the “Training Program”). The first (“Phase I) will be conducted remotely, by conference or webinar over a six week period. The number of hours required for Phase I may vary greatly, depending on the franchisee’s business experience and existing business structure. There will be one hour of scheduled and supervised conference call and webinar training per week, for six weeks, plus several hours of on-the-job training. The second (“Phase II”) will be held for five days at the franchisors corporate offices in Lehi, Utah. The franchisee is responsible for all expenses incurred who attend the Operations and Training Orientation Program and any other training programs. The franchisor will require the franchisee or Operating Principal to attend refresher or secondary training programs and seminars from time to time. The franchisee will be required to attend an annual conference if it is held.

Territory: The franchisee will be assigned a non-exclusive territory. However, the franchisor will not establish more than one company-owned office or franchised office until the Territory population exceeds 200,000 people. The franchisee may relocate the business only within their Territory.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If requirements are met, the franchisee can renew for 1 additional 10-year term.

Obligations and Restrictions: It is recommended that the franchisee participate personally in the direct daily operations of the business, though it is not required. A Principal Operator may be designated to be responsible for the day-to-day operations of the business. The Principal Operator must be present at the office, during standard business hours, on a daily basis for at least the first 2 years of operations. The franchisee must sell only products and services approved by the franchisor and may not use the Business, Systems, or Marks for any other purposes.

Estimated Number of Units: 125

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $15,000 $30,000
Rent $0 $1,500
Rental Improvements $0 $2,500
Deposits $0 $2,500
Training Expenses $100 $2,000
Furniture, Fixtures, Equipment, and Software $0 $3,000
Computer Hardware and Software $300 $2,500
Accounting Program – 3 months $0 $1,000
Advertising Expenses $3,000 $4,500
Opening Advertising, Marketing and Supplies $500 $3,000
Insurance $500 $2,000
Professional Services $0 $1,500
Additional Funds (3 months) $0 $5,000
ESTIMATED TOTAL $19,400 $60,000
Other Fees
Type of Fee Amount
Royalty Greater of $300 or 6.0% of “Gross Revenue” per month.
PMI Launch – Advertising and Marketing $500 to $2,000
National Advertising Fee, if implemented 2.0% of Gross Revenue per year.
Territory Advertising Expense Minimum of $1,000 per month.
PMiBooks Accounting Program Minimum $10 per month per residential and commercial unit.
PMi Software $3.00 per Residential and Commercial unit, purchased in increments of 10 units.
PMiWare Varies.
Audit Fee/td> If Gross Revenue is understated by 2% or more, the franchisee pays the franchisor’s cost to audit.
Transfer Fee $10,000
Renewal If franchisees qualify to extend their rights to operate their business the franchisor charges a Successor Franchise Fee.
Late Fees or Interest on Late Payments Highest allowable rates by law or 1.5% per month.
Insurance An annual premium of approximately $500 - $2,000
Fees on Default and Indemnity All costs associated.
Additional Assistance or Additional Training Cost Current fee which is now $600 per day, plus travel reimbursement.

The above information has been taken from the FDD of Property Management Inc. Year of FDD: 2016

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