ACFN, The ATM Franchise Costs, Fees & FDD

Year Business Began: 1996

Franchising Since: 2003

Headquarters: San Jose, California

Estimated Number of Units: 235

Franchise Description: The franchisor is ACFN Franchised Inc. ACFN businesses are part of the ACFN automated teller machine (ATM) network and provide ATM services, financial transaction processing services, and related financial services, and ancillary goods to businesses and individuals. ACFN franchisees will market ATM services to hotels, retail locations, and other entertainment and travel-based businesses and will install ATMs at those host locations accepting the services and will perform all services and maintenance required of the ATMs.
Training Overview: The franchisor will provide initial training on the operation of an ACFN business to the franchisee’s managing owner and one additional individual. Initial training consists of four video conference calls providing training for franchisees (or their managing owner) and their employee at a time that the franchisor specifies. As part of initial training, the managing owner will receive training so that he/she is qualified to install and service the ATMs the franchisee will be operating. No other additional or refresher courses are required for franchisees to begin operation of the franchise. The managing owner must complete the initial training to the franchisor’s satisfaction. The franchisor may require the managing owner and/or previously trained and experienced employees to attend periodic refresher training courses at such times and locations that it designates, and it may charge reasonable fees for such courses.

Territory Granted: Franchisees will receive a non-exclusive area of operation, described in the Franchise Agreement, in which to locate ATMs. Franchisees will not receive a protected territory, nor will they receive any exclusive rights within the area of operation. The franchisor will work with franchisees to determine their area of operation, which will be based on their location, the distance they are willing and capable of traveling to service ATMs, and the location of other ACFN ATM locations and businesses. During the term of the Franchise Agreement and for so long as franchisees are not in default under the Franchise Agreement, however, the franchisor shall take such reasonable steps as it considers necessary to prevent any other franchisee from soliciting or serving any of the customer accounts at those locations where franchisees have established and are presently operating ATMs within their area of operation.

Obligations and Restrictions: Franchisees and their owners will grant to one individual owner (the managing owner), the authority to legally bind the franchisee in any dealings with the franchisor, or its affiliates, and to direct any action necessary to ensure compliance with the agreement and any other agreements relating to the ACFN business. The manager, if the franchisor consents to one, also must be bound to the provisions of the Franchise Agreement that allow the franchisor and its representatives or agents to take and collect, and reproduce and use, photographs, videos or any electronic or other records of franchisees, their owners or employees, their ATMs or other aspects of the ACFN business. Franchisees may only offer and sell those services and related goods that the franchisor has approved. Franchisees must offer all services and related goods that the franchisor designates as required for all franchisees. Franchisees may only use ATMs that fit the franchisor’s specifications and that they obtain from the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal of the term is for additional 10-year periods if requirements are met.

Financial Assistance: Neither the franchisor or its affiliates guarantee franchisees’ loans or other obligations, nor receive payments or other consideration for the placing of financing. The franchisor may provide financing for qualifying prospective franchisees under its guidelines. The franchisor may add, change or delete any financing programs at any time. The franchisor may offer franchisees financing of their initial franchise fee through a promissory note with ACFN.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Signs	$0	$200
ATMs and Other Equipment and Supplies	$4,889	$14,472
Additional Capital Required for ATMs	$5,000	$15,000
Office Equipment and Supplies	$200	$1,200
Initial Local Marketing Expense	$200	$200
Insurance	$700	$900
Professional Fees and Licenses	$550	$650
Initial Training Fee	$799	$799
Additional Funds – 3 Months	$500	$1,500
ESTIMATED TOTAL (assumes operation of 1 to 3 ATMs)	$37,838	$59,921

 
Other Fees

Type of Fee	Amount
Initial Local Marketing Expense	$200
Regional/National Ad Fee	Currently, 1% of net revenue; may be periodically decreased or increased to up to 1% of gross revenue upon written notice to the franchisee.
Interchange Fees/Transaction Surcharge Fee	Currently, ranges between $.15 and $.70 per separate transaction, but the vast majority of interchange fees fall within range of $.15 and $.45 per separate transaction. If the interchange fee system is eliminated or eroded, the franchisor will charge the franchisee a transactional surcharge equal to the difference between $0.35 and the interchange fee it actually receives (if any) per ATM transaction plus the reasonable processing expenses (currently, approximately $0.10 per ATM transaction). The transaction surcharge fees may not be increased more than 10% during any 12-month period.
Additional Transaction Surcharges or Fees	The franchisor may pass on any transaction surcharges or fees assessed by processors, banks and other third parties. Currently, the franchisor passes on all surcharges and service charges for international transactions, which currently is approximately 0.40% of the amount dispensed.
Interest on Late Payments	18% percent per annum beginning from the due date.
ATM Administration Fee	$12 per ATM in operation during the month and may not be increased more than 10% during any 12-month period.
Transaction Fee	$0.10 per transaction; subject to periodic increase by the franchisor but may not be increased by more than 10% during any 12-month period.
The Franchisee’s Portion of Any Minimum Guaranteed Payments Due Under Multiple Location Accounts (or MLA) Program	A percentage of the franchisee’s revenue above the net revenue threshold established per month for each of the franchisee’s ATMs in the same MLA as any underperforming locations.
ATM Relocation Fee	Currently $1,395 per ATM that must be relocated.
Service Fee	Actual costs and expenses, plus 20%.
Refresher Training Fee	Currently $399.
Supplemental Training Courses	Currently $399.
Additional Guidance and Assistance (if requested by the franchisee)	$0 to $500 or more.
Operations Manual Replacement Charge	$99 to replace the operations manual.
Capital Additions	Reasonable expenditures periodically.
Virtual Office Fee	Amount depends upon the franchisee’s monthly share of fees collected from the ATM locations. If the monthly share is less than $750, ACFN will waive the fee for the month; if the monthly share is $750 to $850, the franchisor will collect a fee of $50; if the monthly share is $850 to $5,000, the franchisor will collect a fee of $100; if the monthly share is greater than $5,000, the franchisor will collect a fee of at least $150, and the franchisor will increase this fee by $50 for each $5,000 increment the monthly share of fees collected is above the $5,000 amount.
Audit	Costs of audit or inspection; understatements plus interest at highest contract rate permitted by law.
Franchise Transfer Fee	$15,000
Purchase of Additional Term Under New Franchise Agreement	$2,000 for each full additional term year transferee is receiving under the new franchise agreement beyond the full term years remaining under the existing franchise agreement.
Management Fee	Currently $250 or more, per day.
Successor Franchise Fee	$10,000
Holdover Fee	$250 per month.
Costs and Attorneys’ Fees	Actual costs.
Wireless Connection Fee	$12.50 to $15.00 per month.
Additional ATMs, Cash Cassettes, and ATM Cabinets	$4,294 for each ATM; $595 for each cash cassette; and $995 for each required ATM cabinet (the above fees include shipping in the 48 contiguous states).
Corporate ATM Acquisition Fee	Varies.
Signing Bonuses	Typically, $500 to $2,000.
Insurance Reimbursement	If franchisees fail to obtain or maintain required insurance, the franchisor may (but is not obligated to) obtain and/or maintain such insurance from an insurer selected by the franchisor at the franchisee’s sole expense.

The above information has been compiled from the FDD of ACFN, The ATM Franchise. Year of FDD: 2024.

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