Transworld Business Advisors Franchise Costs, Fees & FDD

Year Business Began: 1979

Franchising Since: 2010

Headquarters: West Palm Beach, Florida

Estimated Number of Units: 485

Franchise Description: Transworld Business Advisors, LLC is the franchisor. The franchisor is a member of the Starpoint Brands division of United Franchise Group. The franchisee will own and operate a Transworld business which will serve as a broker/intermediary to facilitate the purchase and sale of existing businesses which can include existing franchised businesses and as a referral agent for franchisors. The market for business brokerage services will be primarily small to medium-sized businesses and prospective purchasers of these businesses.
Training Overview: Prior to opening a Transworld agency, franchisees must attend and complete to the franchisor’s satisfaction an extensive initial training program held at the corporate headquarters in West Palm Beach, Florida and at TBB’s Transworld agency in Fort Lauderdale, Florida. Franchisees may bring additional persons to the initial training at a cost of $595 or the then current fee per person and will be responsible for their travel, hotel and meal expenses. Classroom training is conducted in West Palm Beach and Fort Lauderdale, Florida. The on-the-job training is primarily conducted with franchisees in their designated marketing area following completion of the classroom training. The initial training program is three weeks in duration. The franchisor also conducts a training program for the franchisee’s salespersons. All new salespersons franchisees hire must attend. Every 12-18 months the franchisor will hold a convention for franchisees. In addition, the franchisor will conduct seminars and conventions on topics relating to ongoing training and improving the operation of the franchisee’s Transworld agency.

Territory Granted: Franchisees are granted the right to operate a Transworld agency within a designated marketing area. The agency must be located in the franchisee’s designated marketing area, which will be a geographic area defined and named by the franchisor which contains 8,000 or more registered businesses. Franchisees must confine all their agency-related business activities to their designated marketing area including, but not limited to meetings, conferences, community service and educational programs. While franchisees are not restricted from accepting clients from outside the designated marketing area, they must restrict the targeting of public relations, promotional, sales and marketing activities and the activities of their agents to individuals and businesses located within the designated marketing area and shall not actively market areas outside of the designated marketing area using the Internet, telemarketing or other forms of direct marketing and cannot indicate in any media, print or electronic, that they have a location or provide services in any area outside of the designated marketing area. The designated marketing area is exclusive, and the franchisor will not open or operate company-owned agencies and/or grant additional franchisees the right to open or operate a business brokerage within the designated marketing area. The continuation of the franchisee’s exclusive area is dependent on satisfying certain conditions.

Obligations and Restrictions: If franchisees are an individual, they must directly supervise and manage their Transworld agency. If franchisees are a corporation, partnership or other business entity, a principal, general partner or their fully trained manager must devote full-time and best efforts to the management and operation of the Transworld agency. The Transworld agency must at all times be under the direct supervision of someone who has completed the training program. Franchisees must also maintain a competent, conscientious, neat and trained staff. The franchisor requires franchisees to offer and sell only services and goods that the franchisor has approved, but there is no obligation to provide all of the services and goods authorized by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 35 years. Renewal is for another 35-year term, if requirements are met.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease, or obligation of franchisees, or has any practice or intent to sell, assign, or discount to a third party all or any part of any financing arrangement of franchisees.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$67,500	$67,500
Travel and Living Expenses While in Training School	$260	$660
Marketing Fund Initial Membership Fee	$850	$850
Premises Lease	$1,000	$8,700
Initial Advertising	$3,300	$7,200
Software and Supplies Package	$21,995	$21,995
Equipment and Office Software	$700	$2,750
Insurance	$2,500	$4,900
Additional Funds (6 months)	$6,000	$16,500
ESTIMATED TOTAL	$104,105	$131,055

 
Other Fees

Type of Fee	Amount
Royalty	A monthly fee equal to the greater a monthly minimum royalty fee ($500 - months 1-12, $1,000 every month thereafter), or 10% of gross revenues up to $750,000, 9% of gross revenues up to $1,500,000, and 8% of gross revenues over $1,500,000.
Marketing Fund Contribution	The greater of: 1) 1% of gross revenues, or 2) $250 for the first designated marketing area and $210 per month for each additional designated marketing area.
Market Cooperative Contribution	As determined by the co-op. Currently, none.
Transfer Fee	The greater of: 1) $36,500 for the transfer of each designated marketing area, 2) 10% of the price for the sale of the designated marketing area (not to exceed an amount equal to the then-current franchise establishment fee under the then-current Franchise Agreement), or 3) the then current transfer fee for a designated marketing area.
Renewal Fee	$5,500
Agent Fee	$195 per month for the franchisee and $165 per month or then current fee for each additional agent.
Salesperson Training Fee	$595 or then current training fee per person attending training plus travel & hotel expenses.
Franchise Resale Program Fee	10% referral fee of commission on sale of franchise business.
Audit-Inspection Costs	Cost of audit-inspection, including travel, hotel, meals, salaries or fees.
Non-Compliance Fee	$250-$500 per compliance violation.

The above information has been compiled from the FDD of Transworld Business Advisors. Year of FDD: 2025.
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