Archadeck Franchise Costs, Fees & FDD

Year Business Began: 1980

Franchising Since: 1984

Headquarters: Glen Allen, Virginia

Estimated Number of Units: 105

Franchise Description: Archadeck Franchisor LLC is the franchisor. The parent company is Outdoor Living Brands, Inc. The franchise offered is the right, license, and obligation to establish and operate an Archadeck Outdoor Living business within a certain geographic area under the terms and conditions of the Archadeck Outdoor Living Franchise Agreement. The construction sales and service business (the Archadeck franchise) is a contracting service business, which includes the marketing, selling, designing, repairing, remodeling, enhancing, constructing, installing, and maintaining of recreational, residential and commercial products and services, including, decks, screened porches, gazebos, sun rooms, room additions, garages, ramps, docks, trellises, bridges, arbors, landscape pavers, stone and paver patios and other hardscaping, and accessories like children’s play sets, awnings, benches, planters, privacy fences, deck lighting, swing supports, light landscaping design and planting services, and other remodeling, repairing, and altering services that enhance and complement the business.
Training Overview: Franchisees or, if they are an entity, a person designated to manage the business (the designated business manager) must attend and successfully complete the franchisor’s mandatory training program to its satisfaction before opening the business. The initial training program will take place at the franchisor’s facilities in Richmond, Virginia, or another field location designated by the franchisor. Training may include a discussion of the system, techniques, procedures, installation and methods of operation, advertising, sales techniques, promotional ideas, marketing plans, customer relations, instructions on quality standards, administrative practices and procedures, safety practices, accounting practices, and practical experience in the operation of a franchise. The franchisor may hold a mandatory annual conference to discuss sales techniques, new service and product developments, operations, marketing strategies and tactics, training, bookkeeping, accounting, performance standards, advertising programs, merchandising procedures and other topics. The franchisor may also hold periodic conferences to discuss sales techniques, new product or service developments, bookkeeping, training, accounting, inventory control, performance standards, advertising programs, merchandising procedures and other topics.c

Territory Granted: Franchisees will be granted a protected territory in which to operate the construction sales and service business under the Franchise Agreement (the territory). The territory is based on demographics and other characteristics including population density, home values, average income and other characteristics of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. A typical territory will have a population of less than 600,000 people (the population limit). If franchisees are granted a territory in excess of the population limit, then they will need to pay an additional population fee, which equals $0.083 per individual in the territory in excess of 600,000 individuals. Franchisees will maintain rights to their territory even though the population in the territory may increase or decrease. The franchisor will not operate locations or grant franchises for another construction sales and service business within the territory unless, during each full calendar year following the operational start date, franchisees do not attain certain levels of annual gross sales. There is no minimum annual sales quota for the first full calendar year after the operational start date.

Obligations and Restrictions: The franchisee must be an entity by the time operations commence. The direct, on-site supervision must be done by a designated business manager, which could be one of the employees. The designated business manager is not required to own a beneficial interest in the business entity. Within the first three to five months of operations, franchisees must hire a designated office manager who will be responsible for administrative support. Franchisees must sell or offer for sale only those services and products which are authorized by the franchisor and which meet its standards and specifications. While operating the construction sales and service business, franchisees may also operate any non-related business or offer sales and services unrelated to the construction sales and service business, provided they are neither offered nor conducted under the “Archadeck Outdoor Living” name or mark, nor by the corporation or other business entity operating as an Archadeck Outdoor Living franchisee.

Term of Agreement and Renewal: The length of the initial franchise term is seven years. If franchisees wish to do so, and they satisfy all of the pre-conditions to obtaining a successor franchise, the franchisor will offer them the right to obtain an additional term of for a period of time equal to the then-current initial term (but no less than five years).

Financial Assistance: Under limited and special circumstances, the franchisor may make optional financing available to qualifying franchisees. In those situations, the franchisor may finance up to 80% of the franchise fee for up to 24 months, provided franchisees sign the promissory note at the time they sign the Franchise Agreement. Other than as described, the franchisor does not offer direct or indirect financing and it does not guarantee a franchisee’s note, lease or obligation. The franchisor reserves the right to terminate its financing program at any time, offer different terms or assist franchisees in obtaining financing in the future.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$59,500	$59,500
Guarantee Fund Initial Payment and Monthly Contributions	$5,000	$5,000
Tools and Equipment	$1,000	$2,500
Travel and Living Expenses While Training	$6,000	$7,500
Computer Hardware and Software	$3,900	$4,800
Start-up Advertising for First 3 Months	$15,000	$25,000
Start-up Expenses and Working Capital for First 3 Months	$30,000	$35,000
ESTIMATED TOTAL	$120,400	$139,300

Other Fees

Type of Fee	Amount
Royalty	Franchisees must pay a royalty based on monthly gross sales equal to: $0 to $1,000,000: 6.5% Over $1,000,000 to $2,000,000: 5.5% Over $2,000,000 to $3,000,000: 4.5% Over $3,000,000: 3.5% Beginning in the second full calendar year following the Operational Start Date (as defined in the Franchise Agreement), during the months of March through November, the royalty must exceed $1,500.
National Branding & Marketing Fee	Currently, 1.5% of gross sales.
Individual Advertising Investment	A minimum of $50,000 per territory each year. Minimum $80,000 per calendar year if franchisees are granted two contiguous territories, plus an additional $20,000 per calendar year for each additional contiguous territory.
Digital Marketing Fee	The then-current fee, currently $300 per month.
NGC Contribution	0.25% of gross sales until the franchisee’s NGC account reaches $15,000, and then 0.10% of gross sales thereafter.
Technology Fee	Then-current fee, which is currently $325 per month. Up to $500 per month.
Bookkeeping Services Fee	The then-current Bookkeeping Services Fee. Currently, $350 per month, plus $55 per hour of additional support.
Construction Drawing Services	Based on the then-current hourly rate for the services, which is currently $100 per hour.
Transfer Fee	$10,000
Late Payment and Interest Charges	$100 per late payment plus interest equal to 1.5% per month or the highest legal rate permitted by law will be charged on any amounts past due.
Insufficient Funds Fee	The then-current service charge (ranging from $10 - $50), plus any fees and expenses incurred by the franchisor.
Cost of Enforcement or Defense	All costs including accounting and attorneys’ fees, plus interest on such amounts.
Seminars, Conventions or Programs	The then-current conference fee (between $500 to $1,000) per person, plus the actual cost of materials (if any).
Audit	Cost of audit or inspection.
Indemnification	Varies based on circumstances.
Successor Franchise Fee	10% of the then current franchise fee for the applicable territory.
Insurance	Varies.
Supplier Approval	Currently, the franchisor does not charge any fees to evaluate an alternative supplier. Up to $500 per request.
Additional Assistance	The then-current fee, up to $500 per person per day, plus any related travel expenses.
Customer Service Fee	Varies.
Supplemental or Refresher Training	Then-current fee.
Early Termination Fee	An amount equal to 24 times the average monthly royalty fees payable to the franchisor over (i) the last 12 months of the franchised business’s active operations, or (ii) the entire period the franchised business has been open for business, whichever is the shorter period.

The above information has been compiled from the FDD of Archadeck. Year of FDD: 2025.
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