Concrete Craft Franchise Costs, Fees & FDD

Year Business Began: 2006

Franchising Since: 2008

Headquarters: Irvine, California

Estimated Number of Units: 85

Franchise Description: American Decorative Coatings, LLC is the franchisor. The franchisor’s immediate parent is Home Franchise Concepts, LLC, and its ultimate parent is JM Family Enterprises, Inc. The franchised business offers decorative concrete products and installation services, using the franchisor’s unique concrete resurfacing, concrete staining and concrete stamping systems. These applications are utilized both for interior and exterior surfaces. The franchised businesses may utilize subcontractors to pour patio extensions, new concrete slabs and other concrete applications. Franchisees will use a motor vehicle identified with signage specified by the franchisor to make sales calls and perform installation services.


Training Overview: Training consists of a combination of 10 days in-person academy training at the HFC Experience Center in Coppell, Texas as well as 11 hours pre- and post-academy training sessions that are conducted virtually. Franchisees or their manager must complete the initial training program to the franchisor’s satisfaction before they begin operating the franchised business. Upon reasonable notice and at no charge to franchisees, the franchisor may require them or their designated personnel to attend additional training courses, seminars, conferences or other programs that it considers relevant or appropriate to the successful operation of the system.

Territory Granted: During the term of the Franchise Agreement, the franchisor will grant franchisees a protected territory. The franchisor will not establish another franchised business in that territory that sells and installs decorative concrete products using its system and marks. The territory will be described by United States Postal Service ZIP Codes in the Franchise Agreement. Each territory will consist of approximately 100,000 households. The ZIP codes making up the territory will not change even if their boundaries are expanded or contracted by the Postal Service or if the population within them decreases or increases.

Obligations and Restrictions: The franchisor prefers franchisees who plan to participate actively in the direct operation and daily affairs of the franchised business. The franchisor does not want to grant franchises to people who are merely seeking a passive investment. If franchisees do not operate the franchised business themselves, franchisees must employ at least one manager on a full time basis. The manager does not have to have an equity interest in the franchise. Franchisees may offer and sell in the franchised business only goods and services that the franchisor has authorized franchisees to sell. Unless it instructs otherwise, franchisees do not have to sell all the products and services the franchisor authorizes, but it suggests that they do so. Franchisees are not permitted to offer or sell epoxy coatings with the limited exception of the epoxy clear coat used for stained concrete for added protection.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two consecutive renewal terms of five years each are available, if requirements are met.

Financial Assistance: If franchisees meet the credit standards, the franchisor will, at the franchisee’s request, provide financing for the initial franchise fee and part of the initial territory fee. To obtain financing, the franchisee must sign a secured promissory note and general security agreement.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$19,950	$19,950
Initial Territory Fee	$50,000	$50,000
Travel and Living Expenses While Training (per person)	$1,500	$2,500
Office / Work Space	Varies
Vehicle	$10,000	$48,000
Trailer	$0	$3,000
Computer	$1,250	$2,000
Credit Card Processing Technology	$30	$500
Auto Insurance	$1,800	$3,500
Commercial General Liability Insurance	$1,500	$2,500
Storage Unit (3 months’ rent)	$1,050	$2,000
Contractor’s License and Bond	$0	$1,500
Professional Fees	$750	$1,500
Initial Marketing	$10,000	$15,000
Additional Tools and Supplies	$28,500	$31,500
Additional Funds - Before Opening and First 3 Months	$30,000	$50,000
ESTIMATED TOTAL (does not include office / workspace costs)	$156,330	$233,450

 
Other Fees

Type of Fee	Amount
Royalty	Franchisees must pay the greater of: (a) 7.0% - 4.0% of the gross revenue for the immediately preceding month (scale slides downward) or (b) $750 per month for the first year and $1,500 per month thereafter.
Advertising Fund Payment	Franchisees must pay the greater of 1% of the gross revenue for the immediately preceding month or $500.
Technology Fee	Currently $450 per month for first territory; $200 per month for second and subsequent contiguous territories. Additional non-contiguous territories then-current technology fee for first territory. May be adjusted.
Training for Additional Personnel	First two attendees are free. The franchisor may charge up to $150 per day for additional attendees, plus travel, accommodation and meals.
Additional Territory Fee	An amount equal to the then-current initial territory fee if franchisees buy an additional territory in the future.
Key Account Certification and Referral Fees	The franchisor negotiates each program individually with the key account.
Encroachment Payment	100% of the franchisee’s gross sales in another franchisee's territory.
Fees on Transfer	If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory.
Transfer Lead Referral Fee	The then-applicable lead referral fee, currently $15,000 plus the amount of any broker fees that the franchisor must pay a third party (not an employee of the franchisor).
Renewal Fee	$5,000
Insufficient or Late Payment Fee	Currently, $300.
Convention Fee	Currently $750 plus travel, accommodation and some meals. Fee will vary depending on venue and location but will not exceed $2,000 annually.
Optional Meetings and Trainings	As determined by the franchisor, but generally $100 - $1,500 depending on venue and mode of delivery.
Additional Training Requested by the Franchisee	Currently $500 per day, plus travel and expenses.
Audit	Cost of inspection or audit.
Insurance	Franchisees must reimburse the franchisor’s costs.
Costs and Attorneys’ Fees	Varies.
Indemnification	Varies.

The above information has been compiled from the FDD of Concrete Craft. Year of FDD: 2024.

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