Fibrenew Franchise Costs, Fees & FDD

Year Business Began: 1985

Franchising Since: 1987

Headquarters: Black Diamond, Alberta, Canada

Country of Origin: Canada

Estimated Number of Units: 310

Franchise Description: Fibrenew USA, Ltd. is the franchisor, and the parent company is Fibrenew International, Ltd. Franchisees will operate a mobile service that repairs, cleans, re-dyes and restores leathers, vinyls, velours, and plastics under the franchisor’s trademarks, service marks, trade dress, color schemes and logos and using its distinctive programs, procedures, protocols, standards, manuals and other confidential business systems, practices, and materials.
Training Overview: If franchisees are signing the Franchise Agreement for a new franchised business or if franchisees are signing the Franchise Agreement as a buyer in a resale, then before they attend classroom training, they or their designated manager must complete to the franchisor’s satisfaction the following pre-training tasks: a complete marketing plan of their territory, home office and workspace setup, suggested business development learning and required reading. The franchisor estimates these tasks will take approximately 20 to 30 hours plus time for required reading. The classroom training program consists of 70 hours of classroom training over a 12-day period at the franchisor’s facility in Calgary, Alberta. (As of the date of this disclosure document, a hybrid training model is in effect with the option of in-person or online classroom attendance, in real time.) Immediately following classroom training, franchisees must begin, and complete to the franchisor’s satisfaction, the field training program. The franchisor estimates that the field training program will take approximately one year to complete. The franchisor offers continuing education courses. Participation in a minimum of one course per calendar year will be mandatory unless the franchisor waives the requirement.

Territory Granted: Each Fibrenew franchisee is granted an exclusive territory, but no specific location is designated for the premises of the franchised business. Generally, the exclusive territory will include a population of up to 300,000 people but will be no greater than 100 driving miles between its furthest points. If franchisees are in good standing under the Franchise Agreement, except with respect to home-office services, the franchisor will not directly or indirectly operate, nor license or franchise another person to operate, another Fibrenew business within the exclusive territory, nor sell Fibrenew products to another service provider in the exclusive territory, subject to the franchisor’s Preferred Vendor Account & Customer Service policies.

Obligations and Restrictions: The franchisor does not require that franchisees participate personally in the direct operation of the franchised business, or that their service be supervised by franchisees or by someone with an equity interest in the business. However, the franchisor does require that franchisees attend and participate in the training. If franchisees do not personally participate in the direct operation of the franchised business on a full-time basis, then they must have a designated manager who will devote all his or her productive time and effort to the management and operation of the service on a full-time basis. Franchisees must offer all the services and only the services that the franchisor has authorized them to provide and in strict conformity with the methods, standards and specifications it requires in the manual or in writing, as periodically amended.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing, they may renew for consecutive five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s obligations to third parties.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee	$47,000	$47,000
Start-Up Fee	$42,000	$42,000
Liability Insurance – 1 year	$800	$2,355
Vehicle Insurance – 1 year	$800	$3,975
Organizational Expenses	$250	$5,150
Training/Travel Expenses	$0	$2,750
Office & Miscellaneous Equipment	$495	$750
Work Vehicle with Fuel – 6 months	$2,400	$5,560
Vehicle Signs	$4,000	$6,960
Internet and Wireless Access – 6 months	$600	$1,000
Business Licenses/Permits	$50	$200
Office or Storage Area	Unable to Estimate
Internet Marketing – 6 months	$1,200	$1,200
Additional Funds – 6 months	$1,000	$2,575
ESTIMATED TOTAL	$100,595	$121,825

 
Other Fees

Type of Fee	Amount
Technical Assistance Fee	Varies, but not less than $795 per month.
Payment for Proprietary Products	Minimum of $2,500 per year.
Fee for Initial Training for Additional People	Then-current fee (currently $5,000).
Continuing Education	Generally, $500 to $1,000 per trainee per year (plus taxes, travel costs and living expenses if training is in person).
Processing Fee for Renewal	$500
Administrative Fee for Changes in Ownership Interests That Are Not Considered “Resales”	$500
Resale Fee for Transfers That Constitute a “Resale”	Then-current resale fee (currently $32,000).
Software Application Fees	Will vary under circumstances.
NSF or Late Payment Fee	$45 per occurrence.
Other Taxes	Amount assessed against the franchisor by federal, state and local tax authorities on any payments franchisees make to the franchisor.
Inspection Cost Recovery	Cost of inspection, plus related expenses.
Indemnification Costs	Will vary under circumstances.
Dispute Resolution Costs	Will vary under circumstances.
Expenses of Analyzing Request for Additional Item, Service or Supplier	The franchisor’s reasonable expenses it incurs in its analysis.
Insurance	If the franchisee fails to obtain insurance, the franchisor may obtain insurance for the franchisee and the franchisee must reimburse the franchisor for the cost of insurance obtained plus 20% of the premium for an administrative cost of obtaining the insurance.
Liquidated Damages	Varies.

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

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