Miracle Method Surface Refinishing Franchise Costs, Fees & FDD

Year Business Began: 1979

Franchising Since: 1996

Headquarters: Colorado Springs, Colorado

Estimated Number of Units: 195

Franchise Description: Miracle Method LLC is the franchisor. The franchisor’s parent company is Threshold Brands, LLC. Miracle Method businesses restore bathtubs, sinks, showers, tile, countertops, and similar surfaces in homes and businesses. Franchisees are required to lease or buy an office, showroom and workshop to operate their Miracle Method business and showcase Miracle Method products and services.
Training Overview: Franchisees must secure a location for the premises, and the franchisor recommends hiring at least two technicians and one front office person before they attend the initial training program. Before franchisees attend the initial training program, they must successfully complete five days of on-the-job training at a Miracle Method Franchise located in Colorado Springs, or another location the franchisor designates. The on-the-job training will consist of working in the franchise to gain a practical understanding of a functioning Miracle Method business. Before the Miracle Method business opens, franchisees (or the managing owner, if franchisees are an entity) and at least three members of their staff must complete the initial training program to the franchisor’s satisfaction. The initial training program is held at the franchisor’s corporate headquarters in Colorado Springs, Colorado or at a location designated by the franchisor. Training sessions may also be held at franchise locations as approved by the franchisor. The initial training program lasts approximately 15 business days. Franchisees and their employees will be required to satisfactorily complete various training programs, courses, workshops, certification programs and continuing education courses the franchisor periodically provides, at their cost, at the times and locations the franchisor designates. The franchisor may require franchisees, their designated manager, or their staff to attend seminars or training programs as required in the manual. Franchisees or their designated manager must attend each convention. Franchisees or their designated manager must also attend at least one workshop every calendar year.

Territory Granted: The Franchise Agreement for the Miracle Method franchise grants franchisees a designated territory based on the geographic area and population properties within that area and other relevant demographic characteristics. The franchisor will grant only one license to a franchisee for any area with a population of approximately 150,000 persons in the designated geographical location. The boundaries of the territory will coincide with the boundaries of one or more adjacent zip codes. Franchisees may engage in direct advertising and solicitation of clients only within the boundaries of their territory. During the term of the Franchise Agreement, so long as they comply with all of their obligations to the franchisor, and subject to the franchisor’s rights discussed in the FDD, neither the franchisor nor its affiliates will operate, or license another party to operate, a Miracle Method business using the marks licensed to franchisees that is operated from a physical premises located within the territory.

Obligations and Restrictions: The Miracle Method franchise shall be managed by franchisees, or if they are an entity, by one of the owners who is a natural person with at least a 25% ownership interest and voting power in the entity (managing owner). Under certain circumstances, the franchisor may allow franchisees to appoint a designated manager to run the day-to-day operations of the Miracle Method franchise. Franchisees (or managing owner) and the designated manager, if any, must successfully complete the initial training program. A designated manager need not have an ownership interest in the franchise. Franchisees may sell only those products and services the franchisor approves of and only in a manner that meets its system standards. The franchisor reserves the right to change the types of products or services franchisees are permitted or required to offer, and to the extent permitted by law, set minimum or maximum prices on those products or services.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees are in good standing and they meet other requirements, they may add one successor term of five years.

Financial Assistance: The franchisor may offer financing of up to the full amount of the initial franchise fee as disclosed to prospects who meet the qualifications, including creditworthiness. Except as disclosed, the franchisor offers no financing arrangements to Miracle Method franchisees. The franchisor does not receive payment or other consideration for the placing of financing. The franchisor does not guaranty any note, lease or obligation franchisees enter into for their Miracle Method business.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
3-Months’ Lease Payments	$6,000	$7,500
Computer Hardware and Software	$2,000	$3,000
Vehicles	$2,400	$7,200
Equipment and Materials	$6,000	$18,000
Office Equipment and Supplies	$1,500	$3,500
Business Licenses and Permits	$2,500	$2,500
Professional Fees	$1,500	$2,000
Insurance – 3 Months	$4,500	$7,500
Supplemental Training Fee	$6,000	$6,000
Training Expenses	$4,500	$16,000
Initial Marketing Program	$10,000	$10,000
Additional Funds – 3 Months	$5,050	$13,850
ESTIMATED TOTAL	$101,950	$147,050

 
Other Fees

Type of Fee	Amount
Royalty	The greater of 5.5% of gross revenues in the territory or the minimum royalty based on the size of the territory.
Brand Fund Fee	2% of gross revenues per month.
Co-op (cooperative) Advertising	As agreed by the co-op, but no less than the minimum co-op advertising fee (currently $.0033 per person in the territory and can be increased up to $.0066 per person in the territory).
National Accounts Program Administrator Fee	The then-current fee (currently between 1% and 5% of invoiced amount).
National Accounts Program Training or Technical Certification	Cost of certified staff plus the franchisee’s travel and living expenses.
Territory Infringement Fines	$1,000, plus invoice amount for first violation; $5,000, plus invoice amount for second and subsequent violations.
Insurance	Franchisees must reimburse the franchisor’s costs plus a 10% administrative fee.
Additional Training	The then-current fee (currently $300-$800) per attendee per day, plus expenses.
Workshop Fee	$300-$800 per attendee.
Telephone Fee	Approximately $35 per month.
Technology Fee	Up to $1,000 per month (currently approximately $600 per month).
Chemicals and Products	Variable.
Payment Processing Services	$35/month per account plus transaction fees.
Email License Fee	$12-$16.50 per license per month, depending on type of license.
Accounting Software License Fee	$51.75 per license per month.
Customer Management Software License	$70 per license per month.
Website Fee	$150 per website per month.
Convention Fee	Up to $1,500 per attendee depending upon costs.
Absentee Fee	Then-current fee (currently ranges from $1,000 to $1,500 per person).
Excess Usage of Bonding Agent	Then-current fee (currently $300 per bonding agent kit).
Supplier and Product Evaluation Fee	Cost of inspection and test of sample (approximately $100 to $500 per test).
Customer Issue Resolution	Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.
Payment Service Fee	Up to 4% of total charge.
Late Fees	12% interest and $100 per occurrence.
Failure to Submit Required Financial Report Fee	$100 per occurrence, and $100 per week until the report is submitted.
Audit	Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $15,000).
Indemnification	Varies under circumstances.
Professional Fees and Expenses	Will vary under circumstances.
Successor Franchise Fee	$5,000
Transfer Inspection Fee	$2,500
Transfer Fee	The greater of $15,000 or 4% of the sale price of the Miracle Method business, plus any broker fees.
Liquidated Damages	Varies under circumstances.
Broker Fees	The actual cost of the brokerage commissions, finder’s fees, or similar charges.
Territorial Modification Fee	The franchisor’s actual costs associated with the modification of the territory.
MM System Fee	Will vary based upon services.
Marketing Services	Then-current fee charged for marketing services.

The above information has been compiled from the FDD of Miracle Method Surface Restoration. Year of FDD: 2025.
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