Franchising Since: 1984
Headquarters: Columbia, Maryland
Estimated Number of Units: 135
Franchise Description: Screenmobile Franchising SPE LLC is the franchisor. The franchisor’s parent company is AB Assetco. Authority Brands, Inc. is the indirect parent company. The franchise provides residential and commercial window, patio, and door screens—from repairs to new screens—and other related services. Franchisees will operate their Screenmobile franchised business as a mobile business from a truck or van. Most franchisees operate the franchised business out of their home, but they may choose to rent a self-storage facility, executive suite office, or other commercial space.
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Territory Granted: Franchisees will have a protected territory during the term of the Franchise Agreement, provided they are in full compliance with the terms of the Franchise Agreement, including certain minimum performance requirements and their obligation not to service customers outside of their territory. “Protected” means that the franchisor will not operate a business under the marks and the system in the territory or authorize others to operate Franchised Businesses within the territory, with certain exceptions. A typical territory will consist of a population of approximately 150,000 households and will be defined using postal zip codes present at the time the territory is established. In its sole discretion, the franchisor may allow franchisees to add zip codes to their existing territory during the term of their Franchise Agreement. If the franchisor does so, franchisees will be required to pay a fee for the households included within the added zip code boundaries, currently $0.15 per household.
Obligations and Restrictions: Franchisees must form a corporation, limited liability company, or other business entity to own the franchised business. Franchisees must designate an individual who will be responsible for the day-to-day operational performance of the franchised business and who has the authority to bind the franchisee in all decisions regarding the Franchised Business (the “key person”). The key person need not be an owner of the franchised business. However, the key person must complete our initial training program and must work on premises at the business office. The spouse of an owner is not required to sign a personal guarantee if the spouse has no ownership interest in the business entity. However, the spouse will be required to sign a Spouse Acknowledgement. Franchisees are required to offer and sell all products and services that the franchisor designates as required items for Screenmobile businesses. Franchisees may also offer for sale any optional products and services that the franchisor has approved for sale in the franchised business.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew the Franchise Agreement for one additional term of 10 years if they meet certain conditions.
Financial Assistance: In the franchisor’s discretion, it may permit franchisees to finance up to 75% of the franchise fee and territory Fee rather than paying the entire amount in a lump sum when they sign the Franchise Agreement. However, the franchisor does not offer financing for any transaction involving brokers or any other third party referral sources. Except as described, the franchisor does not offer direct or indirect financing to franchisees. The franchisor will not guarantee a franchisee’s promissory note, lease, or other obligation.
Estimated Initial Investment
| Name of Fee | Low | High |
| Franchise Fee | $49,500 | $49,500 |
| Start-Up Package | $43,500 | $43,500 |
| Inventory and Supplies | $20,000 | $25,000 |
| Travel Expenses for Initial Training | $1,500 | $4,000 |
| Vehicle Lease | $0 | $7,500 |
| Signage | $3,500 | $7,000 |
| Vehicle Registration Fees | $1,500 | $2,000 |
| Insurance | $2,000 | $12,000 |
| Software | $249 | $2,292 |
| Telephone Lines and Wireless Internet | $300 | $800 |
| Lease, Utility and Security Deposits, and Storage | $0 | $2,500 |
| Additional Funds – 3 months | $22,500 | $50,000 |
| ESTIMATED TOTAL | $144,549 | $206,092 |
Other Fees
| Type of Fee | Amount |
| Royalty | 7% of gross revenue. Beginning month 4 following the original opening date, 7% of gross revenue or the minimum royalty fee, whichever is greater. |
| Brand Fund Contribution | Currently, 2% of gross revenue. |
| Brand Fund Materials | The franchisor’s costs. |
| Local Marketing and/or Cooperative | 4% of the preceding month’s generated gross revenue. |
| Key Account Programs | Will vary under circumstances and may be determined based on number of participating franchisees or other factors. |
| Territory Infringement Fee | First violation: $1,000 plus the invoice amount for the services performed. Subsequent violation: $5,000 plus the invoice amount for the services performed. |
| Technology Fees | Franchisees must a fee at the then-current rate for various required products and services, including selection and implementation of software applications. |
| Call Center Fees | None currently. |
| Additional Opening Support Fee | A reasonable fee, up to $500 per day, plus the reasonable travel, meal, and lodging expenses of the franchisor’s opening support personnel. |
| Training Fees – Remedial and Optional Training | $300 per day and franchisees must reimburse the franchisor for the franchisor’s reasonable out of pocket costs. |
| Annual Conference | Determined by the franchisor based on its anticipated costs of the conference. The attendance fee may vary based on the location of the conference, the number of attendees under the franchisee’s registration, the timing of the registration relative to the conference date, and other factors. |
| Non-Attendance Fee | $500 for the first missed annual conference (may also be referred to as an “annual convention”) and then $2,000 for any annual conference missed consecutively thereafter; $1,500 for missing a regional conference (may also be referred to as a “regional convention”). |
| Service Deficiency Fee | The franchisor’s costs. |
| Renewal Fee | $5,000 |
| Transfer Fee | Generally, $3,000 or 3% of sales price, whichever is greater. |
| Transfer Training Fee | Currently $8,000 for up to two individuals. |
| Change of Ownership Fee | Currently, (a) the greater of $500 or the franchisor’s external legal and administrative costs; plus (b) the transfer training fee, if applicable. |
| Procurement of Insurance | Cost of insurance plus reasonable fee of up to 25% of total insurance premium cost. |
| Vendor Review | The franchisor’s reasonable costs, plus the reasonable travel, meal and lodging expenses of its vendor review personnel. |
| Management Fee | Up to $500 per day, plus the franchisor’s costs and overhead. |
| Step In Fee | Up to $500 per day, plus the franchisor’s costs and overhead. |
| Interest | 12% per annum or the maximum rate permitted by applicable law, whichever is less. |
| Late Fee | $100 for second occurrence of payment more than 30 days past due; $200 for third occurrence; $300 for each subsequent occurrence. |
| Insufficient Funds Fee | $50 or the amount the bank charges the franchisor due to the franchisee’s insufficient funds, whichever is greater. |
| Indemnity for Tax Withholding | Amount of any penalties, interest, and expenses the franchisor incurs. |
| Audit Costs | The franchisor’s costs and expenses of conducting audit, including travel and lodging, and penalties if it finds that franchisees have under reported sales by more than 2% or if they failed to submit required reports. |
| Enforcement Costs | The franchisor’s actual costs and expenses. |
| Defense Costs | The franchisor’s actual costs and expenses. |
| Indemnification | The franchisor’s actual costs and expenses. |
| Liquidated Damages | The greater of: (i) two years of royalty fees (calculated as the average royalty fees per payment period in the year preceding the termination of the Franchise Agreement, multiplied by the number of payment periods occurring in a two-year period); or (ii) $50,000. |
| De-Identification Fee | The franchisor’s costs. |
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