Window World Franchise Costs, Fees & FDD

Year Business Began: 1995

Franchising Since: 2011

Headquarters: North Wilkesboro, North Carolina

Estimated Number of Units: 210

Franchise Description: Window World, Inc. is the franchisor. Window World businesses sell, market, and install exterior remodeling products in residential and light commercial settings. The major exterior remodeling products are windows, siding, and entry doors. Franchisees will be required to sell windows and entry doors. If the franchisor’s designated supplier of siding has determined that there is a product that is suitable for sales in the franchisee’s market, they must also sell siding. In addition, the franchisor may allow franchisees to offer residential roofing products and services, provided they meet certain criteria.
Training Overview: New Store Owner Training is offered on an as needed basis, at the franchisor’s corporate headquarters and training center in North Wilkesboro, North Carolina or at an approved training location the franchisor designates. New Store Owner training is mandatory for at least one operating owner or the operations manager. There are no performance criteria to be met to satisfy the franchisor’s attendance requirement other than the franchisee must attend the entire training program. Additionally, the franchisor will provide franchisees with the support of a regional manager for up to 30 hours at the franchised business prior to opening. The franchisor may periodically offer other training programs as it deems appropriate, at its sole discretion. From time to time the franchisor may offer conferences and other training courses relating to its industry and to the conduct of the franchised business, although it is not required to do so.

Territory Granted: Franchisees will receive an exclusive territory, the specifics of which will be defined in the Franchise Agreement. Subject to the franchisor’s reserved rights, the franchisor will not establish and operate, nor license any party to establish and operate, a business selling and installing exterior remodeling products using the trademarks and the Window World franchise system within the territory. There is no minimum territory. Typically the franchisor grants franchisees one county/parish. However, the territory may be smaller than one county/parish based upon population, geographic, demographic, and market factors that the franchisor deems relevant, in its sole discretion.

Obligations and Restrictions: The franchisor requires that franchisees form a limited liability company, corporation or similar entity to operate the franchised business. The franchisor requires franchisees to either appoint one operating owner or an operations manager to be involved in the day-to-day operations and on-site supervision of the franchised business. An operating owner must have at least 10% ownership interest in the business entity. The operating owner will be the designated contact for the franchise. An operations manager is not required to have any ownership interest in the franchised business but may. The operations manager must pass a background check and have at least one year of experience in home improvement industry sales or management. All owners, their spouses, and, as applicable, any non-owner operations manager, must sign our then-current forms of confidentiality, non-compete, and non-solicitation agreements. Under the Franchise Agreement, franchisees may sell only the products and services authorized for their franchise. The authorized products and services may be obtained only from vendors who the franchisor approves. The Franchise Agreement also prohibits franchisees from offering any products and services that are not approved by the franchisor. The franchisor does not currently but has the right in the future to specify maximum prices that can be charged for certain products.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees timely satisfy all conditions for renewal, they may enter into a renewal Franchise Agreement for an additional 10-year term. Franchisees will not have the right to renew their Franchise Agreement for an additional term if their gross unit sales volume of windows for the two years immediately prior to the expiration of the initial term of the Franchise Agreement have not been at least as high as those collected by the 25th percentile of other franchisees in the same market category during the same time period. Franchisees will also be in default of the agreement if they fail to achieve the minimum entry door purchases after the 5th year anniversary of the Franchise Agreement.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any note, lease, or obligation. The franchisor participates in the International Franchise Association’s VetFran Program, which generally provides discounts on initial franchise fees to veterans of the U.S. Armed Forces who otherwise meet the program’s requirements.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$45,000	$45,000
Franchise Agreement and Training Travel Expense	$100	$2,000
Leased Real Property	$7,500	$25,000
Technology	$500	$1,500
Construction/Remodeling	$0	$50,000
Security Equipment	$0	$10,000
Office Furniture	$1,500	$6,000
Office Supplies	$500	$1,000
Supplies for Installing Windows, Siding, and Doors – 3 months	$1,000	$4,000
Supplies for Installing Roofing Products – 3 months	$0	$1,000
Utility Deposit	$100	$500
Utilities	$3,000	$5,000
Lease Deposit	$0	$12,500
Formation of Business Entity/Acquisition of Business License(s)	$1,000	$2,000
Acquisition of any Required State & Local Professional Licenses	$0	$4,000
Monthly Vehicle Payments – 3 months	$0	$3,000
Vehicle Graphics	$0	$2,000
Initial Advertising	$30,000	$30,000
Compensation for Employees and Contractors	$0	$50,000
Insurance	$3,000	$9,000
Legal and Professional Services	$0	$5,000
Exterior Signage	$0	$2,500
Additional Funds – 3 months	$30,000	$60,000
ESTIMATED TOTAL	$123,100	$331,000

 
Other Fees

Type of Fee	Amount
Royalties	Currently ranges between $0.10 and $75 per option or unit, or up to 12% of the cost of the product that the franchisee buys from the vendor.
Local or Regional Cooperative Fees	Currently not collected; No cooperative currently established.
Minimum Local Advertising Amount	7% of the prior calendar year’s annual gross sales.
Sale, Transfer or Assignment Approved by Franchisor	The then-current transfer fee, up to a maximum of the then-current initial franchise fee Currently, $11,250.
Seller Transfer Obligation Deposit	Greater of $10,000 or 1% of the purchase price.
Approval of Alternate Vendor, Product, or Service	The franchisor’s costs to evaluate the proposed alternative.
Technology Fee	Currently, the base fee is $499 per month. Optional and premium services carry additional fees.
Renewal Fee	None.
Fines	Varies. Fines are in addition to any other remedies the franchisor may have under the Franchise Agreement, including default or termination. The amount of the fine will also be determined in accordance with the policies in the manuals.
Interest	Lower of 18% or the maximum interest rate allowed by law.
Audit	Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest (lower of 18% or the maximum rate allowed by law) and late fees (2% of fees due to the franchisor).
Domain Name Fee	The franchisor’s costs to own and renew domain names for the franchised business that exceed $50 per year.
Failure to Maintain Insurance	The franchisor’s actual cost for insurance premiums and a reasonable fee for expenses it incurs.
Late Fees	2% of fees due to the franchisor.
Re-Inspection Costs or Rescheduled Inspection Costs	The franchisor’s costs.
Legal Expenses	The franchisor’s costs.
Indemnification and Hold Harmless	Varies; any and all types of damages, liabilities, losses, costs, and expenses the franchisor incurs as a result of third parties claims or from the franchisee’s ownership and operations of the franchised business.
Attorney’s Fees and Costs	Varies; the franchisor’s costs.
Enforcement Costs	Varies; the franchisor’s costs.
Damages	Varies; amounts the franchisor incurs.
Uncompleted Orders	Varies.
System Modifications	All costs and expenses associated with system modification.
Tax Reimbursement	Taxes the franchisor pays as a result of providing product and services to the franchisee or any tax payments the franchisor makes on the franchisee’s behalf.
Customer Complaint Resolution	The franchisor’s costs
Data Inspections and Reimbursement	Varies.
Additional Training	Currently not imposed.
Business Directory Listings	Actual out-of-pocket costs.
Continued Operation After Expiration	$250 per week, up to the then-current initial franchise fee.
Liquidated Damages for Breach of Confidentiality Agreement	$100,000

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