Franchising Since: 1983
Headquarters: Minneapolis, Minnesota
Estimated Number of Units: 1,590
Franchise Description: The franchisor is Miracle-Ear, Inc. Miracle-Ear franchisees own and operate a hearing aid business using the Miracle-Ear name and associated trademarks. The franchisee will sell a complete line of quality hearing aids manufactured for Miracle-Ear, Inc. together with certain related products and services from its authorized hearing aid centers.
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Territory Granted: Franchisees will receive an “exclusive territory” when granted a Miracle-Ear franchise, and the territory will include zip codes generally associated with one or more counties and will be described in the Franchise Agreement. The precise boundaries of the territory will be determined by county lines or zip codes and will be determined at least seven business days before franchisees sign their Franchise Agreement. Territory size will vary depending on the number of centers the franchisee is approved by Miracle-Ear to operate within the territory. Each approved location will be assigned an associated territory by the franchisor based on the number of target consumers in the area. The population of this “center footprint” area is dependent upon a variety of factors, including but not limited to location urbanization, region of the country, and proximity to existing centers. The franchisor will not establish another franchised or company-owned Miracle-Ear Center in the territory. In exchange for granting franchisees exclusive rights within their territory, they agree to make annual minimum wholesale unit purchases of hearing aids from Miracle-Ear for each center to achieve a minimum penetration of customers sold per target population in the center footprint.
Obligations and Restrictions: If franchisees are an individual or a sole proprietorship, they must directly manage and operate their franchised Miracle-Ear centers. If franchisees are a partnership, one of the general partners must handle the direct management and operation of the franchised business. If franchisees are a limited liability company, a member who owns at least 5% or more of the company’s membership interests must handle the direct management and operation of the franchised business. Franchisees must confine their business in the territory covered by the Franchise Agreement to the operation of the type of facility described in the Franchise Agreement. Franchisees must offer and sell only those goods and services that the franchisor has approved. Franchisees also must offer a full line of all goods and services that the franchisor designates as required uniformly for its franchisees.
Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees (and their affiliates) are in good standing, they can renew the Franchise Agreement for an additional term of the length currently being offered to new franchisees, which will be no less than five and no more than 10 years.
Financial Assistance: The franchisor may, in its sole and absolute discretion, provide financing to qualified franchisees for acquisitions, start-up costs, working capital, relocations, renovations, expansion, and conversions. For new territory acquisitions and new location funding, the franchisor may enter into a promissory note with franchisees for up to 60 months of: (i) up to 100% of the initial franchise fee or (ii) the purchase price to be paid for the assets acquired for the operation of their new center or any additional centers in their new territory (which may include startup costs such as equipment, fixtures, initial inventory and/or supplies). If franchisees are a new Miracle-Ear franchisee experienced with hearing instruments (such as being a licensed hearing aid dispenser) and the franchisor determines that franchisees meet its requirements, it may loan them (i) an amount of up to four months of working capital required to operate their new center, or (ii) an amount to finance all or part of the renovation of existing hearing aid locations to Miracle-Ear centers, all in amounts determined by the franchisor. If franchisees are an existing Miracle-Ear franchisee relocating an existing center or opening a new center and the franchisor determines that they meet requirements, it may provide them with a loan to finance all or part of such relocation or expansion, in amounts determined by the franchisor. If franchisees are an honorably discharged US veteran, they may qualify for a 10% discount off the initial franchise fee. In addition, the Miracle-Ear franchise system has been approved by the Small Business Administration.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $30,000 | $30,000 |
| Prepaid Expenses – Franchise | $500 | $2,500 |
| Prepaid Expenses – By Location | $1,000 | $5,000 |
| Travel And Living Expenses During Training | $2,000 | $5,000 |
| Real Property Build Out Costs | $20,000 | $200,000 |
| Furniture, Fixtures and Equipment | $30,000 | $60,000 |
| Signage | $1,500 | $10,000 |
| Inventory | $5,000 | $10,000 |
| Additional Funds – 3 Months | $30,000 | $80,000 |
| ESTIMATED TOTAL | $120,000 | $402,500 |
Other Fees
| Type of Fee | Amount |
| Royalty | $48.80 for each Miracle-Ear hearing aid. $30.15 for each AudioTone Pro. |
| CRM Program Fee | Varies based on size of customer database. Not to exceed $570 per center per month. |
| Access Fee for Sycle.net Software | $101.41 per month per full-time or part-time location. $40.13 per month per service location which will increase yearly based on CPI, and which may increase more in the future. |
| Local Advertising Expenditures | At least 10% of “net sales.” Includes contributions to NMF and regional cooperative advertising. |
| Regional Cooperative Advertising | The franchisee’s regional advertising council will determine the amount, not to exceed 10% of net sales. |
| National Marketing Fund (NMF) Contribution | $25 or $75 per hearing aid ordered. |
| IHS Membership | $2.00 per hearing aid sold. |
| Miracle-Ear Foundation Donation | $1.00 per hearing aid ordered. |
| Transfer Fee | $5,000 for transfers of a majority or controlling interest; $2,000 for transfers of a minority and non-controlling interest. |
| Maintenance, Refurbishment and Renovation Expenses | Will vary under circumstances. |
| Experience Enhancements | No more than $5,000 per center. |
| Insurance Premiums and Reimbursement | Will vary under circumstances. |
| Late Charges | Lesser of 10% per annum or maximum rate permitted by law. |
| Demo Program | Will vary. Currently, $109 to $149 per demo unit, but will not exceed $149 per demo unit. |
| Optional Services | Will vary per election of services. |
| NOAH License Fee | License fee of $65 per location. |
| Late Renewal Notice Fee | Not to exceed $5,000 per week. |
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