ShelfGenie Franchise Costs, Fees & FDD

Year Business Began: 2000

Franchising Since: 2008

Headquarters: Waco, Texas

Estimated Number of Units: 315

Franchise Description: The franchisor is ShelfGenie SPV LLC. Franchisees operate a business that designs and installs customized solutions for new and existing cabinets, pantries, closets, garages and other structures identified by the trade name and service mark “ShelfGenie.” The executive franchise model is the standard franchise offer. The owner/operator franchise model is tailored for more sparsely populated areas. To operate an executive franchise, franchisees will be required to simultaneously sign two Franchise Agreements. If the territory size places the franchise purchased in the owner/operator franchise category, franchisees will sign one franchise agreement and the data sheet in the Franchise Agreement.
Training Overview: The training requirements may vary depending on the franchisee’s experience and other factors specific to the business. The franchisor or its affiliate will provide training for up to two individuals per business, one of whom must be the manager. Training begins with eight hours of remote training done online through ShelfGenie University. This online training must be completed prior to attending in-person training which will most likely take place at ShelfGenie’s corporate headquarters (although the training may be conducted virtually). The franchisor, however, reserves the right to designate an alternate location for training. The training lasts for up to six days. In addition, if franchisees hire an installer, such person must separately complete Installer Training, which is a two-day training course conducted at the training facility (currently in Waco, TX). At the franchisor’s option, it may provide additional training programs or seminars or advanced management training at locations designated by the franchisor, which franchisees, their employees and/or their manager may be required to attend. These additional training programs will not be required for more than five days each year. The franchisor may require franchisees to attend, at their expense, up to two national business meetings or annual conventions per year for up to three days per meeting or conference.

Territory Granted: Franchisees will receive the right to operate a ShelfGenie business within a designated territory, as specified in the Franchise Agreement, that will provide limited territory protection. Under the executive franchise model, franchisees must purchase at least two contiguous territories, with each territory having approximately 125,000 households, and each territory being granted under a separate Franchise Agreement. Each territory under the owner/operator franchise model consists of approximately between 75,000 to 150,000 houses or households, and up to 200,000 houses or households. Provided franchisees are and have been for the preceding 6 months) in full compliance with the Franchise Agreement, and each other agreement between the franchisor and the franchisee or any of the franchisor’s affiliates, the franchisor will not operate or grant a franchise for the operation of another ShelfGenie franchise with rights to market within the territory during the term of the Franchise Agreement.

Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the business unless the franchisor consents otherwise. If the franchisee is a corporation or other legal entity, direct, on-site supervision must be done by a designated owner who has successfully completed the training program unless the franchisor consents otherwise. While franchisees own the business, they cannot have an interest or relationship with any competitors. Franchisees must offer and sell only the goods and services that conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that the franchisor designates as required for all franchisees and they may elect to offer other products and/or services only if the franchisor approves them in advance.

Term of Agreement and Renewal: The initial franchise term is five years. The Franchise Agreement can be renewed for one additional five-year term by executing the then-current form of franchise agreement and meeting the other requirements for renewal.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The franchisor may periodically agree with third-party lenders to make financing available to qualified franchisees and it may, in its sole discretion, refer franchisees to a third-party lender for financing. The franchisor does not guarantee a franchisee’s obligations to third parties. If franchisees are a United States or Canadian honorably discharged veteran (as such term is defined by the franchisor in its sole discretion) who meets the qualifications for purchasing a franchise, the franchisor will discount the initial franchise fee for their first business by 20%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$69,500 + $240 per 1,000 additional households over 250,000 up to a total of 375,000 households
Leasehold Improvements	$0	$1,000
Vehicles	$0	$1,500
Furniture, Home Show Display, and Fixtures	$10,000	$30,000
Technology and Office Equipment; Supplies	$2,250	$5,000
Insurance	$2,000	$7,000
Advertising & Promotional and Local Marketing Spending (for first three months)	$1,600	$9,600
Training, Travel, Lodging & Food	$1,000	$3,500
Business Licenses and Permits	$100	$1,000
Professional Fees	$350	$5,000
Additional Funds (3 months)	$3,000	$15,000
ESTIMATED TOTAL (does not include real estate costs)	$55,300	$148,100 (+ any additional franchise fee)

 
Other Fees

Type of Fee	Amount
License Fee	Executive Franchise – The greater of $400 per month per territory (minimum license fee) or 5%-7% of gross sales (depending on the business’ annual gross sales for the current calendar year). Owner/Operator Franchise – the greater of $200 per month (minimum license fee) or 5% - 7% of gross sales (depending on the business’ annual gross sales for the current calendar year).
Marketing, Advertising and Promotion Fund (MAP) Fee	2% of gross sales, in addition to minimum local marketing spending.
Local Marketing Groups	Not to exceed 3% of gross sales.
Minimum Local Marketing Spending	(i) $3,000 per month for the first territory, (ii) $1,750 for each of the 2nd, 3rd and 4th territory, and (iii) $1,500 for the 5th and each subsequent territory.
Business Management Software Monthly Fees	Currently, $300 per month per business.
Technology Package	Varies depending on software.
Late Fees (business management software fees and technology package fees, if/when applicable)	$25 per month or the maximum amount allowed under the law, whichever is less.
Call Center Program Fees	Current fees: $349.99/month - $449.99/month (depending on the third-party vendor NCS is able to use) plus $25 per booked appointment.
Annual Convention (Reunion) Fees	Currently $1,000 or less per person attending, per convention.
Transfer Fee	The greater of (i) $7,500 or (ii) 5% of the sales price, per business.
Late Fees	$10 per day.
Dishonored Check or ACH Draft	$50
Interest	12% on unpaid balances.
Failure to Maintain Insurance	The franchisor’s actual cost for insurance premiums and a reasonable fee for expenses it incurs.
Audit	Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees.
Audit Noncompliance Fee	$500 per document (up to $2,500 per audit) that franchisees fail to timely make available to the franchisor in connection with an audit; and/or: cost of audit, if audit is rescheduled due to the franchisee’s failure to cooperate with the audit.
Renewal Fee	The greater of $5,000 or $1,750 per territory for executive franchise; $5,000 for owner/operator franchise.
Amendment Fee	$300
Unapproved Suppliers	The franchisor’s actual out-of-pocket costs of inspection or testing.
Indemnification and Attorneys’ Fees and Costs	Varies according to loss.
Tax Reimbursement	Varies according to tax.
Specialized Training	Out-of-pocket expenses, plus the then-current fees for the specialized training.
Additional Training Fee	The then-current fee, currently up to $5,000.
Key Accounts/ Management Fee	Up to 5% of total gross sales related to key account work, including gross sales that relate to key accounts.

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