Franchising Since: 2017
Headquarters: Ann Arbor, Michigan
Estimated Number of Units: 40
Franchise Description: The franchisor is PLUMBERZ International, LLC. The franchisor’s parent company is Belfor Franchise Group (BFG). The franchise offered is for the establishment and operation of a business offering residential, commercial, industrial and government/municipal plumbing, sewer and drain services, and cured in place pipe lining services, utilizing the Z PLUMBERZ business system.
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Territory Granted: A standard franchise territory will encompass between 200,000 and 350,000 people. Within the territory, franchisees have the right to advertise, market, solicit and service any customer, except as described in the Franchise Agreement. Franchisees may not advertise, market, solicit or provide services in any way, any customers or customer service locations outside the territory, without the franchisor’s prior written consent. The franchisee’s Z PLUMBERZ business office site, which may be in their home, must be located within the territory, and the franchisor must approve such office site. The territory that has been awarded to franchisees is where the franchisor will not allow another Z PLUMBERZ franchisee or company store to advertise in print or media, primarily directed to persons in the territory. Following their first full year of operation, Z PLUMBERZ franchisees must maintain a minimum level of monthly gross sales.
Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. Except as stated by the franchisor, franchisees must designate at least one managing owner who will be the primary individual contact with the business and who the franchisor will approve in its sole discretion. Before commencing operation of the business, franchisees must employ at least one person who has completed the Business Manager and Technical Operations Training. Before they begin operating the Z PLUMBERZ business, franchisees must also hire one service technician who will be responsible for performing and overseeing the residential, commercial, industrial and government/municipal plumbing, sewer and drain services, and cured in place pipe lining services. Franchisees must offer and provide only and all of the services that the franchisor periodically requires for Z PLUMBERZ franchisees in the manner that it prescribes, and franchisees may only provide the services specified.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional term of 10 years is available if requirements are met.
Financial Assistance: If the franchisor grants the franchisee the right to open and operate a Z PLUMBERZ business for a standard territory, the franchisor may offer the franchisee financing for a portion of the initial franchise fee if the franchisee meets the qualifications. The franchisor provides a 20% discount on the initial franchise fee for the first territory to veterans of U.S. Armed Forces who have been honorably discharged or otherwise meet the requirements of the IFA’s VetFran program.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $44,900 | $44,900 |
| Initial Package Fee | $67,500 | $67,500 |
| Rent | $0 | $6,000 |
| Leasehold Improvements | $0 | $20,000 |
| Exterior Signage | $0 | $3,000 |
| Licenses / Permits | $500 | $5,000 |
| Technology System | $250 | $2,000 |
| Initial Supplies and Inventory | $2,500 | $53,900 |
| Insurance | $2,500 | $10,000 |
| Vehicles | $69,900 | $89,900 |
| Full-time Service Technician | $7,260 | $21,360 |
| Business Telephone Fee | $150 | $1,050 |
| High Speed Internet Anti-Virus Software | $210 | $600 |
| Security Deposits / Utility Deposits | $0 | $2,500 |
| Costs Incurred While Attending Training | $1,000 | $5,000 |
| Grand Opening Advertising and Marketing | $0 | $6,000 |
| Additional Working Capital (three months) | $60,000 | $80,000 |
| ESTIMATED TOTAL (for a standard franchise) | $256,670 | $418,710 |
Other Fees
| Type of Fee | Amount |
| Royalty | 8% of gross sales up to $999,999 per year (beginning the first of the month following 60 days after the launch date; 7% of gross sales up to $1,999,999 per year; 6% of gross sales of more than $2,000,000 per year. |
| Brand Marketing Fee | 2% of gross sales, beginning the first of the month following 60 days after the launch date. |
| Additional Training or Hosting Fee | $25 per person, per day, of any training conducted at the franchisor’s headquarters, or the then-current fee, plus all travel, lodging, and meal expenses. |
| Technology Fee | The then-current fee, which is presently $600 per month, beginning the first of the month following the successful completion of the initial training. |
| Convention, Regional Meetings and/or Additional Training | The then current fee, which is currently (a) $1,000 maximum per person to attend the annual convention, and (b) $0 - $500 per person per event for regional meetings and/or additional training. |
| Transfer Fee | The then-current fee, per territory; presently, this is $9,900 if transferred to a new franchisee, or $3,000 if transferred to a current franchisee. |
| Transfer of Corporation Fee | $500 |
| Broker Fee - Resale | If franchisees authorize the franchisor to enlist a third party broker to locate the transferee, there will also be a broker fee, which is currently $30,000. |
| Outstanding Royalties, Support Fees, and other fees of Transferor | Will vary under circumstances. |
| Renewal Term Fee | 10% of the then-current initial franchise fee. |
| Renovation, Refurbishing, and Remodeling Fees | Actual costs. |
| Late Report Fee | $20 per week that a report is late. |
| Late Payment Fee | 5% of amount due or $50 per week, whichever is greater. |
| Administrative Fee | The then-current fee, which is presently $500 per transaction. |
| Collection Fee | The then-current fee, which is presently up to 35% of gross amounts collected on the franchisee’s behalf. |
| Non-Sufficient Funds (NSF) Fee | The then current fee, which is presently $50 per NSF. |
| Convention Non-Attendance Fee | The then current fee, which is presently $1,000. |
| Non-Compliance Fee | Currently up to $5,000 per violation, or in the case of out-of-territory conduct, a fine of $500 or the cost of the job. |
| Audit | Due only if an inspection is necessary. Cost of inspection or audit estimated at $2,500 - $3,500, plus 100% of understated royalty and interest, at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater, and all late fees, from the date originally due until the date of payment; if an understatement of the royalty is greater than 3%, franchisees also must pay the franchisor an additional penalty fee equal to 10% of the total amount of the understated gross sales. |
| Insurance | Cost of insurance; If the franchisee fails to maintain the required insurance, the franchisor has the right to procure insurance on the franchisee’s behalf and the franchisee must pay the franchisor, on demand, for the costs and premiums the franchisor incurs. |
| Interest Fee | Lesser of 18% per annum or the maximum permitted by law. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Optional Upgrade to RingCentral Premium | $40 |
| NORA Fee | None currently assessed; if the franchisor manages accounts through a national or regional accounts program the franchisee will pay up to 3% of gross sales from NORA jobs. |
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