If you are looking towards opening a Business Incentive Solutions Franchise, it will be nice for you to have a preview of what the company represents before going ahead to inquire about the total cost of opening their franchise in your location. Business Incentive Solutions was founded in 2010 and they began franchising in 2012, about 8 years ago. They have their corporate head office at 303 Vintage Park Dr., #130 Foster City, CA 94404, USA. There are 135 franchised Business Incentive Solutions locations in the USA.
Business Incentive Solutions is a consulting firm specializing in niche areas credit services and profit recovery. Since 2004, Business Incentive Solutions has helped businesses across a range of industries realize millions of dollars in savings from available business incentive programs.
Cutting costs and increasing profits are critical to every business, especially during difficult economic times. However, even when times are good, your company cannot afford to overlook opportunities to improve the bottom line with incentives, grants, and other economic development programs offered through federal, state and local programs.
Business Incentive Solutions is focused on assisting companies in obtaining maximum value from incentives and profit recovery programs. Their integrated suite of consulting services is designed to facilitate a wide range of lucrative programs for your company.
Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Business Incentive Solutions Franchise
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Initial Investment Range: $34,850 – $70,300
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Franchise Fee: $20,000
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Royalty Fee: Varies under different conditions
Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third – party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two – thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Business Incentive Solutions and its affiliates are also members of their respective local Cooperative and each company – owned Center has the same voting rights as the franchised locations within the Cooperative. If the company – owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred. Please note that you must reimburse Business Incentive Solutions if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out – of – pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Business Incentive Solutions if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Business Incentive Solutions is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Business Incentive Solutions has relationships with third – party sources which offer financing to cover the following: franchise fee, startup costs, and equipment et al.
In Summary,
- Initial Investment: $34,850 – $70,300
- Net-worth Requirement: $50,000
- Liquid Cash Requirement: $10,000
- Ongoing Initial Franchise Fee: $20,000 – $20,000
- Ongoing Royalty Fee: Varies
- Ad Royalty Fee: 2%