If you are looking towards opening a Furniture Medic Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening their franchise in your location.
Furniture Medic was founded in 1992 and they began franchising in 1992, about 28 years ago. The current CEO is Aster Angagaw and they have their corporate head office at 150 Peabody Pl. Memphis, TN 38103-3720, USA. As of the 2018 Franchise Disclosure Document, there are 227 franchised Furniture Medic locations in the USA. Furniture Medic has franchise locations in 44 states. The largest region is the South with 89 franchise locations.
Furniture Medic Limited Partnership is the franchisor. ServiceMaster Global Holdings, Inc. is the ultimate parent company. The franchisor sells a furniture and wood restoration, repair and refinishing franchise service business that performs residential and commercial furniture repair, restoration, and refinishing; wood repair, restoration and refinishing; millwork cabinet re-facing and refinishing, re-upholstery, hardwood floor repair and other related services. These franchised services may be marketed to hotels, homeowners, moving companies, antique dealers, furniture rental companies, insurance companies and others whose responsibilities include residential and commercial property management and maintenance.
Here are areas where you are expected to spend money and the cost associated with it;
Initial Investment Range
$81,000 to $90,000
The larger of $250 per month or 7% gross sales, except that the $250 minimum does not apply to new franchisees for the first 90 days after completion of initial training.
National Advertising Fund
The greater of $150 per month or 2% of gross sales, except that the $250 minimum does not apply to new franchisees for the first 90 days after completion of initial training. 2% of national accounts sales.
Training Related Expenses
$1,110 to $4,170
$13,000 to $13,000
- Shipping and Handling Costs plus Sales Tax (if applicable) on Opening Package (estimated cost, depending on franchisee’s location): $2,000 $2,000
- Tablet or Smart Phone: $400 to $1,000
- Basic Operating System Software (per month): $90
- Corrigo Software: Subscription is $45 per month; $4.50 ordering fee
- GoFormz Inspection Software (per month): $10
- Internet Connection (per month): $45 to $150
- Insurance: General Liability and Vehicle (per year): $2,500 to $4,500
- Insurance: Workers’ Compensation Insurance: Cost varies depending on the franchisee’s state and amount of payroll
- Service Vehicle (depending on model): $2,000 to $4,000
- Van Detail Package (plus shipping and handling): $150 to $462
- Decal Installation Fee (estimated): $150 to $200
- Real Estate and Improvements: N/A
- Advertising Fund Contribution: Up to $150 per month
- Initial Marketing: $500 to $1,500
- Additional Funds – 3 months: $25,000
- Audit Expenses: Cost of audit, including travel, lodging and wage expense, reasonable legal and accounting costs plus interest of 1.5% per month on back fees.
- Late Fee: $50 due per delinquent report plus interest on fees or other payments past due.
- Additional Training Fee: For each additional person to attend:
- First 2 weeks of training: $900 or $450 per week, per person attending;
- Third week of post-training: $450 per person;
- Optional training: $50-$1,000
- Ownership Transfer Fee: $7,000;
- Transfer to owner’s adult child who is at least 18 years of age: one-half of normal fee;
- Transfer to spouse of franchise owner: no fee
- Lead Fee: $10,000
- Other Agreement Changes: Add/Delete/Change: $200 owner name (other than spouse of franchise owner); business entity name; business structure (after first year of term of initial agreement).
- $200 – removing owner(s) or adding an owner(s) at renewal time. However, if the original owner(s) fall below 50% ownership of the franchised business, it is a transfer, and the transfer fee is due.
- $200 business d/b/a name.
- Renewal Fee: Currently $2,000 per franchise agreement. If more than one agreement is renewed at the same time, the renewal fee per agreement is $2,000 for the first agreement and $1,500 for each additional agreement.
- Corrigo Software – ordering fee: $4.50 per order.
- Convention Fee: Currently, $1,000.
- QFR Job Lead Fee: $42 per job through 800-RESPOND.
- QFR Re-Instatement Fee: $100.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Furniture Medic if it is held liable for claims arising out of your franchise operations.
- 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 Furniture Medic 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 Furniture Medic is required to defend your unsuccessful claim against it.
- Veteran Incentives: $1,500 for training fee
- Term of Agreement and Renewal: The initial franchise term is five years from effective date of the agreement. If franchisees have substantially complied with the agreement and maintained the franchised business in accordance with system standards, they may renew their agreement for an additional consecutive five-year term.
- Financial Assistance: The franchisor does not offer direct financing. The franchisor’s affiliate, ServiceMaster Acceptance Company Limited Partnership (SMAC), does offer financing for up to 80% of the initial franchise fee and opening package for up to a seven-year period. Franchisees may choose another lender or finance company.
- Initial Investment: $81,000 – $90,000
- Net-worth Requirement: $100,000
- Liquid Cash Requirement: $30,000
- Ongoing Initial Franchise Fee: $33,000
- Ongoing Royalty Fee: 7%
- Ad Royalty Fee: 2%
If You are in Opening a Furniture Medic franchise, Here is How to Go About It
- Ensure you have adequate capitalization.
In order to open the Furniture Medic repair and restoration franchise, you must have a net-worth of $100,000.
- Appreciate the investment required for a restaurant franchise.
You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
- Evaluate your prior experience and strengths.
You should thoroughly evaluate your prior business experience before applying to become a Furniture Medic repair franchise owner.
- Assess market availability.
You will want to look at the market availability for Furniture Medic franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
- Submit your application.
Your application will be reviewed by the Furniture Medic franchise team. You will be emailed a confirmation receipt upon reception of your online application, where they will additionally provide the contact details of the franchise owner.
- Receive approval & open your Furniture Medic franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
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