Do you want to open a non profit business by buying Locals Love Us franchise? If YES, here is how much it cost to open Locals Love Us franchise successfully. If you are looking towards opening a Locals Love Us 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 the franchise in your location.
Locals Love Us was founded in 2005 and they began franchising in 2014, about 6 years ago. The current CEO is Nathan Schock and they have their corporate head office at 221 S. Phillips Ave, #201 Sioux Falls, SD 57104. Presently, the company operates 7 franchises in the United States.
Locals Love Us is a group of people who believe that there is a lot to love in every community, but that it’s not always easy to find. Our world of constant negative news and online attacks can cause us to lose sight of what we really love. They sift through the noise, discover what the locals love and then let everyone know about it. They call it sharing the love. They launched as The Local Best in 2005 and started expanding in 2011 as Locals Love Us.
Financial Investment Required to Open Locals Love Us Franchise
Please note that Locals Love Us has the franchise fee of up to $19,500, with total initial investment range of $51,410 – $81,143. Here are areas where you are expected to spend money and the cost associated with it;
1. Initial Franchise Investment: $51,410 – $81,143
2. Franchise Fee: $19,500
3. Royalty Fee: 9 percent of Gross Sales
And the 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.
4. 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 Locals Love Us 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 Locals Love Us 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 Locals Love Us 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 Locals Love Us is required to defend your unsuccessful claim against it.
- Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Locals Love Us offers in-house financing to cover only franchise fee.
- Initial Investment: $51,410 – $81,143
- Net-worth Requirement: $75,000 – $100,000
- Liquid Cash Requirement: $30,000 – $50,000
- Ongoing Fees Initial Franchise Fee: $19,500 – $19,500
- Ongoing Royalty Fee: 9%
- Ad Royalty Fee: 1%
- Total Investment: $85,750 – $122,138