Do you want to open a solar installation business by buying Solar Universe franchise? If YES, here is how much it cost to open a Solar Universe franchise successfully. If you are looking towards opening a Solar Universe Franchise, it will be nice for you to have a of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Currently, Solar Universe has 32 franchise locations in 11 states, with the main concentration being located in California. Solar Universe is a unique solar installation and finance concept that enables homeowners and businesses to produce power at their home or office. In short, Solar Universe makes solar an easy, affordable and fun experience. Entrepreneur Magazine ranks Solar Universe the #1 franchise in its category and one of the 50 best new franchise concepts.
With 32 offices in 11 states, Solar Universe is the nation’s leader in solar, one of the fastest growing industries with 109 percent compound growth in 2011. Solar Universe has a comprehensive business plan and support that allows individuals and independent solar companies to have speed to market and instant credibility with customers from day one. In 2011, Solar Universe was ranked number 1 in its category by Entrepreneur magazine.
Dusty Ansley, VP of Franchise Development for Solar Universe, has been in the franchise industry for 8+ years and has consulted for 80+ franchisors, helping set up sales departments, support departments, marketing, FDDs, state filings, etc. Solar Universe works with the potential franchisees to review the demographics in a given area. The ideal area is one that has utility bills of at least $100 per month and customers that have a credit rating above 680.
Financial Investment Required to Open a Solar Universe Franchise
The estimated investment required to open a Solar Universe Franchise is between $118,500 and $319,000. There is an initial franchise fee of $25,000 to $150,000 which grants you the license to run a business under the Solar Universe name. Here are areas where you are expected to spend money and the cost associated with it;
1. Initial Franchise Fee: $25,000-$150,000
Please note that the current initial franchise fee is $25,000-$150,000. The initial franchise fee for a location developed under a Development Agreement after the first location is one-half of the current initial franchise fee.
2. Total Estimated Initial Investment Under the Franchise Program: $118,500-$319,000
Please note that the franchisor relied on its experience from opening a location in the past and its experience in the solar business to compile these estimates.
3. Royalties: 4% of Gross Revenues
(Due Date: On Monday each week, on revenues generated during the week that ended nine days earlier.). “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. POS Hardware and Software: Depends upon vendor and products purchased
(Due Date: Depends upon vendor and products purchased.)
5. Attorneys’ Fees and Costs: Will vary under circumstances.
(Due Date: As incurred.). Payable to Solar Universe 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 Solar Universe is required to defend your unsuccessful claim against it.
Please note that this includes legal fees incurred at the trial level and appellate levels.
- 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.
- Taxes: Amount required to reimburse Solar Universe for certain taxes imposed on payments to it and the Due Date for this fee On demand.
- Liquid capital required – $200,000
- Net worth required – $350,000
- Investment – $101,000 – $306,500
- Franchise fee – $25,000