If you are looking towards opening a Tailored Living® 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.
Tailored Living® was founded in 2006 and they began franchising in 2006, about 14 years ago. Scott Barrett is the present CEO of the company and they have their corporate head office at 19000 MacArthur Blvd., #100 Irvine, CA 92612, USA. The company owns and operates a total of 193 that is 164 franchises in the United States and 29 outside the country.
Tailored Living® is a member of a family of brands under the umbrella of Home Franchise Concepts® (HFC), parent company and franchisor of home improvement service companies that include Budget Blinds® and Concrete Craft®. As a franchising expert, HFC is dedicated to helping people go into business for themselves and to help them grow their home-based franchise business to be as successful as possible.
Tailored Living proudly offers homeowners high-quality organization and storage solutions for their garages, closets, pantries, family rooms, home offices and more, through complimentary in-home consultations. The company also provides complete design, measuring and installation services adapted to each client’s specific needs.
Tailored Living’s industry experience, commitment to service, and wide breath of product offerings has allowed it to grow into the largest whole-home organization company with nearly 200 franchise territories serving more than 2,000 cities throughout the United States and Canada.
Here are areas where you are expected to spend money and the cost associated with it;
Initial Franchise Investment
$156,930 to $297,295.
Please note that the total cost to open a Tailored Living® club ranges from $156,930 to $297,295 depending on the size of the space. You will need minimum liquid assets of $150,000 and a net worth of $129,950 either individually or cumulatively amongst a group of investors to obtain necessary bank financing.
$300-$2K per month 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.
- 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 Tailored Living® 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 Tailored Living® 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 Tailored Living® 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 Tailored Living® is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10 percent off franchise and territory fees
- 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: Tailored Living LLC offers in-house financing to cover franchise fee. Tailored Living LLC has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll. Please note that Tailored Living also provides financing of up to $30,000 to qualified candidates. Third-party lenders available.
- Initial investments: $156,930 – $297,295
- Net-worth Requirement: $150,000
- Liquid Cash Requirement: $129,950
- Ongoing Initial Franchise Fee: $14,950
- Ongoing Royalty Fee: $300-$2K/mo.
- Ad Royalty Fee: $500-$1.25K/mo.