Budget Blinds Franchise Costs & Fees

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Description

Year Business Began: 1992 Franchising Since: 1994 Headquarters: Irvine, California Estimated Number of Units: 1135 Franchise Description: Budget Blinds, LLC is the franchisor. Budget Blinds’ parent company is Home Franchise Concepts, Inc. The business franchisees conduct under a Budget Blinds franchise is a mobile business for the sale and installation of window coverings, such as shutters, mini blinds, wood blinds, vertical blinds, draperies, pleated shades, cellular shades, roman shades, roller shades and solar shades. Franchisees use a van equipped with signs the franchisor specifies to make sales calls and perform installation work. Training Overview: With the first franchise franchisees buy, the franchisor will train them and one other person without charge at its headquarters in Irvine, California. The training program lasts for 9.5 days. Franchisees or their manager must complete the initial training program to the franchisor’s satisfaction before they begin operating the Franchised Business. Upon reasonable notice and at no charge to franchisees, the franchisor may require franchisees or designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers to be relevant or appropriate to the successful operation of the System. Territory Granted: The franchisor will grant franchisees a protected territory with limited exclusivity, in which the franchisor will not establish a company-operated or franchised business that sells and installs window coverings using the system and marks. The territory will be described by United States Postal Service ZIP Codes in the franchise agreement. Each Territory will begin with a minimum of 30,000 households. Obligations and Restrictions: The franchisor would prefer franchisees who plan to participate actively in the direct operation and daily affairs of the Franchised Business. If franchisees do not operate the Franchised Business themselves, they must employ at least one manager on a full time basis. The manager must complete the initial training program, devote his or her entire time during normal business hours to the management, operation, and development of the Franchised Business, maintain confidentiality of the franchisor’s trade secrets and conform to covenants not to compete. Franchisees may offer and sell in the Franchised Business only goods and services that the franchisor has authorized franchisees to sell. Franchisees do not have to sell all the products and services that the franchisor authorizes, but it is suggested that franchisees do so. Term of Agreement and Renewal: The initial term of the franchise agreement is 10 years, beginning on the date the franchisee is scheduled to start operating. If franchisees meet the conditions and it’s their first term, they may add an additional 10-year term. Financial Assistance: If franchisees meet the franchisor’s credit standards, it will, at the franchisee’s request, provide financing for the Initial Franchise Fee and part of the Territory Fee. Financing is not available if the franchisee receives a discounted Territory Fee under the VetFran program. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $19,950 $19,950 Initial Territory Fee $70,000 $70,000 Additional Territory Fee (if second territory purchased at the same time as the initial territory)$0$60,000 Excess Costs of Training $250 $2,500 Work Vehicle $5,000 $48,000 Computer $1,000 $3,500 Credit Card Terminal $30 $500 Telephone Equipment $60 $120 Auto Insurance $500 $2,400 Commercial General Liability Insurance $500 $2,400 Contractor’s License and Bond $0 $1,500 Additional Tools and Supplies $100 $1,500 Professional Services $750 $3,500 Additional Funds (first 3 months) $12,000 $20,000 ESTIMATED TOTAL $110,140 $235,870 Other Fees Type of Fee Amount Royalty Monthly payment: $300 – months 1-6 $700 – months 7-12 $1,100 – months 13 – 24 $1,500 from then on. Advertising Fee Monthly payment: $1,000 until franchisor has 1500 franchise agreements. $1,500 from then on. Technology Fee Currently $94.50 per month (increases to $119.50 on June 1, 2018) Telephone Fee $45 per month per line. Initial Training First 2 attendees are free. Each additional attendee pays $100 per day. Additional Territory Fee An amount equal to the then-current initial Territory fee if the franchisee buys an Additional Territory at a later time. Encroachment Payment 60% of gross sales (revenue less cost of goods) in another franchisee’s territory. Key Account Commissions and Fees The franchisor negotiates each program individually with the Key Account. Fees for Optional Referral Programs Not yet determined. Transfer Fee The then-applicable transfer fee, currently $5,000 for each Territory transferred. Transfer Lead Referral Fee The then-applicable transfer lead referral fee, currently $15,000, plus all broker fees the franchisor incurs. Renewal Fee $1,000 Late Charges $100 late fee for royalties and advertising fees plus interest at 18% or the maximum legal rate, whichever is less. Insufficient Funds Fee $25 The above information has been compiled from the FDD of Budget Blinds. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Royalty Monthly payment:
$300 – months 1-6
$700 – months 7-12
$1,100 – months 13 – 24
$1,500 from then on.
Advertising Fee Monthly payment: $1,000 until franchisor has 1500 franchise agreements. $1,500 from then on.
Technology Fee Currently $94.50 per month (increases to $119.50 on June 1, 2018)
Telephone Fee $45 per month per line.
Initial Training First 2 attendees are free. Each additional attendee pays $100 per day.
Additional Territory Fee An amount equal to the then-current initial Territory fee if the franchisee buys an Additional Territory at a later time.
Encroachment Payment 60% of gross sales (revenue less cost of goods) in another franchisee’s territory.
Key Account Commissions and Fees The franchisor negotiates each program individually with the Key Account.
Fees for Optional Referral Programs Not yet determined.
Transfer Fee The then-applicable transfer fee, currently $5,000 for each Territory transferred.
Transfer Lead Referral Fee The then-applicable transfer lead referral fee, currently $15,000, plus all broker fees the franchisor incurs.
Renewal Fee $1,000
Late Charges $100 late fee for royalties and advertising fees plus interest at 18% or the maximum legal rate, whichever is less.
Insufficient Funds Fee $25