Coverall Franchise Cost & Fees

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Description

Year Business Began: 1985Franchising Since: 1985Headquarters: Deerfield Beach, FloridaEstimated Number of Units: 8,575Franchise Description: Coverall North America, Inc. is the franchisor. Franchisees will operate a commercial janitorial cleaning business utilizing the franchisor’s health-based cleaning system program. The franchisor offers and sells three types of franchises in the commercial janitorial cleaning industry. The three types of franchises are Janitorial Franchises, Service Franchises, also called Master Franchises, and Territory Franchises.Training Overview: The Coverall’s initial training program is mandatory for the person(s) who signs the Franchise Agreement or any designees approved by the franchisor in writing, and for transferees of the franchise. The employees of the franchisee, as approved by Coverall, may also attend training, pursuant to the franchisee’s request. The training program is conducted at one of Coverall’s Support Centers or other designated facility and/or onsite at Coverall System customer facilities, usually within commuting distance of the franchisee’s residence. The 40+ hour training program consists of classroom and on-site instruction on, among other things, cleaning techniques, customer service, and business management basics. It may take up to 8 weeks to complete the training program. The franchisee’s participation in non-mandatory additional training and seminars is strongly recommended. In addition, the franchisee may request additional instruction by telephone or personal consultation at no additional cost.Territory Granted: Due to the nature of the franchised business, franchisees will not receive an exclusive territory or exclusive territory rights. Franchisees may face competition from other Coverall franchisees. Coverall is not able to state the exact number of miles that the franchisee may have to travel to a customer. However, in the ordinary course of business, Coverall endeavors to offer the franchisee customers no more than a 30 mile radius from the franchised business.Obligations and Restrictions: The franchisor does not require that the franchisee personally supervise the business, but strongly recommends that the franchisee directly participate in its management, supervision, and operation. The operating manager/supervisor, if any, is not required to have an equity interest in the business, but should satisfactorily complete the training program. Franchisees may offer and render janitorial services to commercial customers only within the area(s) in which the Coverall Support Center, through which franchisees have purchased the franchise, conducts business. Franchisees must provide all services and products Coverall prescribes. In keeping with Coverall standards, franchisees may not provide unauthorized services or products.Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If franchisees wish to renew and have satisfied the contractual conditions for renewal, they must sign the then-current Janitorial Franchise Agreement. This new agreement may have materially different terms and conditions from the agreement that governed the original term.Financial Assistance: Below is summary of financial assistance offered by Coverall to franchisees: Item Financed (Source) Amount Financed Down Payment Term Initial Franchise Fee (Coverall) $9,500 – $18,063.36 $4,000 – $22,256.64 1 year to 30 months, dependent upon the franchise package Equipment Purchases (Coverall) Up to 100% 0 % up to 100% Up to 24 months Additional Business (Coverall) Negotiable; Up to 50% Negotiable; Up to 50% Up to 12 months Bid and Negotiation Fee Up to 100% 0% up to 100% Up to 12 months Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $13,500 $40,320 Initial Equipment and Supply Package $920 $2,275 Banking, Business License, Corporate Filings, and Permits $175 $475 Office Supplies and Equipment $0 $100 Apparel $0 $100 Misc. Pre-Opening Costs $0 $200 Additional Funds (4 months) $314 $3,400 General Liability Insurance (monthly) $116 $351 Franchise Owner On the Job Accident Insurance 2.4% of monthly Gross Dollar Volume for the first shareholder or member owner, plus $15.00 per month for each additional shareholder or member owner Automobile Insurance $1,200 $3,000 Worker’s Compensation Insurance $11.88 – $22.52 per $100 of payroll dollars incurred by the franchised business Vehicle $225 $900 ESTIMATED TOTAL $16,498 $51,361 Other Fees Type of Fee Amount Royalty 5% of Gross Dollar Volume. Support Fee 10% of Gross Dollar Volume.  Initial Equipment and Supply Package $920 – $2,275 General Liability Insurance $116- $351 monthly Coverall Accident Insurance Program 2.4% of Gross Dollar Volume for the first shareholder or member owner, plus $15.00 per month for each additional shareholder or member owner. Non-Conviction Janitorial Fidelity Bond or Alternative Non-Conviction Janitorial Fidelity Bond $5.95 or $11.45 Electronic Fund Transfer Fee $9.95 National Account Customer Retention Percentage, or another portion, determined at the time the customer is accepted or serviced. Operating Advance Fee Up to 10% of the amount advanced. Special Services Finder’s Fee A one-time fee per service of 20% of total Special Services contract price. Sales and Marketing Fee for Additional Business The sales and marketing fee will be the then-current Multiplier published and revised from time to time in the Franchised Business Policies and Procedures Manual. The current Multiplier is 3.6 times one month’s Gross Dollar Volume for the Additional Business. The multiplier may not exceed 5.0. Bid and Negotiation Fee A one-time fee as published and revised from time to time in the Franchise Owner Policies and Procedures Manual. Franchise Transfer Fee A one-time fee as published and revised from time to time in the Franchise Owner Policies and Procedures Manual. Customer or Business Owed Administrative Transfer Fee 10% of the customer Regular Service Volume, not to exceed $500, or 10% of the dollar amount of Business Owed, not to exceed $500, will be assessed to cover administrative costs if customers or Business Owed are transferred. Audit Fee Cost of the Audit, will vary. Liquidated Damages $500 per day. Attorneys’ Fees and Costs Will vary. Indemnification Will vary. Franchise Application Fee $85 False Documentation/Information Fee Up to $200 The above information has been compiled from the FDD of Coverall. Year of FDD: 2018Franchise Direct’s Disclaimer