Budget Blinds Additional Territory Offering
BUDGET BLINDS® offers mobile window covering sales and installation services. Known for convenient on-site solutions, it operates in the retail home improvement sector.
Budget Blinds Additional Territory Offering franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a BUDGET BLINDS ® franchise ranges from $100,500 to $211,250. This includes an initial franchise fee ranging from $49,950 to $91,450 [p.1].
What is the initial franchise fee?
The initial franchise fee for a first franchise with the company is $19,950 when you sign the franchise agreement [p.14]. This fee is fixed, nonrefundable, and due at the time the agreement is entered into [p.200].
What are the ongoing royalty and advertising fees?
Ongoing royalty and advertising fees include both variable royalties based on a percentage of sales generated by the franchisee, and fixed rate royalties which are flat fees due monthly as determined in the franchise agreement. These fees are uniformly imposed according to [p.20]. Variable royalties are recognized as revenue when related sales are earned, while fixed rate royalties provide continued access to the brand's intellectual property and proprietary processes, with their total contract value calculated and recognized straight-line across the franchise agreement term ([p.200]).
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD provides details on what happens if a renewal franchise agreement isn't executed before the expiration of the Initial Term [p.105], but it doesn't specify the length of the initial term or the conditions for renewal.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires good cause as determined by the franchisor [p.5]. Additionally, renewal and transfer fees apply when you renew a franchise agreement or transfer all or part of your territory [p.200].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated on [p.77]. Additionally, the franchisor has the right to terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame, which cannot exceed 30 days, as detailed in [p.5(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. However, it recommends having $100,000 in working capital for the first year of operation [p.25].
Do I get an exclusive or protected territory?
Yes, you will receive a protected territory. During the term of the Franchise Agreement, the company will not establish another franchised business in your Territory that sells and installs window coverings using their System and Marks (p.[39]). However, they cannot guarantee that other franchisees will not breach the agreement and operate in your Territory (p.[39]).
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program for the franchisee and up to one employee at no additional charge [p.24]. This training includes transportation, meals, and lodging costs in excess of $1,000, for which a $1,000 travel voucher is provided [p.24]. Ongoing support functions such as treasury, accounting, legal, IT, human resources, and insurance are centralized by the franchisor to its wholly-owned subsidiaries [p.194].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance representations, but only if there is a reasonable basis for this information and it is included in the disclosure document [p.47]. Additionally, if purchasing an existing outlet, the franchisor might provide actual records of that outlet's performance [p.50]. However, the franchisor does not make any financial performance representations other than those specified in the FDD, nor do they authorize their employees or representatives to make such representations [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the products and services that the franchisor has approved in writing as specified in the Confidential Operations Manual. You must purchase window coverings and all components thereof, along with any other specific products required by the Manual, exclusively from the franchisor, their affiliates, or approved suppliers [p.25]. This includes using local vendors for marketing materials only if they have been sourced from the franchisor or an approved supplier [p.3].