Gatsby Glass
Gatsby Glass offers franchises in commercial and residential glass installation services. Known for comprehensive product ranges, it operates in the competitive home improvement sector.
Gatsby Glass franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Gatsby Glass business ranges from approximately $201,383 to $258,968. This includes fees that must be paid prior to opening and covers costs such as the Initial Inventory Package and Opening Package [p.1, p.30-31, p.34].
What is the initial franchise fee?
The initial franchise fee is $59,500 when you sign the Franchise Agreement. This fee includes a Protected Territory of approximately 200,000 in total general population [p.16].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is recognized as revenue ratably over a 12-month period [p.278]. Additionally, franchisees may be required to contribute up to 3% of their monthly Gross Revenues Collected to the Brand Fund, with this contribution not exceeding the previous Royalty fee percentage [p.25]. The franchisor reserves the right to modify these fees and advertising requirements upon providing reasonable notice [p.25].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is generally ten years [p.266]. The ability to renew the franchise depends on the terms specified in the agreement; however, this isn't specified in the provided excerpts regarding renewal conditions or procedures.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you generally cannot transfer ownership of your franchise without the franchisor's approval, except for good cause [p.6]. Good cause includes but is not limited to specific reasons determined by the franchisor. Additionally, any transfer must comply with applicable state and federal laws governing the offer and sale of franchises [p.153].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.209, p.243]. Additionally, termination can occur due to a breach of contract by the franchisee or the insolvency of the franchisee [p.252, p.217, p.266, p.279].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. Your protected territory is limited, meaning that other franchisees, company-owned outlets, or competitive brands controlled by the franchisor can operate within your Protected Territory [p.66, p.312]. However, the franchisor will not establish another Gatsby Glass business utilizing the Proprietary Marks and System within your Protected Territory [p.66].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of Phase I, II, and III trainings, which may be conducted at their facility or via webinar/video-conferencing. Phase I and II occur digitally, while Phase III is held at their Omaha, Nebraska facility. Additionally, the franchisor offers optional ongoing training and continuing education that can be elected but are not required. These additional trainings also require payment of a fee [p.46]. The system includes proprietary operating standards, specifications for products and services, sales techniques, marketing programs, initial and ongoing training programs, and an operations manual [p.113].
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, HPB Glass LLC, does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. [p.92] Additionally, they do not authorize their employees or representatives to provide such information either orally or in writing. [p.92] However, the franchisor may supplement the information provided in Item 19 under certain conditions. [p.88]
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the products and services prescribed by the franchisor. You cannot sell any other products or services without prior written authorization [p.73]. For supplies, you may have to purchase from a limited group of suppliers designated by the franchisor, which could be more expensive than buying on your own [p.3].