Honest Abe Roofing
Honest Abe Roofing offers franchises focusing on roof repair, new installations, and gutter services. Known for reliable roofing solutions, it operates in the construction industry with significant upfront investment requirements.
Honest Abe Roofing franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operations of a new Honest Abe Roofing Franchised Business with a single Territory is between $197,600 and $277,749. This includes $59,500 that must be paid at the time you execute the Franchise Agreement. [p.1]
What is the initial franchise fee?
The initial franchise fee is $59,500 as a lump sum when you sign the Franchise Agreement [p.13]. This fee includes a Designated Area consisting of approximately 100,000 owner-occupied homes [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee starts at 5% of gross sales, but once you open your business for six months, it transitions to a minimum royalty based on the number of territories purchased. For one territory, the minimum is $4,000 per month, increasing by $2,000 for each additional territory. After thirteen months, the minimum increases to $7,000 for the first territory and $3,500 for each additional territory [p.73]. Advertising fees are collected through a Brand Development Fund, with amounts spent on marketing, brand development, and advertising as directed by the franchisor [p.35].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts. However, you have the option to renew the term for two additional seven-year periods if certain conditions are met, as detailed on [p.150].
Can I sell or transfer my franchise, and what does that require?
The franchise agreement permits the franchisor to refuse a transfer of ownership except for good cause. Good cause includes but is not limited to unspecified reasons [p.220]. This isn't specified in the excerpts regarding the exact nature of good cause beyond mentioning it includes but is not limited to certain factors.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement on any grounds available by law [p.224]. Additionally, this is consistent with the franchisee's ability to terminate under state law [p.228 and p.160].
What financial requirements — net worth and liquid capital — do I need to qualify?
You must satisfy the franchisor’s then-current financial requirements, which include an analysis of your net worth, debt-to-equity ratios, and capitalization. You are required to deliver certified financial statements for the preceding fiscal year, prepared by a Certified Public Accountant, along with supporting documentation as requested. [p.114]
Do I get an exclusive or protected territory?
Yes, you will have an exclusive territory as long as you are not in breach of your Franchise Agreement. This exclusivity does not depend on achieving a specific sales volume or market penetration [p.39]. However, if you default beyond any applicable cure period, the franchisor may revoke this exclusivity and place another franchisee in your designated area [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training as part of the Initial Franchise Fee [p.21], which includes both online and in-person components totaling approximately 95 hours before opening [p.32]. This training covers various operational aspects such as installing roofs, dealing with homeowners, using estimating software, and managing staff [p.32]. Additionally, on-the-job training of about 72 hours will be provided immediately after the franchise opens [p.33]. For ongoing support, if extra management or staff training is needed, a fee may apply for additional training sessions held at their offices [p.21].
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?
Yes, the franchisor shares financial performance information. According to [p.51], the franchisor can provide actual or potential financial performance of its outlets if there is a reasonable basis for the information and it complies with certain conditions specified by the FTC's Franchise Rule. The franchisor also provides unaudited historical gross sales information for some franchisee-owned outlets, as detailed in [p.52].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all products and services which are part of their System, as detailed on [p.45]. This includes any products and services they incorporate into their System in the future. You may need prior written approval to sell additional products or services not authorized by the System. Regarding supplies, you might have to buy or lease items from the franchisor or a limited group of suppliers they designate, which could be more expensive than other options ([p.4]).