Mighty Dog Roofing
Mighty Dog Roofing offers roofing services to commercial and residential customers through franchised locations. Known for reliable roof installations, repairs, and maintenance, this franchise operates in the construction industry.
Mighty Dog Roofing franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Mighty Dog Roofing business ranges from $173,672 to $225,816, which includes $84,995 in fees that must be paid to the franchisor or its affiliates prior to opening. [p.1]
What is the initial franchise fee?
The initial franchise fee is due at signing and varies based on the number of territories covered under the franchise agreement. Revenue from these fees is recognized ratably over the franchise agreement term, typically ten years. [p.280, p.267]
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are considered variable considerations under the franchise agreements [p.292, p.267]. These fees are recorded as revenue and recognized as these services are delivered because they relate specifically to the performance obligation of using the license [p.292, p.267].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement term is generally ten years [p.292]. The FDD does not specify whether you can renew the agreement or provide details on the renewal process.
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit a transfer of ownership of the franchise except for good cause, which includes but is not limited to specific reasons. This means you cannot freely sell or transfer your franchise without the franchisor's approval. [p.6]
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.213, p.245]. Additionally, termination can occur due to a breach of contract by the franchisee or the insolvency of the franchisee [p.221, p.253, p.267, p.280].
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. You may face competition from other franchisees, Mighty Dog Roofing outlets owned by the company, or other channels of distribution or competitive brands controlled by the company [p.69]. The company retains the right to engage in activities using their marks or other trademarks within your protected territory through various alternate channels of distribution without providing you exclusive rights [p.71].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program consisting of Phase I, II, and III training, which includes digital or webinar/video-conferencing sessions as well as in-person training at their facility. This initial training covers proprietary standards for products and services, sales techniques, marketing, and advertising programs. Additionally, the franchisor may offer additional or refresher training and continuing education from time to time, though these are not required. [p.142, p.49]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The FDD does not provide specific numbers regarding the total number of franchised outlets or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor, MDR United LLC, does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. [p.92] However, they may provide financial performance information if there is a reasonable basis and it is included in the disclosure document. [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.43]. 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].