More Space Place
More Space Place offers franchises in home organization solutions like closet systems and garage cabinetry. Known for innovative space-saving products, it operates in the home improvement and organizing industries.
More Space Place franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a More Space Place franchised business is estimated to be between $164,200 and $253,400. This amount includes $83,400 to $111,800 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is payable in full and in a lump sum when you sign the applicable Franchise Agreement. The specific amount depends on the number of territories purchased or franchise agreements signed, as detailed in the agreement [p.73]. This fee is deemed earned upon signing and delivery of the Franchise Agreement by both parties and is nonrefundable under any circumstances [p.11].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee equal to 5% of all weekly Gross Revenues, with a minimum of $125.00 per week [p.73]. Additionally, the franchisor has the right to negotiate higher fees upon renewal of the agreement [p.72]. The NAP contributions are not specified as fixed amounts but are determined by the franchisor's discretion for various advertising and marketing purposes [p.29].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't explicitly stated in these excerpts. However, if you wish to renew the agreement, you must execute Franchisor's then-current form of franchise agreement at the time of renewal, which may include different terms such as higher royalty and advertising fees [p.72].
Can I sell or transfer my franchise, and what does that require?
The franchisor can refuse to permit the transfer of ownership of the franchise except for good cause. Good cause includes but is not limited to unspecified reasons [p.5]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.233]. However, termination provisions must not be enforceable if they do not constitute 'reasonable cause' as defined under Virginia Retail Franchising Act or Virginia laws [p.234]. Good cause for termination includes failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5].
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 does discuss financial obligations such as working capital [p.83] and potential escrow arrangements if the franchisor's own financial statements show a net worth below $100,000 [p.6].
Do I get an exclusive or protected territory?
You will not receive an exclusive territory. However, you are granted a protected territory where the franchisor will not place another More Space Place® franchise location, subject to certain exceptions and minimum population requirements [p.37, p.48].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes sessions at various locations such as New Jersey, Clearwater, Florida, a Corporate Retail Store in North Palm Beach FL, or another location designated by the franchisor. This training is typically completed within 60 days of signing the Franchise Agreement and covers up to three individuals including the franchisee (or its equity owners) and their designated manager. The program may also include virtual training at the franchisor's discretion. Additionally, the franchisor reserves the right to offer optional or mandatory conventions, refresher courses, and supplemental training programs from time to time, for which the franchisee is responsible for personal expenses and any tuition fees. [p.35, p.80, p.194-p.217]
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 does not make any financial performance representations other than the preceding one. They also do not authorize their employees or representatives to make such representations either orally or in writing [p.55]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.55].
What am I restricted to selling, and where must I buy supplies?
You are required to operate the Franchised Business according to the More Space Place System, which may limit you to purchasing certain items such as Murphy Bed and panel bed systems, cabinets, mechanisms, bed frames, mattresses, foundations, hardware, molding, additional wall units, book shelves, desk tops and drawers, closet materials, boards, hardware, drawers, baskets, BIZTRAX software, CAD Design Software Keys, and other specified items from the franchisor or approved suppliers designated by them [p.20]. Additionally, you may only offer or sell products and services that are approved by the franchisor, and must offer certain products and services as designated by them [p.43].