The Designery
The Designery offers franchises in kitchen, bath, and closet design and installation services. Known for proprietary marks and comprehensive support, it operates in the home improvement and renovation sector.
The Designery franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the initial Franchised Business under the Multi-Unit Addendum is not explicitly stated as a single figure. However, it includes all items outlined in Chart 7(A) of this Item except for the $59,900 Initial Franchise Fee, which is waived upon full payment of the Multi-Unit Fee. [p.39]
What is the initial franchise fee?
The initial franchise fee is $59,900 for a territory of up to 80,000 Qualified Households. If your territory has more than 80,000 Qualified Households, the Initial Franchise Fee increases by $0.70 for each additional Qualified Household, with a maximum increase to $73,900 pending approval. [p.15]
What are the ongoing royalty and advertising fees?
The ongoing fees include a monthly royalty fee, which is at least 5% but no more than 7% of Gross Revenue, and an advertising fund contribution. These fees can be adjusted by up to 3% in total if new Approved Products or Services are introduced, with the increase split between the Royalty Fee and Brand Fund Contribution [p.31]. Additionally, there are ongoing costs such as bookkeeping fees, Call Center Fees, and local advertising expenses that are part of this estimate [p.38].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a provision permits the franchisor to refuse to permit a transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which can be withheld even if there seems to be no valid reason [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.213]. Additionally, the franchise agreement may allow the franchisor to change its manuals and business model without the franchisee's consent, which could require additional investments or harm the franchise business [p.3], but this does not explicitly state that such changes are grounds for termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on the net worth or liquid capital required for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.54]. You will have protected rights within a Designated Territory, but this territory is not guaranteed to be exclusive from other franchisees or company-owned outlets [p.54, p.272, p.55].
What training and ongoing support does the franchisor provide?
The franchisor provides a tuition-free initial training program at their corporate headquarters or another designated location. This lasts approximately 5 days and is required for the franchisee and up to two additional representatives designated by the franchisee. The franchisor may also offer limited training on the system and brand standards to key employees, but does not provide general business or operations training to employees or independent contractors except for Designated Managers. For ongoing support, vendors might offer optional maintenance, updating, or support contracts at an estimated cost of $200 to $400 per year, though the franchisor has no contractual obligation to maintain, repair, update, or upgrade the franchisee's computerized system. [p.54, p.116]
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 can provide financial performance information if there is a reasonable basis for it and it is included in the disclosure document [p.69]. However, the franchisor does not make any financial performance representations other than those specified in Item 19 of the FDD, nor do they authorize their employees or representatives to make such representations [p.75].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering for sale only the products and services prescribed by the franchisor. You may not offer any other products or services without prior written authorization [p.59]. For supplies, you may have to purchase from suppliers designated by the franchisor, which could be more expensive than buying elsewhere [p.3].