ShelfGenie Franchise Prices, Charges, Revenues, Earnings (2023 Evaluation)

On this unique Franchise Chatter FDD Speak publish, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a ShelfGenie franchise, based mostly on Merchandise 7 of the corporate’s 2023 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising payment for a ShelfGenie franchise, based mostly on Gadgets 5 and 6 of the corporate’s 2023 FDD

Part III – Variety of franchised and company-owned ShelfGenie shops at the beginning of the 12 months and the tip of the 12 months for 2020, 2021, and 2022, based mostly on Merchandise 20 of the corporate’s 2023 FDD

Part IV – Information updates on the ShelfGenie franchise alternative

Part V – Presentation and evaluation of ShelfGenie’s monetary efficiency representations (common revenues and/or income), based mostly on Merchandise 19 of the corporate’s 2023 FDD, together with data on the:

• 2022 common, median, excessive, and low product sales per order for the 43 ShelfGenie franchisees, working 232 franchised companies every with a territory of roughly 125,000 households and open throughout the 2022 Reporting Interval (January 1, 2022 by means of December 31, 2022), that had orders that weren’t excluded orders

• 2022 share of appointments leading to a closed order for the 43 ShelfGenie franchisees, working 232 franchised territories (consisting of roughly 125,000 households every) and open throughout the 2022 Reporting Interval, that had orders that weren’t excluded orders

• 2022 common product sales, price of products bought, gross margin, and annual rebates for the 43 ShelfGenie franchisees, working 232 franchised territories (consisting of roughly 125,000 households every) and open throughout the 2022 Reporting Interval, that had orders that weren’t excluded orders

Part VI – Key ratios, comparables, computations, and analyses for the ShelfGenie franchise alternative (unique content material for Platinum subscribers)

Part I – ShelfGenie Franchise Prices

• Preliminary Franchise Price:  $69,500 + $200 per 1,000 further households over 250,000 as much as a complete of 375,000 households
• Leasehold Enhancements:  $0 to $1,000
• Autos:  $0 to $1,500
• Furnishings, House Present Show, and Fixtures:  $0 to $20,000
• Know-how and Workplace Tools; Provides:  $1,500 to $3,000
• Insurance coverage:  $2,000 to $4,500
• Promoting & Promotional and Native Advertising and marketing Spending for First Three Months:  $3,200 to $9,600
• Coaching, Journey, Lodging, and Meals:  $1,000 to $3,500
• Enterprise Licenses and Permits:   $100 to $1,000
• Skilled Charges:  $0 to $5,000
• Further Funds for 3 Months:  $5,000 to $15,000
• Complete Estimated ShelfGenie Franchise Prices:  $82,300 to $133,600 (plus any further franchise payment)

Part II – ShelfGenie’s Preliminary Franchise Price, Royalty Price, and Advertising and marketing Price

• Preliminary Franchise Price:  Government Franchise – $69,500; Proprietor/Operator Franchise – $29,500
  

• License Price:  Government Franchise – the better of $400 per 30 days per Territory (minimal license payment) or 5%-7% of Gross Gross sales (relying on the Enterprise’ annual Gross Gross sales for the present calendar 12 months); Proprietor/Operator Franchise – the better of $200 per 30 days (minimal license payment) or 5%-7% of Gross Gross sales (relying on the Enterprise’ annual Gross Gross sales for the present calendar 12 months)

• Advertising and marketing, Promoting, and Promotion (MAP) Fund Price:  2% of Gross Gross sales, along with Minimal Native Advertising and marketing Spending

• Native Advertising and marketing Teams (LMGs):  to not exceed 3% of Gross Gross sales. Your contribution to the LMG will depend in the direction of any required Minimal Native Advertising and marketing Spending however any required Minimal Native Advertising and marketing Spending won’t symbolize a restrict in your LMG contributions.

• Minimal Native Advertising and marketing Spending:  Government Franchise: the better of $3,200 or 15% of Gross Gross sales per 30 days per Territory; Proprietor/Operator Franchise: the better of $1,600 or 15% of Gross Gross sales per 30 days

Part III – Variety of Franchised and Firm-Owned ShelfGenie Retailers

Franchised

2020

• Retailers on the Begin of the Yr:  143
• Retailers on the Finish of the Yr:  178
• Web Change:  +35

2021

• Retailers on the Begin of the Yr:  178
• Retailers on the Finish of the Yr:  227
• Web Change:  +49

2022

• Retailers on the Begin of the Yr:  227
• Retailers on the Finish of the Yr:  227
• Web Change:  0

Firm-Owned

2020

• Retailers on the Begin of the Yr:  21
• Retailers on the Finish of the Yr:  18
• Web Change:  -3

2021

• Retailers on the Begin of the Yr:  18
• Retailers on the Finish of the Yr:  16
• Web Change:  -2

2022

• Retailers on the Begin of the Yr:  16
• Retailers on the Finish of the Yr:  13
• Web Change:  -3

Part IV – Information Updates on the ShelfGenie Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the ShelfGenie Franchise (Merchandise 19, 2023 FDD)

• As of December 31, 2022, there have been a complete of 227 ShelfGenie franchised companies. Such whole of 227 franchised companies consisted of 37 franchised companies with roughly 250,000 family territories and 190 franchised companies with roughly 125,000 family territories.

• For functions of consistency, ShelfGenie has reported the variety of companies for functions of this Merchandise 19 such that every of the 37 franchised companies (with 250,000-household territories) had been handled as two companies (every enterprise with a 125,000-household territory), leading to a complete of 264 franchised companies every with a territory of roughly 125,000 households.

• Of those 264 companies, 232 companies (the “Reporting Companies”) had been open throughout the reporting interval of January 1, 2022 by means of December 31, 2022 (the “Reporting Interval”). Excluded from this Merchandise 19 are 14 franchisees (working a complete of 18 franchised companies) who didn’t have at the very least one franchised enterprise open for your complete Reporting Interval.

• Companies that closed throughout the Reporting Interval are excluded from the info reported on this Merchandise 19. Fourteen ShelfGenie franchised companies closed throughout 2022. Of the 14 companies that closed, no enterprise closed after being open for lower than 12 months.

• The next tables current data concerning the (a) common and median Gross Gross sales per Order for the Reporting Interval, (b) systemwide share of Appointments Leading to a Closed Order for the Reporting Interval, and (c) the common product sales, price of products bought, gross sales per territory, gross margin, and annual rebate quantity for every franchisee (by market) for the Reporting Interval.

• The next tables additionally embrace the variety of ShelfGenie companies (i.e., 125,000-household territories) owned by these franchisees included within the information for every relevant chart; nonetheless, the common and median Gross Gross sales per Order quantities and the systemwide Share of Appointments Leading to a Closed Order embrace Gross Gross sales, orders, and appointments from adjoining territories operated by the franchisees the place the franchisee doesn’t personal the territory however has the correct to supply and supply providers within the further territory beneath an “Out of Space” Modification to its Franchise Settlement (Territory Out there for Sale Modification). Not all franchisees function in further territories beneath a Territory Out there for Sale Modification; nonetheless, people who do, report Gross Gross sales per order and appointment data to ShelfGenie, which is included within the monetary disclosures on this Merchandise 19.

• ShelfGenie obtained the info included in these tables from data offered to it by its franchisees by means of the corporate’s software program program for the Reporting Interval. Neither ShelfGenie nor its impartial licensed public accountants have audited or verified any of the gross sales and different figures reported to it. Franchisees are usually not required to make use of usually accepted accounting rules when reporting these figures.

Half 1 – Common and Median Gross Gross sales Per Order for System Throughout 2022 Reporting Interval

All ShelfGenie Franchisees Working for All of 2022 That Had Orders That Had been Not Excluded Orders

• Variety of Reporting Franchisees:  43
• Variety of ShelfGenie Companies (i.e., 125,000-Family Territories) Owned by Reporting Franchisees:  232
• Excessive Gross Gross sales Per Order:  $5,973
• Common Gross Gross sales Per Order:  $4,767
• Median Gross Gross sales Per Order:  $4,585
• Low Gross Gross sales Per Order:  $3,584

• “Franchisee” refers to a person or entity that’s ShelfGenie’s franchisee that operated at the very least one ShelfGenie Enterprise for the Reporting Interval. A number of of ShelfGenie’s Franchisees personal and function a number of ShelfGenie Companies that are sometimes for territories that share frequent borders in the identical area.

• If a franchisee operates a number of ShelfGenie Companies in the identical metropolitan space (every a “Market”), such franchisee is counted within the definition of Franchisees solely as soon as for such Market, and if a franchisee operates ShelfGenie Companies in a number of Markets, such franchisee is counted within the definition of Franchisee as soon as for every such Market.

• The chart displays Franchisees that had been open for 12 full months all through the Reporting Interval. Nonetheless, for some Franchisees with a number of Companies/territories, a number of the a number of Companies or territories might not have been open for your complete Reporting Interval.

• In calculating the Common Gross Gross sales per Order for the System, ShelfGenie excluded all Excluded Orders. Common Order for the System doesn’t embrace any gross sales taxes that had been collected or paid in reference to the orders.

• “Excluded Orders” refers to orders that had been for buddies or household, charitable occasions, and workers involving a reduction of 80% or extra off the franchisee’s advised retail value and weren’t a real illustration of an precise buyer order. An order having a reduction of 80% or extra off the Franchisee’s advised retail value signifies or suggests (a) the order was a reorder of merchandise, (b) the order was for private or show utilization, and/or (c) the order was not an arms-length gross sales transaction.

• For repeat prospects, every order for a challenge positioned by a buyer is handled as a separate order.

Half 2 – Share of Buyer Appointments That Resulted in a Closed Buyer Order Throughout 2022 Reporting Interval

All Reporting Franchisees for All of 2022 That Had Orders That Had been Not Excluded Orders

• Variety of Reporting Franchisees:  43
• Variety of ShelfGenie Territories (Consisting of Roughly 125,000 Households Every):  232
• Complete Variety of Appointments for the System (not together with Excluded Orders):  16,271
• Complete Variety of Closed Orders for the System Ensuing from Appointments (not together with Excluded Orders):  8,703
• Share of Appointments Leading to a Closed Order (not together with Excluded Orders):  53.5%

• An “Appointment” is seen as an preliminary assembly at a buyer’s dwelling or enterprise the place the work shall be carried out.

• A “Closed Order” is an order the place a Franchisee reported a sale to a buyer. A Closed Order might contain a couple of assembly with the identical buyer to shut the sale.

• Within the occasion of a brand new order by a buyer, the brand new order is handled as a further Closed Order with a further Appointment.

Half 3 – 2022 Franchisee Common Gross Gross sales, Price of Items Offered, Gross Margin, and Annual Rebate Quantity

• Included within the chart beneath is information for the Reporting Interval for 43 Franchisees who owned and operated a complete of 232 ShelfGenie Companies throughout the Reporting Interval.

• If a franchisee operates a number of ShelfGenie Companies in the identical metropolitan space (every a “Market”), such franchisee is counted within the definition of Franchisees solely as soon as for such Market, and if a franchisee operates ShelfGenie Companies in a number of Markets, such franchisee is counted within the definition of Franchisee as soon as for every such Market.

• Variety of Reporting Franchisees:  43
• Variety of ShelfGenie Territories (Consisting of Roughly 125,000 Households Every):  232
• Common Gross Gross sales:  $957,236
• Common Gross Gross sales Per Territory:  $177,419
• Common Price of Items Offered:  $280,523
• Common Gross Margin:  70.7%
• Common Annual Rebates:  $11,737

• Price of Items Offered (“COGS”) means the price of the Core Merchandise (e.g., shelving, cupboards, and so forth.) bought by the franchisee to the client in addition to freight prices.

• COGS doesn’t embrace (i) miscellaneous objects like clips, spacers, and different provides which may be obligatory to put in the Core Merchandise, (ii) insurance coverage, delivery, freight, and supply expenses for the Core Merchandise, and (iii) any gross sales tax, use tax, or different taxes which may be due in reference to franchisee purchases of Core Merchandise.

• COGS doesn’t embrace any further manufacturing rebates that Manufacturing might have provided throughout the Reporting Interval.

• The time period “Gross Gross sales” contains the full revenues and receipts from no matter supply (whether or not within the type of money, credit score, settlement to pay, barter, commerce, or different consideration) that come up, immediately or not directly, from the operation of or in reference to a ShelfGenie enterprise whether or not beneath any of the Marks or in any other case.

• Gross Gross sales exclude gross sales taxes collected from prospects and paid to the suitable taxing authority and every other bona fide refunds, rebates, or reductions that ShelfGenie authorizes in writing. Gross Gross sales additionally exclude gross sales from any Excluded Providers (as outlined in a mutually executed Excluded Providers Addendum).

• “Gross Gross sales Per Territory” had been calculated by taking the full Gross Gross sales quantity for the relevant Market (as outlined within the above desk) and dividing the quantity by the variety of territories included within the Market.

• “Gross Margin” is the proportion, expressed as a share, that every Franchisee’s whole Gross Gross sales, excluding COGS, represents in relation to every Franchisee’s whole Gross Gross sales earlier than deducting COGS.

• The Rebate quantities included within the above chart are rebates that Franchisees obtained throughout the Reporting Interval from Manufacturing, based mostly on purchases the Franchisees constituted of Manufacturing. Rebates start solely after a Franchisee meets a minimal quarterly buy threshold, imposed per franchised enterprise.

• Every territory for functions of the above desk contains roughly 125,000 homes or households. The desk is damaged up by Market (outlined above) (or portion thereof if a number of Franchisees function inside a single Market), such that there could also be some Franchisees represented greater than as soon as in the event that they function in a number of separate Markets.

• Some have bought this quantity. Your particular person outcomes might differ. There isn’t a assurance that you just’ll earn as a lot.

Part VI – ShelfGenie Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️