Finest Alternative Roofing Franchise Prices, Charges, Revenues, Earnings (2023 Assessment)

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

Part I – Estimated preliminary funding (franchise prices) for a Finest Alternative Roofing franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise charge, royalty charge, and advertising charge for a Finest Alternative Roofing franchise, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Finest Alternative Roofing retailers firstly of the yr and the top of the yr for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Finest Alternative Roofing franchise alternative

Part V – Presentation and evaluation of Finest Alternative Roofing’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

• 2021 precise, common, and median gross income for the 17 Finest Alternative Roofing Affiliate Places that had been open and working as of December 31, 2020 and working for all the 2021 calendar yr

• 2021 common gross income, price of development, gross revenue, disclosed bills, and gross income much less disclosed working bills, estimated gross sales supervisor base wage and bonuses, and estimated gross income much less disclosed bills – owner-operator for the 17 Finest Alternative Roofing Affiliate Places that had been open and working as of December 31, 2020 and working for all the 2021 calendar yr

• common annual gross income for the ten Finest Alternative Roofing Affiliate Places that had been open and working for two years as of December 31, 2021 throughout their first 12 months of operation (Months 1-12) and second 12 months of operation (Months 13-24)

• 2021 common, median, excessive, and low sub-contractor labor, supplies, and gross revenue margin for the 17 Finest Alternative Roofing Affiliate Places that had been open and working as of December 31, 2020 and working for all the 2021 calendar yr

• 2021 whole jobs, and common, median, excessive, and low ticket value for all Finest Alternative Roofing Affiliate Places that operated in the course of the 2021 calendar yr

• 2018, 2019, 2020, and 2021 affiliate-locations gross income, company outlet gross revenues, and whole gross revenues for all Finest Alternative Roofing Location that operated in the course of the relevant calendar yr

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

Part I – Finest Alternative Roofing Franchise Prices

• Finest Alternative Roofing franchise prices, primarily based on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Franchise Payment:  $59,500
• Journey & Dwelling Bills Whereas Attending Preliminary Coaching:  $1,000 to $2,000
• Hire & Safety Deposit (3 Months):  $3,000 to $7,000
• Leasehold Enhancements:  $0 to $15,000
• Tools:  $0 to $1,000
• Furnishings, Workplace Tools, and Software program:  $3,500 to $9,000
• Automobile:  $0 to $12,500
• Indicators:  $500 to $1,000
• Licenses:  $200 to $3,000
• Grand Opening Advertising and marketing:  $5,000 to $10,000
• Insurance coverage:  $2,500 to $3,500
• Owens Corning Membership:  $2,500
• Skilled Charges (Authorized and Accounting):  $1,000 to $3,000
• Preliminary Advertising and marketing Supplies:  $11,000
• New Rent Kits and Uniforms:  $500 to $3,000
• Further Funds (for First 3 Months):  $20,000 to $50,000
• Complete Estimated Finest Alternative Roofing Franchise Prices:  $110,200 to $193,000

Part II – Finest Alternative Roofing’s Preliminary Franchise Payment, Royalty Payment, and Advertising and marketing Payment

• Finest Alternative Roofing’s preliminary franchise charge, royalty charge, and advertising charge, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Payment:  $59,500
• Royalty:  6% of Gross Gross sales, topic to weekly minimums
• Model Fund Contribution:  as much as 3% of Gross Gross sales; at the moment, 1% of Gross Gross sales
• Market Cooperative Contribution:  as decided by co-op; at the moment, none. Nevertheless, as soon as co-op shaped, not lower than 1% of Gross Gross sales.

Part III – Variety of Franchised and Firm-Owned Finest Alternative Roofing Shops

Franchised

2019

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

2020

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

2021

• Shops on the Begin of the Yr:  0
• Shops on the Finish of the Yr:  0
• Internet Change:  0

Firm-Owned

2019

• Shops on the Begin of the Yr:  21
• Shops on the Finish of the Yr:  23
• Internet Change:  +2

2020

• Shops on the Begin of the Yr:  23
• Shops on the Finish of the Yr:  31
• Internet Change:  +8

2021

• Shops on the Begin of the Yr:  31
• Shops on the Finish of the Yr:  33
• Internet Change:  +2

Part IV – Information Updates on the Finest Alternative Roofing Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Finest Alternative Roofing Franchise (Merchandise 19, 2022 FDD)

Half 1 – 2021 Gross Income from Affiliate Places

• The chart beneath contains the Complete Gross Income earned by every Affiliate Location for the 2021 calendar yr. This chart solely contains the Affiliate Places that had been open and working as of December 31, 2020 and working for all the 2021 calendar yr.

2021 Gross Income

• Affiliate Location 1:  $14,036,128
• Affiliate Location 17:  $5,711,259
• Affiliate Location 10:  $5,594,850
• Affiliate Location 13:  $4,333,734
• Affiliate Location 15:  $4,024,060
• Affiliate Location 8:  $3,957,839
• Affiliate Location 5:  $3,688,483
• Affiliate Location 9:  $3,678,252
• Affiliate Location 14:  $3,230,403
• Affiliate Location 6:  $2,953,429
• Affiliate Location 2:  $2,891,064
• Affiliate Location 11:  $2,539,230
• Affiliate Location 7:  $2,312,335
• Affiliate Location 16:  $1,855,756
• Affiliate Location 3:  $1,760,971
• Affiliate Location 4:  $1,197,628
• Affiliate Location 12:  $881,168
• Common Gross Income:  $3,802,741
• Variety of Places that Met or Exceeded the Common:  6
• Proportion of Places that Met or Exceeded the Common:  35%
• Median Gross Revenues:  $3,230,403

Half 2 – 2021 Common Revenue and Loss Assertion from Affiliate Places

• Every of Finest Alternative Roofing’s Affiliate Places is operated as an govt enterprise mannequin in that the proprietor doesn’t participate within the day-to-day administration of the enterprise. That is opposite to an owner-operator enterprise mannequin wherein the proprietor of the enterprise participates closely within the day by day operations, administration, or advertising of the enterprise. Every of Finest Alternative Roofing’s Affiliate Places employs managers and gross sales representatives.

• Nevertheless, franchisees might function their Finest Alternative Roofing franchise below both of those fashions. Franchisees might have a semi-absentee position with their franchise, using key people to handle the gross sales and operation points of the enterprise. Alternatively, franchisees might run their enterprise as an owner-operator, taking a full-time position inside the enterprise themselves.

• If any of the franchisees function their enterprise as an owner-operator, Finest Alternative Roofing anticipates that (i) their payroll bills and internet revenue could be considerably decrease than the quantities disclosed beneath. Whereas they could save on payroll bills, an owner-operator franchisee will seemingly not scale their enterprise as shortly on account of their very own private capability.

• The chart beneath contains the typical Gross Income, Prices of Development, and sure Disclosed Bills skilled by the 17 Affiliate Places that operated for all the 2021 calendar yr (January 1, 2021 to December 31, 2021). To be included on this chart, every Affiliate Location needed to have been open and working as of December 31, 2020.

• The Affiliate Places don’t pay Royalty Charges or Model Fund Contributions. The common Gross Income achieved by these Affiliate Places would have been topic to the Royalty Payment of 6% of Gross Income and never the minimal Royalty Charges as disclosed in Merchandise 6 of the disclosure doc.

Averages Throughout Affiliate Places

Gross Income:  $3,802,741 (100.0%)

Value of Development

• Supplies (After Rebates from Suppliers):  $1,366,451 (35.9%)
• Sub-Contractor Labor:  $943,685 (24.8%)
• Permits:  $3,975 (0.1%)
• Complete Value of Development:  $2,314,111 (60.9%)

Gross Revenue:  $1,488,630 (39.1%)

Disclosed Bills

• Background Checks:  $1,936 (0.1%)
• Financial institution Expenses & Service provider Charges:  $2,772 (0.1%)
• Commissions:  $342,246 (9.0%)
• Contract Entry:  $16,992 (0.4%)
• CRM & Tech:  $3,600 (0.5%)
• Insurance coverage – Property, Staff Comp, and Legal responsibility:  $18,289 (0.1%)
• Web & Phone:  $4,334 (0.2%)
• Buyer Name Heart:  $7,440 (0.3%)
• Advertising and marketing Supplies:  $13,200 (0.3%)
• Workplace Provides:  $2,600 (0.1%)
• Workplace – Lease:  $26,400 (0.7%)
• Administrative Payroll:  $100,400 (2.6%)
• Quickbooks & Proper Networks Internet hosting:  $4,800 (0.1%)
• Utilities:  $2,114 (0.1%)
• Bonus:  $73,499 (2.0%)
• Complete Disclosed Bills:  $620,622 (16.3%)

Common Gross Income Much less Disclosed Bills:  $868,008 (22.8%)

Estimated Gross sales Supervisor Base Wage & Bonuses:  $83,899 (2.2%)

Estimated Common Gross Income Much less Disclosed Bills – Proprietor-Operator:  $951,907 (25%)

Half 3 – 2021 Common Begin-up Gross Income Throughout First 24 Months of Enterprise

• The chart beneath shows the typical annual Gross Income for the ten Affiliate Places that had been open and working for two years as of December 31, 2021 throughout their first 12 months of operation (Months 1-12) and second 12 months of operation (Months 13-24).

Months 1-12 of Operation

• Common Gross Income:  $2,296,690
• Quantity and % that Met or Exceeded Common:  6 (60%)

Months 13-24 of Operation

• Common Gross Income:  $3,019,271
• Quantity and % that Met or Exceeded Common:  5 (50%)

Half 4 – 2021 Common Gross Revenue Margins

• The charts beneath characterize the 2021 calendar yr averages of Sub-Contractor Labor and Supplies (each comprising Value of Development), and the ensuing Gross Revenue Margins given these prices, for 17 Affiliate Places that had been open for all the 2021 calendar yr.

Sub-Contractor Labor

• Variety of Places:  17
• Low:  22.08%
• Excessive:  42.55%
• Median:  26.88%
• Common:  27.22%
• Quantity and % That Met or Exceeded the Common:  8 (47.37%)

Supplies

• Variety of Places:  17
• Low:  25.37%
• Excessive:  43.97%
• Median:  38.14%
• Common:  38.29%
• Quantity and % That Met or Exceeded the Common:  8 (47.37%)

Gross Revenue Margin

• Variety of Places:  17
• Low:  25.37%
• Excessive:  45.31%
• Median:  34.19%
• Common:  34.49%
• Quantity and % That Met or Exceeded the Common:  8 (47.37%)

Half 5 – 2021 Common Jobs and Ticket Value

• The chart beneath represents the typical value per job (“Ticket Value”) for all Affiliate Places that operated in the course of the 2021 calendar yr (not simply Affiliate Places that operated for all the 2021 calendar yr).

• Through the 2021 calendar yr, the Affiliate Places signed a complete of 6,291 jobs with clients. This contains jobs signed by the three Affiliate Places that opened in the course of the 2021 calendar yr.

• Complete Jobs:  6,291
• Excessive Ticket Value:  $142,318.98
• Low Ticket Value:  $3,009.31
• Common Ticket Value:  $12,005.10
• Median Ticket Value:  $10,383.52
• Quantity and % That Met or Exceeded the Common Ticket Value:  2,424 Jobs (39%)

Half 6 – Yr-Over-Yr System Development

• The beneath chart summarizes the year-over-year progress in income throughout all the Affiliate Places and the Company Outlet throughout all the 2018, 2019, 2020, and 2021 calendar years.

• The “General System Development” is the proportion of progress in Complete Gross Revenues between every relevant yr and the previous yr.

• The “Company Outlet Gross Revenues” represents Gross Income earned by our Company Outlet as disclosed above.

2018

• Affiliate-Places Gross Revenues:  $15,626,418
• Company Outlet Gross Revenues:  $10,432,729
• Complete Gross Revenues:  $26,059,147
• General System Development:  N/A
• Affiliate Places at Yr Finish:  10

2019

• Affiliate-Places Gross Revenues:  $32,011,258
• Company Outlet Gross Revenues:  $16,374,910
• Complete Gross Revenues:  $48,386,168
• General System Development:  85.7%
• Affiliate Places at Yr Finish:  11

2020

• Affiliate-Places Gross Revenues:  $56,561,961
• Company Outlet Gross Revenues:  $31,487,562
• Complete Gross Revenues:  $88,049,523
• General System Development:  82.0%
• Affiliate Places at Yr Finish:  17

2021

• Affiliate-Places Gross Revenues:  $79,205,335
• Company Outlet Gross Revenues:  $34,989,166
• Complete Gross Revenues:  $114,194,501
• General System Development:  29.7%
• Affiliate Places at Yr Finish:  24

• Some retailers have offered this quantity. Your particular person outcomes might differ. There isn’t any assurance you’ll promote as a lot.

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