iFoam Franchise Prices, Charges, Revenues, Income (2022 Evaluation)

On this unique Franchise Chatter FDD Discuss submit, you’ll be taught the next:

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

Part II – Preliminary franchise payment, royalty payment, and advertising payment for an iFoam franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned iFoam shops at the beginning of the 12 months and the tip of the 12 months for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the iFoam franchise alternative

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

• fiscal 12 months 2021 gross income, price of products offered (supplies and labor), bills, and EBITDA for the 2 iFoam shops working in territories in Alabama and Tennessee for all the interval from November 1, 2020, by means of October 31, 2021 (the “Measurement Interval”)

• fiscal 12 months 2021 common job ticket, shut ratio, variety of crews, gross sales supervisor annual compensation, lead technician annual compensation, prep assistant annual compensation, and variety of jobs achieved by the 2 iFoam shops working in territories in Alabama and Tennessee for all the Measurement Interval

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

Part I – iFoam Franchise Prices

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

• Preliminary Price:  $59,500
• Insurance coverage (90 days):  $3,000 to $5,000
• Tuition Price:  $4,995
• Journey and Residing Bills Whereas Coaching:  $1,500 to $3,500
• Opening Package deal:  $28,255 to $38,255
• Preliminary Stock Package deal:  $0 to $125,000
• Transport:  $0 to $5,000
• Automobiles:  $76,047 to $380,235
• Licenses, Certificates, and Permits:  $0 to $2,500
• Skilled Charges:  $2,800 to $5,300
• Expertise Price:  $9,500
• Name Heart Price:  $3,600
• Dues and Subscriptions:  $0 to $1,000
• Lease and Utilities (3 months):  $4,500 to $12,500
• Leasehold Enhancements:  $0 to $15,000
• Native Model Optimization Price (first 12 months):  $12,000
• Inventive Media Fund Price:  $5,000
• Grand Opening Promoting Requirement Expense:  $10,000
• Digital Administration Price (3 months):  $1,500
• Nationwide Allow Database Price (3 months):  $297
• Extra Funds:  $20,000 to $40,000
• Complete Estimated iFoam Franchise Prices:  $242,494 to $739,682

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

• iFoam’s preliminary franchise payment, royalty payment, and advertising payment, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Price:  $59,500
• Royalty Price:  the larger of: (i) 8.5% of Gross Revenues Collected; or (ii) the Minimal Royalty Price (starting from $817 to $1,308 per week for 1 territory, relying on variety of months in operation)
• Model Fund Contribution:  if and when established, iFoam’s then-current Model Fund Contribution quantity, which shall not exceed 3% of weekly Gross Revenues Collected
• Native Promoting Requirement:  5% of month-to-month Gross Revenues Collected

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

Franchised

2019

• Retailers on the Begin of the 12 months:  4*
• Retailers on the Finish of the 12 months:  4
• Web Change:  0

*Two of those shops are owned and operated by Jonathan Roll, iFoam’s founder and director of operations.

2020

• Retailers on the Begin of the 12 months:  4
• Retailers on the Finish of the 12 months:  4
• Web Change:  0

2021

• Retailers on the Begin of the 12 months:  4
• Retailers on the Finish of the 12 months:  4
• Web Change:  0

Firm-Owned

2019

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

2020

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

2021

• Retailers on the Begin of the 12 months:  0
• Retailers on the Finish of the 12 months:  0
• Web Change:  0

Part IV – Information Updates on the iFoam Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the iFoam Franchise (Merchandise 19, 2022 FDD)

• An iFoam Enterprise will supply “Spray Foam Insulation Companies” to residential and business clients inside an outlined protected territory on a year-round foundation.

• On November 15, 2021, the franchisor bought sure property of iFOAM Franchise Group LLC and I-Foam LLC, together with rights in two current franchise agreements for 2 shops (the “Retailers”) working in territories in Alabama and Tennessee.

• One of many Retailers is owned and operated by iFoam’s founder and director of operations, Jonathan Roll. These Retailers function beneath the principal trademark “iFoam” and supply considerably comparable services because the iFoam Enterprise you’ll function beneath the iFoam trademark.

• This Merchandise units forth historic income and value info for the Retailers which was supplied to iFoam by the homeowners of the Retailers.

• The Retailers have been open for all the interval from November 1, 2020, by means of October 31, 2021 (the “Measurement Interval”).

• Outlet A operates in an space containing roughly 2 territories being provided hereunder with 4 crews. Outlet B operates in an space containing roughly 2 territories being provided hereunder with 1.5 crews.

• Aside from the exclusions of sure prices and bills that you’ll pay beneath the franchise settlement as famous beneath, the Retailers are considerably just like the iFoam Enterprise provided beneath the Disclosure Doc.

• Half 1 units forth every Outlet’s Gross Income, Price of Items Bought, and sure bills of the Retailers in the course of the Measurement Interval.

• Half 2 units forth the Common Job Ticket, Shut Ratio, Variety of Crews, Gross sales Supervisor Annual Compensation, Lead Technician Annual Compensation, Prep Assistant Annual Compensation, and Variety of Jobs achieved in the course of the Measurement Interval.

• iFoam has not audited or independently verified the information submitted by the Retailers and no assurance will be provided that the information doesn’t comprise inaccuracies that an audit would possibly disclose.

Half 1 – Gross Income, Price of Items Bought, and Sure Bills of the Retailers Throughout the Measurement Interval (November 1, 2020, by means of October 31, 2021)

A. Outlet A – Alabama

Outlet Gross Income:  $3,428,794 (100.0%)

Price of Items Bought

• Supplies:  $1,577,849 (46.0%)
• Labor:  $474,200 (13.8%)
• Complete Price of Items Bought:  $2,052,049 (59.8%)

Bills

• Promoting and Promotion:  $127,052 (3.71%)
• Truck Restore, Upkeep, and Gas:  $80,919 (2.36%)
• Lease:  $34,900 (1.02%)
• Working Provides:  $32,418 (0.95%)
• Insurance coverage:  $25,310 (0.74%)
• Repairs and Upkeep:  $23,205 (0.68%)
• Utilities:  $16,967 (0.49%)
• Financial institution Charges and Service provider Companies:  $13,266 (0.39%)
• Workplace Provides:  $5,552 (0.16%)
• Complete Bills:  $359,589 (10.5%)

EBITDA:  $1,017,156 (29.67%)

B. Outlet B – Tennessee

Outlet Gross Income:  $1,149,731 (100.0%)

Price of Items Bought

• Supplies:  $469,070 (40.8%)
• Labor:  $185,476 (16.1%)
• Complete Price of Items Bought:  $654,546 (56.9%)

Bills

• Promoting and Promotion:  $6,714 (0.58%)
• Truck Restore, Upkeep, and Gas:  $14,789 (1.29%)
• Lease:  $13,812 (1.20%)
• Working Provides:  $11,612 (1.01%)
• Insurance coverage:  $4,801 (0.42%)
• Repairs and Upkeep:  $1,195 (0.10%)
• Utilities:  $1,174 (0.10%)
• Financial institution Charges and Service provider Companies:  $6,324 (0.55%)
• Workplace Provides:  $6,224 (0.54%)
• Complete Bills:  $66,645 (5.8%)

EBITDA:  $428,540 (37.27%)

C. Common of Retailers A and B

Outlet Gross Income:  $2,289,262.50 (100.0%)

Price of Items Bought

• Supplies:  $1,023,459.50 (44.7%)
• Labor:  $329,838 (14.4%)
• Complete Price of Items Bought:  $1,353,297.50 (59.1%)

Bills

• Promoting and Promotion:  $66,883 (2.9%)
• Truck Restore, Upkeep, and Gas:  $47,854 (2.1%)
• Lease:  $24,356 (1.1%)
• Working Provides:  $22,015 (1.0%)
• Insurance coverage:  $15,055.50 (0.7%)
• Repairs and Upkeep:  $12,200 (0.5%)
• Utilities:  $9,070.50 (0.4%)
• Financial institution Charges and Service provider Companies:  $9,795 (0.4%)
• Workplace Provides:  $5,888 (0.3%)
• Complete Bills:  $213,117 (9.3%)

EBITDA:  $722,848 (31.6%)

• “Outlet Gross Revenues” is outlined as all revenues generated by the Retailers in providing Authorized Merchandise and Companies in the course of the Measurement Interval.

• “Supplies” is outlined as the price of the supplies used within the provision of the Authorized Merchandise and Companies, and every other comparable merchandise used within the enterprise.

• “Labor” is outlined as all compensation for labor essential to function the enterprise.

• “Complete Price of Items Bought” is outlined because the sum of Supplies and Labor.

• “Promoting and Promotion” consists of any and all the prices related to advertising and promoting.

• “Truck Restore, Upkeep, and Gas” consists of all gas prices and all prices of the restore of autos and trailers, routine upkeep similar to oil adjustments, tire replacements, and brakes. The Retailers operated 5 to six crews in the course of the Measurement Interval.

• “Lease” consists of all prices related to renting a facility to function an workplace and warehouse to retailer the stock, gear, and provides, besides “Utilities” (outlined beneath).

• “Working Provides” consists of all instruments, gear, and upkeep objects required to function the enterprise.

• “Insurance coverage” consists of Enterprise Legal responsibility and Auto Insurance coverage, in addition to Staff’ Compensation and every other sort of insurance coverage.

• “Repairs and Upkeep” consists of prices related to repairs of instruments and gear, warehousing house, and trailers.

• “Utilities” consists of utility prices similar to energy, water, gasoline, trash, and every other utilities that service the rented facility.

• “Financial institution Charges and Service provider Companies” consists of the charges related to the financial institution and service provider service suppliers.

• “Workplace Provides” is outlined as any and all objects essential to run and function the enterprise, similar to pens, paper, notebooks, envelops, folders, tape, glue, markers, and every other associated administrative bills pertaining to workplace provides.

• “Complete Bills” is outlined because the sum of Promoting and Promotion, Truck Restore, Upkeep and Gas, Lease, Working Provides, Insurance coverage, Repairs and Upkeep, Utilities, Financial institution Charges and Service provider Companies, and Workplace Provides. It doesn’t embody the bills famous beneath which you’ll incur as a franchisee.

• “EBITDA” is outlined as Outlet Gross Revenues much less Complete Price of Items Bought and Complete Bills.

• “EBITDA %” is outlined as EBITDA expressed as a proportion of Outlet Gross Revenues.

• The outcomes listed in Half 1 don’t embody all charges and bills that you’ll incur in working an iFoam franchised enterprise. Amongst different charges and bills, you’ll incur the next as an iFoam franchisee, described extra absolutely in Merchandise 6:

• a. Name Heart Price;
• b. Expertise Price;
• c. Royalties and/or Minimal Royalty Charges;
• d. Native Model Optimization Price;
• e. Accounting Companies Price;
• f. Promoting Expense Deficiency;
• g. Digital Administration Price;
• h. Administrative Charges;
• i. Annual Convention Price;
• j. Coaching Charges; and
• ok. Nationwide Allow Database Price

Half 2 – Abstract of Key Efficiency Indicators

Common Job Ticket

• Outlet A:  $7,358
• Outlet B:  $7,418
• Common:  $7,388

Shut Ratio

• Outlet A:  34%
• Outlet B:  46%
• Common:  40%

Variety of Crews

• Outlet A:  4
• Outlet B:  1.5
• Common:  2.75

Gross sales Supervisor Annual Compensation

• Outlet A:  $81,269
• Outlet B:  $67,600
• Common:  $74,434.50

Lead Technician Annual Compensation

• Outlet A:  $54,800
• Outlet B:  $67,600
• Common:  $61,200

Prep Assistant Annual Compensation

• Outlet A:  $36,400
• Outlet B:  $41,600
• Common:  $39,000

Variety of Jobs

• Outlet A:  466
• Outlet B:  155
• Common:  310.50

• “Common Job Ticket” is outlined as the common {dollars} spent per transaction for spray foam insulation jobs carried out on residential properties and new development buildings in the course of the Measurement Interval.

• “Shut Ratio” is outlined as the share of whole estimates written that changed into invoices.

• “Variety of Crews” is outlined because the variety of crews actively putting in spray foam insulation.

• “Gross sales Supervisor Annual Compensation” is outlined as the common whole annual compensation Gross sales Supervisor acquired in 2020 for compensation. This consists of an annual wage and different incentives.

• “Lead Technician Annual Compensation” is outlined as the common whole annual compensation Lead Technician acquired in 2020 for compensation. This consists of an annual wage and different incentives.

• “Prep Assistant Annual Compensation” is outlined as the common whole annual compensation Prep Assistant acquired in 2020 for compensation. This consists of an annual wage and different incentives.

• “Variety of Jobs” is outlined because the variety of residential and new development buildings spray foam insulation installations accomplished in the course of the Measurement Interval.

• This evaluation doesn’t comprise full info in regards to the working prices and bills that you’ll incur in working your iFoam Enterprise. Working prices and bills could range considerably from enterprise to enterprise.

• Along with the objects famous above, the above figures exclude, amongst different prices and bills, payroll, payroll taxes, proprietor compensation/wage, healthcare, worker advantages, uniforms, workplace provides, sure gear prices related to operating your personal crews, postage, journey and leisure bills, late charges, coaching charges, and different charges and bills which you’ll incur as a franchisee.

• The above figures exclude tax liabilities that you’ll be liable for.

• Curiosity expense, curiosity revenue, depreciation, amortization, and different revenue or bills will range considerably from enterprise to enterprise, relying on the quantity and form of financing you get hold of to ascertain your iFoam Enterprise.

• Some shops have earned this quantity. Your particular person outcomes could differ. There isn’t any assurance you’ll earn as a lot.

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