Criterium Engineers Franchise Sales, Costs & Profits (2024)

Criterium Engineers was founded in 1957 and has established itself as a leading consulting engineering firm in North America, specializing in building evaluations and engineering services. The firm is headquartered in Freeport, Maine. While the exact date when Criterium Engineers started franchising is not explicitly mentioned, the company operates with a franchise model, indicating a part of its growth strategy involves franchising.

They offer a wide range of services, including structural, civil, and mechanical engineering, project management, diagnostics, due diligence, commissioning, and evaluation of HVAC systems, among others. Criterium Engineers has evaluated more than 850,000 buildings across the U.S. and Canada and is known for its comprehensive understanding of various types of buildings, from residential homes to large commercial and institutional facilities.

Number of locations

Here’s how many franchised and company-owned Criterium Engineers there have been in the United States over the past few years.

Initial investment

Here’s what you can expect to spend to start a Criterium Engineers franchise.

Type of Expenditure	Amount
Initial Franchise Fee	$49,500 to $79,500
Rent and Related Real Estate Charges	$1,000 to $9,000
Utility and Office Security Deposits	$100 to $3,500
Other Pre-paid Expenses and Licenses	$150 to $975
Leasehold Improvements, Fixtures and Equipment	$500 to $5,350
Insurance	$3,180 to $3,660
Training	$0 to $500
Pre-opening Advertising	$500 to $1,500
Printing	$500 to $500
Opening Inventory Supplies	$500 to $1,000
Legal and Professional Fees	$2,050 to $3,800
Additional Funds for First 6 Months	$12,000 to $25,900
Vehicle	$0 to $3,000
Total	$69,980 to $138,185

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.

Initial Franchise Fee

The initial franchise fee is based on the territory’s population, ranging from $49,500 to $79,500. This fee covers development and maintenance of unique consulting engineering business techniques and the CRITERIUM® trademark.

Royalty Fee (Service Fee)

The royalty fee, referred to as the Service Fee, is tiered based on annual receipts:

• 6% for up to $300,000
• 5.5% for up to $600,000
• 5% for up to $1,000,000
• 4.5% for up to $1,500,000
• 4% for up to $2,000,000
• Flat rate of $5,000 per month for above $2,000,000

Advertising Fee (Marketing Fee)

The advertising fee, or Marketing Fee, is the greater of $50.00 per month or 1% of monthly Gross Receipts.

Technology Fee

An annual Technology Fee of $2,800 is charged, billed monthly. This fee covers web hosting, report writing software, and other business operation tools.

Transfer Fees

Transfer fees are 15% of the then-current initial franchise fee if the seller provides one year of transition/training support; 25% if no support is provided.

Profits

Here’s how much revenue and profits you can expect to make with a Criterium Engineers franchise, as indicated by the franchisor.

How to apply

Opening a Criterium Engineers franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Criterium Engineers franchise.

1: Understanding the Franchise

• Review the Franchise Disclosure Document and all accompanying agreements carefully.
• Understand the consulting engineering service business that specializes in providing reports, inspections, consultation, investigation, and litigation support services.
• Be aware that the total investment necessary to begin operation ranges from $69,980 to $138,185, which includes the Franchise Fee.

2: Initial Financial Commitment

• Be prepared to pay a Franchise Fee ranging from $49,500 to $79,500.
• Consider the option to develop multiple CRITERIUM ENGINEERS Franchises in a Designated Development Area, with a corresponding Area Development Fee.

3: Site Selection and Approval

• Select a location for your business office, subject to CRITERIUM ENGINEERS’ approval.
• Ensure the office meets minimal specifications for design and appearance as described in the Confidential Operating Manual.
• Begin operating from an approved office facility within 120 days from the date of the Franchise Agreement.

4: Compliance with Professional Standards

• Ensure compliance with state laws requiring qualification and licensing as a professional engineer or architect, if applicable.
• Be aware that most Franchisees will have the requisite professional licenses upon purchasing the franchise.

5: Training and Support

• Attend and successfully complete the initial training program supervised by CRITERIUM ENGINEERS’ staff.
• Participate in ongoing support, training, and development programs as deemed necessary by CRITERIUM ENGINEERS.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.