Ideal Siding Franchise Costs $69K – $105K (+ 2024 Profits)
Established in 2018, Ideal Siding is a top player in the North American siding industry. It began offering franchises in 2020, aiming to provide homeowners across the United States and Canada with reliable, affordable, and professional siding services. The company uses insights from industry research to ensure its business model works well in different market conditions.
Based in Burnaby, BC, Ideal Siding is known for using modern, easy-to-maintain composite materials. This approach helps meet the growing demand in a siding market worth $60 billion and growing by about 4% each year in the U.S. and Canada. By choosing these materials, the franchise appeals to customers looking for style and value, setting itself apart from competitors.
Ideal Siding’s business model is designed to work well in both strong and weak markets. It promotes quick growth for franchisees by keeping all generated leads within the network and focusing on strong marketing strategies. The company also prioritizes ongoing training and support, ensuring that franchisees operate efficiently and keep customer satisfaction high.
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Roofing / Siding Company Financial Model
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Initial investment
Here’s what you can expect to spend to start a Ideal Siding franchise.
| Type of Fee | Amount |
|---|---|
| Initial Franchise Fee | $50,000 |
| Pre-opening Branding and Promotion | $2,000 – $5,000 |
| Initial Training Program | $0 – $2,000 |
| Initial Inventory | $500 – $3,000 |
| Legal and Accounting | $3,000 – $5,000 |
| Utility Deposits | $0 – $500 |
| Rent/Leasehold Improvement | $0 – $1,300 |
| Local Franchisee Marketing | $5,000 |
| Insurance | $1,000 – $6,000 |
| Vehicle | $0 – $10,000 |
| Computers and Related Peripherals/Equipment | $500 – $3,000 |
| Licenses and Permits | $500 – $2,000 |
| Additional Funds: 3-6 Months | $6,000 – $12,000 |
| Total Estimated Initial Investment | $69,000 – $105,000 |
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 $50,000, which the franchisor fully earns upon signing the franchise agreement and is non-refundable under most circumstances.
Royalty Fee
The Royalty Fee varies based on gross sales, starting at 8% for the first six months. After reaching sales milestones, it adjusts to 7% for sales over $1,000,000, 6% for sales over $2,000,000, and 5% for sales over $3,000,000. This fee is due on the 15th and 30th of each month.
General Branding Fund Fee
This fee, set at 1% of Gross Sales, aligns with the Royalty Fee schedule and supports national advertising and marketing initiatives.
Lead Fee
Calculated as the greater of $2,000 per month or 5% of Gross Sales, this fee is also due alongside the Royalty Fee.
Administration Fee
Franchisees must pay a $250 fee on the 15th and 30th of each month for administrative costs associated with the Lead Management Center.
License Costs
These are assessed monthly by the franchisor for any third-party licensing fees required for franchise operations.
Optional Additional Training
Additional training is available, with costs ranging from $500 to $2,000, due prior to attendance.
Transfer Fee
A fee of $7,500 is charged for transfers to an existing franchise partner and $15,000 for transfers to new franchisees, payable upon transfer approval.
Interest
Interest on overdue fees is calculated at 2% per month (26.82% per annum) or the maximum rate allowed by law, due upon demand.
Investing in a franchise?
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Roofing / Siding Company Financial Model
Investing in a franchise?
Get a professional business plan and financial model for your franchise.
How to apply
Opening a Ideal Siding 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 Ideal Siding franchise.
1. Research Ideal Siding and the Market
- Investigate Ideal Siding’s business model, services, and market reputation.
- Analyze the local market to understand the demand for siding services and the competitive landscape.
2. Review the Franchise Disclosure Document (FDD)
- Carefully read the Franchise Disclosure Document provided by Ideal Siding.
- Understand your rights, obligations, fees, and the support provided by the franchisor.
- Consult with a franchise attorney to clarify any legal terms or obligations.
3. Secure Financing
- Estimate the total investment required, including franchise fees, equipment, and working capital.
- Explore financing options such as bank loans, private investors, or franchisor financing programs.
- Prepare a solid business plan to present to potential lenders or investors.
4. Choose a Suitable Location
- Identify a strategic location that aligns with Ideal Siding’s business model and target market.
- Consider factors like demographics, traffic patterns, and proximity to suppliers.
5. Complete Franchise Training
- Participate in all training programs offered by Ideal Siding.
- Focus on learning installation techniques, customer service, and business management skills.
- Utilize ongoing support and training materials to continually improve operations.
6. Obtain Necessary Licenses and Permits
- Research local regulations and requirements for operating a siding business.
- Apply for any necessary business licenses or permits.
- Ensure compliance with local zoning laws and building codes.
7. Launch Marketing and Opening Campaigns
- Develop a marketing strategy that incorporates both digital and traditional advertising channels.
- Utilize promotional materials and techniques provided by Ideal Siding.
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.
