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Storm Guard Franchise Costs $200K – $237K (+ 2024 Profits)

Founded in 2003, Storm Guard is a roofing and exterior restoration franchise based in Fort Worth, Texas. It started franchising in 2011 and was established to simplify the process of managing insurance claims for property damages. It encourages expansion through franchising to maintain consistent service quality nationwide.

The franchise aims to provide reliable and high-quality services, prioritizing integrity and customer satisfaction. This approach helps Storm Guard stand out in the competitive restoration industry, making it a leader in both residential and commercial sectors.

The company’s franchisees are independently owned, combining local business benefits with the support of a nationally recognized brand. This model ensures excellence in services like roofing, siding, and window installations.

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Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$65,000
Rent Deposits$1,500 to $3,000
Utility Deposits$300 to $600
Leasehold Improvements$0 to $4,000
Insurance Deposits$3,000 to $5,000
Travel and Living Expenses While Training$3,000 to $5,000
Opening Package$36,000 to $47,000
Vehicles$3,600 to $4,500
Licenses, Certificates and Permits$0 to $5,000
Additional Signage, Equipment and Supplies$500 to $1,500
Furniture, Fixtures & Equipment$10,000 to $15,000
Professional Fees$2,500 to $5,000
Dues and Subscriptions$0 to $1,000
Additional Funds (3 months)$75,000
Total Estimated Initial Investment$200,000 to $237,000

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

Initial Franchise Fee

Upon signing a Franchise Agreement, a non-refundable initial franchise fee of $65,000 is required for a Standard Territory.

Royalty Fee

A royalty fee of 6.25% of gross sales, with minimum revenue requirements based on operational year milestones: $1,000,000 in the first year, $1,500,000 in the second, and $2,000,000 from the third year onwards.

Local Advertising and Cooperatives

Monthly advertising spending requirements start at $2,500 in the first year and increase annually, with potential contributions to local advertising cooperatives.

Brand Development Fee

This fee, set at 0.75% of gross sales, is paid into a brand development fund for marketing and advertising initiatives.

Transfer Fee

Fees for transferring the franchise are $12,500 for new franchisees and $2,500 for current franchisees.

Technology Fee and Email Fees

Up to $100 per month for technology services, plus $12 per month per email address, which can increase depending on the service level.

Sales App Fee

A total of $24 per month per user for required sales tracking applications.

Management Fees

In the event of a transition period due to the death or disability of your primary owner, management fees of 5% of gross sales may be charged if the business is managed by the franchisor or its designee.

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How to apply

1. Research the Franchise

  • Understand the basics of the Storm Guard franchise, focusing on its business model, market presence, and reputation.
  • Evaluate how the franchise aligns with your business goals and interests in the home services industry.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully read the FDD provided by Storm Guard to understand the legal and financial obligations.
  • Pay special attention to sections detailing initial and ongoing fees, training and support, and any restrictions or obligations.

3. Secure Financing

  • Assess your financial capacity to meet the initial investment required for starting a franchise.
  • Explore financing options such as loans, partnerships, or savings to ensure you can cover the costs detailed in the FDD.

4. Choose a Suitable Location

  • Research and select a strategic location that maximizes customer accessibility and market penetration.
  • Consider factors such as demographics, competition, and local demand for home restoration and emergency repair services.

5. Complete Required Training

  • Participate in all training programs provided by Storm Guard to understand their operational standards, service quality, and customer handling.
  • Training may cover technical skills, customer service, software use, and management practices.

6. Obtain Necessary Licenses and Permits

  • Research and comply with local regulations concerning business licenses, permits, and insurance needed to operate a home services franchise.
  • Ensure compliance with both local and national standards and regulations.

7. Launch Your Franchise

  • Implement the pre-opening marketing strategies suggested by Storm Guard to build awareness and anticipation.
  • Set up your location, hire and train employees, and prepare for daily operations following the guidelines provided by the Storm Guard.

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.

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