iFoam Franchise Prices, Charges, Revenues, Earnings (2022 Overview)

On this unique Franchise Chatter FDD Speak put up, you’ll study the next:

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

Part II – Preliminary franchise price, royalty price, and advertising and marketing price for an iFoam franchise, based mostly on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned iFoam shops initially of the yr and the top of the yr for 2019, 2020, and 2021, based mostly 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), based mostly on Merchandise 19 of the corporate’s 2022 FDD, together with data on the:

• fiscal yr 2021 gross income, value of products bought (supplies and labor), bills, and EBITDA for the 2 iFoam shops working in territories in Alabama and Tennessee for the whole interval from November 1, 2020, via October 31, 2021 (the “Measurement Interval”)

• fiscal yr 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 the whole 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, based mostly on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Charge:  $59,500
• Insurance coverage (90 days):  $3,000 to $5,000
• Tuition Charge:  $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
• Autos:  $76,047 to $380,235
• Licenses, Certificates, and Permits:  $0 to $2,500
• Skilled Charges:  $2,800 to $5,300
• Expertise Charge:  $9,500
• Name Middle Charge:  $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 Charge (first yr):  $12,000
• Inventive Media Fund Charge:  $5,000
• Grand Opening Promoting Requirement Expense:  $10,000
• Digital Administration Charge (3 months):  $1,500
• Nationwide Allow Database Charge (3 months):  $297
• Further Funds:  $20,000 to $40,000
• Whole Estimated iFoam Franchise Prices:  $242,494 to $739,682

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

• iFoam’s preliminary franchise price, royalty price, and advertising and marketing price, based mostly on Objects 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Charge:  $59,500
• Royalty Charge:  the better of: (i) 8.5% of Gross Revenues Collected; or (ii) the Minimal Royalty Charge (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 Shops

Franchised

2019

• Shops on the Begin of the 12 months:  4*
• Shops 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

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

2021

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

Firm-Owned

2019

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

2020

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

2021

• Shops on the Begin of the 12 months:  0
• Shops 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 Earnings) for the iFoam Franchise (Merchandise 19, 2022 FDD)

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

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

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

• This Merchandise units forth historic income and value data for the Shops which was offered to iFoam by the house owners of the Shops.

• The Shops have been open for the whole interval from November 1, 2020, via October 31, 2021 (the “Measurement Interval”).

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

• Apart from the exclusions of sure prices and bills that you’ll pay beneath the franchise settlement as famous beneath, the Shops are considerably much like the iFoam Enterprise supplied beneath the Disclosure Doc.

• Half 1 units forth every Outlet’s Gross Income, Price of Items Bought, and sure bills of the Shops 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 Shops and no assurance might be supplied that the information doesn’t include inaccuracies that an audit would possibly disclose.

Half 1 – Gross Income, Price of Items Bought, and Sure Bills of the Shops Through the Measurement Interval (November 1, 2020, via 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%)
• Whole 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 Providers:  $13,266 (0.39%)
• Workplace Provides:  $5,552 (0.16%)
• Whole 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%)
• Whole 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 Providers:  $6,324 (0.55%)
• Workplace Provides:  $6,224 (0.54%)
• Whole Bills:  $66,645 (5.8%)

EBITDA:  $428,540 (37.27%)

C. Common of Shops 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%)
• Whole 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 Providers:  $9,795 (0.4%)
• Workplace Provides:  $5,888 (0.3%)
• Whole Bills:  $213,117 (9.3%)

EBITDA:  $722,848 (31.6%)

• “Outlet Gross Revenues” is outlined as all revenues generated by the Shops in providing Authorised Merchandise and Providers in the course of the Measurement Interval.

• “Supplies” is outlined as the price of the supplies used within the provision of the Authorised Merchandise and Providers, and another related merchandise used within the enterprise.

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

• “Whole 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 marketing and promoting.

• “Truck Restore, Upkeep, and Gas” consists of all gas prices and all prices of the restore of automobiles and trailers, routine upkeep equivalent to oil modifications, tire replacements, and brakes. The Shops 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, tools, and provides, besides “Utilities” (outlined beneath).

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

• “Insurance coverage” consists of Enterprise Legal responsibility and Auto Insurance coverage, in addition to Employees’ Compensation and another kind of insurance coverage.

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

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

• “Financial institution Charges and Service provider Providers” 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, equivalent to pens, paper, notebooks, envelops, folders, tape, glue, markers, and another associated administrative bills pertaining to workplace provides.

• “Whole 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 Providers, 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 Whole Price of Items Bought and Whole Bills.

• “EBITDA %” is outlined as EBITDA expressed as a share 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 Middle Charge;
• b. Expertise Charge;
• c. Royalties and/or Minimal Royalty Charges;
• d. Native Model Optimization Charge;
• e. Accounting Providers Charge;
• f. Promoting Expense Deficiency;
• g. Digital Administration Charge;
• h. Administrative Charges;
• i. Annual Convention Charge;
• j. Coaching Charges; and
• ok. Nationwide Allow Database Charge

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 typical {dollars} spent per transaction for spray foam insulation jobs carried out on residential houses and new development buildings in the course of the Measurement Interval.

• “Shut Ratio” is outlined as the proportion 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 typical whole annual compensation Gross sales Supervisor obtained in 2020 for compensation. This consists of an annual wage and different incentives.

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

• “Prep Assistant Annual Compensation” is outlined as the typical whole annual compensation Prep Assistant obtained 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 include full data in regards to the working prices and bills that you’ll incur in working your iFoam Enterprise. Working prices and bills might fluctuate 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 tools prices related to operating your individual 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 may be chargeable for.

• Curiosity expense, curiosity earnings, depreciation, amortization, and different earnings or bills will fluctuate considerably from enterprise to enterprise, relying on the quantity and sort of financing you get hold of to determine your iFoam Enterprise.

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

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