GarageTek
Founded in 2000, GarageTek launched the first national company to offer custom, installed garage organization and storage systems. With its unrivaled beginnings and through its commitment to consumer satisfaction, GarageTek is now universally recognized as the international industry leader. GarageTek systems design garage and storage spaces to suit individual clients’ precise needs. GarageTek revolutionizes garages around the world through its comprehensive transformation package that targets walls, floors, ceilings and lighting, and allows customers to maximize space and utility. GarageTek systems are particularly interchangeable, providing customers with long-term ease and flexibility in design and use of their garage and storage space. Indicative of GarageTek’s reception and popularity, 96% of customers recommend GarageTek to others.
As the leader of the fastest growing sector (garage organization) within the home organization industry, GarageTek presents an exciting opportunity for interested franchisees. GarageTek offers franchisees two investment level options depending on the market size in which the franchisee is interested. In addition to this generous accommodation of franchisees’ abilities and ambitions, franchisees benefit from GarageTek’s exceptional product line, leading brand recognition, comprehensive training and support.
| |
Operating Units |
12/31/2007 |
12/31/2008 |
12/31/2009 |
|---|
| | Franchised | 39 | 35 | 30 |
| | % Change | -- | 10.3% | -14.3% |
| | Company-Owned | 1 | 1 | 1 |
| | % Change | -- | 0.0% | 0.0% |
| | Total | 40 | 36 | 31 |
| | % Change | -- | -10.0% | -13.9% |
| | Franchised as % of Total | 97.50% | 97.22% | 96.77% |
Investment Required
The fee for a GarageTek franchise is $50,000 (or $25,000 for a GarageTek Express franchise).
GarageTek provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Franchise Fee | $50,000 | $50,000 |
| | Equipment, Furniture & Fixtures | $10,000 | $11,500 |
| | Real Property (3 months) | $4,000 | $7,000 |
| | Leasehold Improvements | $0 | $5,000 |
| | Signage | $1,000 | $1,500 |
| | Initial Inventory | $55,000 | $55,000 |
| | Training Expenses | $1,500 | $2,500 |
| | Grand Opening Advertising | $2,500 | $5,000 |
| | Insurance | $2,500 | $5,000 |
| | Zoning Expenses | $1,000 | $1,000 |
| | Utility / Security Deposit | $1,500 | $2,500 |
| | Professional Fees | $2,500 | $5,000 |
| | Costs / Site Selection | $1,500 | $2,000 |
| | Supplies | $1,500 | $2,000 |
| | Software, Laptop & Printer | $12,000 | $20,000 |
| | Marketing (3 months) | $30,000 | $45,000 |
| | Additional Funds (3 months) | $25,000 | $35,000 |
| | Total Investment | $201,500 | $255,000 |
On-going Expenses
GarageTek franchisees pay royalty fees equal to 6% of gross revenue for the first 12 months of operations and the greater of 6% of gross revenue or $3,000 after the first year.
Other fees payable by the franchisees include a monthly national and regional marketing fee equal to 4% of gross revenue for the first 12 months and the greater of 4% of gross revenue or $2,000 after the first 12 months, and local advertising expenditures equal to the greater of 2% of gross revenue or $7,500 for the first 36 months and then the greater of 2% or $5,000 after the first 36 months.
What You Get–Training and Support
GarageTek provides a two-week initial training program for the franchise owner, a designated manager and two employees in Syosset, New York. Training covers aspects of management, business planning and operations, staffing, site selection, showroom setup and layout, showroom/facility operations, equipment and its operations, inventory, sales and marketing, and technical execution and installation.
A GarageTek representative will travel to the franchisee’s territory on a quarterly basis to lend technical assistance with initial installation to ensure that the skills and procedures acquired during the training program are correctly applied in the field.
GarageTek also offers refresher courses, additional training programs and on-the-job training at a franchisee’s request.
Territory
GarageTek grants exclusive territories based upon the number of counties in an area between 40 and 60 miles and the population size of approximately 250,000 free-standing single-family homes.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2010 FDD. Upon receipt of the 2011 FDDs, we will provide new and updated write-ups that will reflect more current information. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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