Sears Home Appliance Showroom
Backed by the integrity and legacy of the Sears brand, Sears Home Appliance Showroom franchisees have a competitive edge normally unavailable in a retail franchise. Franchisees benefit from the power of the Sears brand and its customer value proposition that includes significant consumer level marketing, massive buying power, delivery and installation by highly trained professionals, inventory owned by Sears at no expense to the franchisee, and sophisticated operating systems.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
0 |
0 |
1 |
| | % Change | -- |
-- |
-- |
| | Company-Owned |
110 |
106 |
105 |
| | % Change | -- |
-3.6% |
-0.9% |
| | Total |
110 |
106 |
106 |
| | % Change | -- |
-3.6% |
0% |
| | Franchised as % of Total |
0% |
0% |
0.94% |
Investment Required
The initial fee for a Sears Home Appliance Showroom franchise is $25,000.
Sears Home Appliance Showroom 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 |
$25,000 |
$25,000 |
| |
Rent (3 Months) |
$30,000 |
$175,000 |
| |
Asset Purchase Price |
$20,000 |
$1,600,000 |
| |
Legal/Initiation Fee |
$10,000 |
$25,000 |
| |
Expenses While Training |
$2,000 |
$5,000 |
| |
Insurance Premiums |
$10,000 |
$20,000 |
|
Additional Funds (3 Months) |
$15,000 |
$35,000 |
| |
Total Initial Investment |
$112,000 |
$1,885,000 |
Ongoing Expenses
Sears Home Appliance Showroom franchisees pay ongoing marketing fund contributions equal up to 2% of net sales. Additional fees payable by the franchisee include the cost of advertising materials and continuing training fees.
What You Get–Training and Support
Each franchisee receives concentrated effort from a business support team comprised from the vast resources of one of the largest and more prestigious retailers in the country. Sears Home Appliance Showroom training programs are extensive and include a combination of classroom instruction, on-the-job training along with suggestions and advice pertaining to local advertising, marketing, financial and management systems.
Sears Home Appliance Showroom franchisees can take advantage of the additional revenue generated by the Sears Solution Center that utilizes the internet to place customer orders, receive orders, and request additional services such as carpet or upholstery cleaning.
Territory
Sears Home Appliance Showroom does not grant exclusive territories.
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 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Top 100 Franchises publication.
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