In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Stand Strong Fencing franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Stand Strong Fencing franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Stand Strong Fencing outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Stand Strong Fencing franchise opportunity

Section V – Presentation and analysis of Stand Strong Fencing’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, adjusted expenses (disclosed expenses not paid by founder but charged to a franchisee), and adjusted EBITDA of the Founding Franchisee Business

• 2023 average ticket, closing percent, revenue mix, and number of subcontractors of the Founding Franchisee Business

Section VI – Key ratios, comparables, computations, and analyses for the Stand Strong Fencing franchise opportunity (exclusive content for Platinum subscribers)

Section I – Stand Strong Fencing Franchise Costs

• Stand Strong Fencing franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Fee:  $59,500
• Insurance (90 days):  $4,000 to $8,000
• Tuition Fee:  $4,995
• Travel and Living Expenses While Training:  $1,500 to $3,000
• Opening Package:  $10,000 to $12,000
• Equipment Package:  $0 to $2,400
• Rent and Utilities (90 days):  $500 to $17,500
• Vehicles:  $13,752 to $15,848
• Licenses, Certificates, and Permits:  $0 to $15,855
• Professional Fees:  $0 to $5,000
• Technology Fee:  $570
• CRM Fee:  $1,500
• Call Center Fee:  $1,125 to $3,225
• Dues and Subscriptions:  $0 to $1,500
• Leasehold Improvements:  $0 to $2,500
• Brand Marketing Fee:  $15,000
• Initial Marketing Expenditure and Local Advertising Expenditure (90 days):  $20,000
• Digital Management Fee:  $3,000
• Accounting Services Fee:  $2,109
• ZeePartnerships Fee:  $3,000
• Additional Funds:  $20,000 to $30,000
• Total Estimated Stand Strong Fencing Franchise Costs:  $160,551 to $226,502

Section II – Stand Strong Fencing’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Stand Strong Fencing’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Royalty Fee:  the greater of: (i) Royalty Percentage of Gross Revenues (6% to 8% of Gross Revenues, depending on the year-to-date Gross Revenues); or (ii) the Minimum Royalty Fee ($300 per week to $650 per week, depending on the number of years in operation)

• Brand Fund Contribution:  if and when established, the then-current Brand Fund Contribution amount, which shall not exceed 3% of weekly Gross Revenues Collected

• Local Advertising Expenditure Requirement:  you are required to spend at least $20,000 within the first 90 days of commencing operations on Initial Marketing Expenditure Requirement. Thereafter on a monthly basis, the greater of either: (i) $2,000 per month; or (ii) 5% of your monthly Gross Revenues Collected.

Section III – Number of Franchised and Company-Owned Stand Strong Fencing Outlets

Franchised

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  1
• Net Change:  1
• This Outlet is owned and operated by Eli Orenstein, Stand Strong Fencing’s Founder. This Outlet operates in a geographic area containing 10 Protected Territories.

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Stand Strong Fencing Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Stand Strong Fencing Franchise (Item 19, 2024 FDD)

• On June 9, 2023, the franchisor purchased certain assets of Stand Strong Inc., d/b/a Stand Strong Fencing, a Tennessee corporation, operating in territories in the state of Tennessee (the “Founding Franchisee Business”). The Founding Franchisee Business was, prior to the June 2023 transaction, and is currently, owned and operated by Stand Strong Fencing’s Founder Eli Orenstein (“Founding Franchisee”).

• Stand Strong Fencing’s Founding Franchisee first commenced operation in September 2021, when he purchased certain assets of Stand Strong Fencing LLC (the “Original Business”). The Original Business first commenced operation in November 2017.

• Stand Strong Fencing’s Founding Franchisee engages in Residential Fencing Services and only recently began offering commercial fencing services. The Stand Strong Fencing Business you will operate under the Stand Strong Fencing mark offers substantially similar services as Stand Strong Fencing’s Founding Franchisee, however your Stand Strong Fencing Business will offer both Residential Fencing Services and Commercial Fencing Services throughout the term.

• “Residential Fencing Services” is defined as the following fencing services provided to residential customers by the Founding Franchisee Business during the Measurement Period: (i) wood, steel, aluminum, and vinyl fencing installation services; and (ii) wood, steel, aluminum, and vinyl fencing repair and replacement services.

• “Commercial Fencing Services” is defined as the following fencing services provided to commercial or business customers: (i) wood, steel, aluminum, and vinyl fencing installation services; (ii) wood, steel, aluminum, and vinyl fencing repair and replacement services; and (iii) other products, services, and events that Franchisor may approve and modify from time to time.

• The Founding Franchisee Business served as the base from which Stand Strong Fencing created the franchise model offered under the Disclosure Document, is Stand Strong Fencing’s first franchise offering, and serves as Stand Strong Fencing’s flagship outlet. As of December 31, 2023, there were no other franchisees in operation.

• The Founding Franchisee Business was in operation for the entirety of the 2023 calendar year (the “Measurement Period”).

• The Founding Franchisee Business operated a business substantially similar to the franchised business offered under the Disclosure Document in an area that would encompass approximately 10 Protected Territories, under the principal trademark “Stand Strong Fencing,” with 93% of the revenues generated during the Measurement Period coming from an area that would encompass approximately 3 Protected Territories.

Part 1 – Gross Sales, Direct Cost of Goods and Services Sold, and Certain Disclosed Expenses of the Founding Franchisee Business During the Measurement Period, as Well as Certain Adjusted Expenses of the Founding Franchisee Business During the Measurement Period (2023 Calendar Year)

Gross Sales:  $1,680,654 (100.0%)

Direct Cost of Goods and Services Sold

• Subcontractor Costs:  $291,799 (17.4%)
• Materials:  $841,157 (50.0%)
• Total Direct Cost of Goods and Services Sold:  $1,132,956 (67.4%)

Gross Profit:  $547,698 (32.6%)

Disclosed Expenses

• Advertising and Promotion:  $25,167 (1.5%)
• Insurance Expense:  $847 (0.1%)
• Payroll Expenses:  $82,933 (4.9%)
• Rent, Utilities, and Trash:  $1,521 (0.1%)
• Merchant Fees and Bank Fees:  $16,368 (1.0%)
• Automobile Repair, Maintenance, and Other:  $10,337 (0.6%)
• Miscellaneous Expense:  $2,553 (0.2%)
• Office Supplies:  $5,221 (0.3%)
• Dues, Subscriptions, Taxes, and Licenses:  $ – (0.0%)
• Total Disclosed Expenses:  $144,947 (8.6%)

Gross Profit Less Disclosed Expenses:  $402,751 (24.0%)

Adjusted Expenses: Disclosed Expenses Not Paid by Founder but Charged to a Franchisee

• Royalty Fee:  $127,646 (7.6%)
• Technology Fee and CRM Fee:  $6,300 (0.4%)
• Call Center Fee:  $23,802 (1.4%)
• Digital Management Fee:  $12,000 (0.7%)
• Annual Conference Fee:  $1,000 (0.1%)
• Bookkeeping Fee:  $4,995 (0.3%)
• Total Adjusted Expenses:  $175,743 (10.5%)

Total Disclosed Expenses and Adjusted Expenses:  $320,690 (19.1%)

Adjusted EBITDA:  $227,008 (13.5%)

Part 2 – Key Performance Indicators (KPIs) (January 1, 2023 to December 31, 2023)

• Average Ticket:  $6,035
• Closing Percent:  33%
• % of Revenue from Commercial:  8%
• % of Revenue from Residential:  92%
• % of Revenue from Wood Fencing:  67%
• % of Revenue from Aluminum Fencing:  25%
• % of Revenue from Chain Link Fencing:  3%
• % of Revenue from Vinyl Fencing:  5%
• Number of Subcontractors:  1

• “Average Ticket” is defined as the average dollars spent per transaction performed during the Measurement Period.

• “Closing Percent” is defined as the percentage of total estimates written that turned into invoices.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

Section VI – Stand Strong Fencing Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️