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

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

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

Section III – Number of franchised and company-owned Schooley Mitchell 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 Schooley Mitchell franchise opportunity

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

• average, median, highest, and lowest annual secured revenue for the 63 full-time Schooley Mitchell franchisees for the 12 months ending May 31, 2023, by quartile

• average, median, highest, and lowest annual secured revenue for the 132 part-time Schooley Mitchell franchisees for the 12 months ending May 31, 2023

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

Section I – Schooley Mitchell Franchise Costs

• Schooley Mitchell franchise costs (standard and builder franchises), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $68,000
• Training Expenses:  $500 to $2,000
• Equipment and Fixtures (in home office):  $0 to $2,000
• Equipment and Fixtures (office outside of home):  $0 to $2,000 (optional)
• Security Deposits, Insurance, Utilities, Licenses, Professional Fees, Inventory, and Other Prepaid Expenses (in home office):  $0 to $1,000
• Security Deposits, Insurance, Utilities, Licenses, Professional Fees, Inventory, and Other Prepaid Expenses (office outside of home):  $0 to $2,000 (optional)
• Rent (office outside of home):  $0 to $750 (optional)
• Office Supplies (with logo):  $1,000
• Additional Funds – 3 Months:  $1,000 to $2,000
• Total Estimated Schooley Mitchell Franchise Costs:  $70,500 to $80,750

Section II – Schooley Mitchell’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $68,000

• Royalty Fee (standard franchise):  8% of Gross Sales in each calendar month. The minimum royalty for the 7th through 29th months during the initial term of the agreement is $200 per month, and for the 30th and all subsequent months during the initial term of the agreement is $400 per month.

• Royalty Fee (builder franchise):  12% of Gross Sales in each calendar month. The minimum royalty for the 7th and all subsequent months during the initial term of the agreement is $125 per month.

• Royalty Fee (development franchise):  8% of Gross Sales in each calendar month. The royalty fee is reduced to 7% for Gross Sales of $2,500,001 to $5,000,000, and to 6% of Gross Sales above $5,000,000 in each calendar year. Minimum royalty is the same as a standard franchise.

• Advertising Fee (standard and development franchise):  2% of Gross Sales in each calendar month. The minimum fee for the 7th through 29th months during the initial term of the agreement is $50 per month, and for the 30th and all subsequent months during the initial term of the agreement is $100 per month.

• Advertising Fee (builder franchise):  3% of Gross Sales in each calendar month. No minimum fee.

Section III – Number of Franchised and Company-Owned Schooley Mitchell Outlets

Franchised

2021

• Outlets at the Start of the Year:  168
• Outlets at the End of the Year:  194
• Net Change:  +26

2022

• Outlets at the Start of the Year:  194
• Outlets at the End of the Year:  201
• Net Change:  +7

2023

• Outlets at the Start of the Year:  201
• Outlets at the End of the Year:  227
• Net Change:  +26

Company-Owned

2021

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  26
• Net Change:  +3

2022

• Outlets at the Start of the Year:  26
• Outlets at the End of the Year:  28
• Net Change:  +2

2023

• Outlets at the Start of the Year:  28
• Outlets at the End of the Year:  34
• Net Change:  +6

Section IV – News Updates on the Schooley Mitchell Franchise

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

• This is a historic financial performance representation of active franchisees that operate a franchise substantially similar to the type offered in the Disclosure Document.

• The following tables present unaudited information about the historical Annual Secured Revenue generated by 163 of Schooley Mitchell’s franchisees during the 12 months ending May 31, 2024 (the “Reporting Year”).

• “Annual Secured Revenue” means the revenue a franchisee has received or expects to receive under all franchisee customer contracts that were signed during the Reporting Year. For example, if during the Reporting Year a franchisee signed a contract with a customer achieving that customer $60,000 in savings over three years and earning the franchisee a $30,000 commission from the customer paid over the life of that contract, that franchisee has obtained $30,000 of Annual Secured Revenue in the Reporting Year. Annual Secured Revenue does not include any deductions for fees, costs, or expenses.

• The financial performance information is separated into two tables—one for Full-Time Franchisees and one for Part-Time Franchisees—which reflects the two different modes in which Schooley Mitchel’s franchisees have historically operated.

• Schooley Mitchell has delineated “Full-Time Franchisees” as those franchisees who devote at least 15 hours of work per week to the franchised business. “Part-Time Franchisees” are those franchisees who devote less than 15 hours or work per week to the franchised business. Schooley Mitchell surveyed its franchisees on the number of hours each worked per week in order to categorize their financial performance information for this Item 19.

• The franchise information contained in this Item 19 does not include data for (i) company-owned and company-affiliated outlets; (ii) the 18 franchisees who ceased operating during the Reporting Year; and (iii) the 44 new franchisees that began operating during the Reporting Year.

Part 1 – Annual Secured Revenue of Full-Time Franchisees for the 12 Months Ending May 31, 2024

1st Quartile

• Number of Full-Time Franchisees:  17
• Average Annual Secured Revenue:  $1,004,445
• Median Annual Secured Revenue:  $697,665
• Highest Annual Secured Revenue:  $3,400,703
• Lowest Annual Secured Revenue:  $364,862
• Number of Full-Time Franchisees Achieving the Average:  4
• Percentage of Full-Time Franchisees Achieving the Average:  24%
• Number of Full-Time Franchisees in Range Achieving the Average:  4
• Percentage of Full-Time Franchisees in Range Achieving the Average:  24%

2nd Quartile

• Number of Full-Time Franchisees:  16
• Average Annual Secured Revenue:  $223,673
• Median Annual Secured Revenue:  $228,878
• Highest Annual Secured Revenue:  $329,053
• Lowest Annual Secured Revenue:  $150,063
• Number of Full-Time Franchisees Achieving the Average:  26
• Percentage of Full-Time Franchisees Achieving the Average:  79%
• Number of Full-Time Franchisees in Range Achieving the Average:  9
• Percentage of Full-Time Franchisees in Range Achieving the Average:  56%

3rd Quartile

• Number of Full-Time Franchisees:  17
• Average Annual Secured Revenue:  $107,327
• Median Annual Secured Revenue:  $107,550
• Highest Annual Secured Revenue:  $148,537
• Lowest Annual Secured Revenue:  $84,536
• Number of Full-Time Franchisees Achieving the Average:  42
• Percentage of Full-Time Franchisees Achieving the Average:  84%
• Number of Full-Time Franchisees in Range Achieving the Average:  8
• Percentage of Full-Time Franchisees in Range Achieving the Average:  47%

4th Quartile

• Number of Full-Time Franchisees:  16
• Average Annual Secured Revenue:  $59,644
• Median Annual Secured Revenue:  $66,228
• Highest Annual Secured Revenue:  $81,548
• Lowest Annual Secured Revenue:  $49,610
• Number of Full-Time Franchisees Achieving the Average:  60
• Percentage of Full-Time Franchisees Achieving the Average:  91%
• Number of Full-Time Franchisees in Range Achieving the Average:  10
• Percentage of Full-Time Franchisees in Range Achieving the Average:  63%

All

• Number of Full-Time Franchisees:  66
• Average Annual Secured Revenue:  $355,952
• Median Annual Secured Revenue:  $148,537
• Highest Annual Secured Revenue:  $3,400,703
• Lowest Annual Secured Revenue:  $49,610
• Number of Full-Time Franchisees Achieving the Average:  26
• Percentage of Full-Time Franchisees Achieving the Average:  39%
• Number of Full-Time Franchisees in Range Achieving the Average:  26
• Percentage of Full-Time Franchisees in Range Achieving the Average:  39%

• The “1st Quartile” range refers to the top 25% of the franchisee count, ranked by Annual Secured Revenue, the “2nd Quartile” range refers to the next 25% of the franchisee count, and so on.

• The “Average Annual Secured Revenue” is calculated by adding up all Annual Secured Revenue figures and dividing by the number of figures counted.

• The “Median Annual Secured Revenue” is calculated by placing all Annual Secured Revenue figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.

Part 2 – Annual Secured Revenue of Part-Time Franchisees for the 12 Months Ending May 31, 2024

All

• Number of Part-Time Franchisees:  97
• Average Annual Secured Revenue:  $9,008
• Median Annual Secured Revenue:  $3,378
• Highest Annual Secured Revenue:  $47,444
• Lowest Annual Secured Revenue:  $0
• Number of Part-Time Franchisees Achieving the Average:  30
• Percentage of Part-Time Franchisees Achieving the Average:  31%

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

Section VI – Schooley Mitchell Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️