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

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

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

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

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

• 2023 average, median, highest, and lowest gross revenue, number of customers, and gross revenue per customer for the 136 Screenmobile Territories that were in operation for the entire 2023 fiscal year (by quartile and overall)

• 2023 average, median, highest, and lowest operating profit percentage for the 126 Screenmobile Territories that completed the franchisor’s survey

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

Section I – Screenmobile Franchise Costs

• Franchise Fee:  $49,500
• Territory Fee:  $22,500
• Start-Up Package:  $42,500
• Inventory and Supplies:  $15,000 to $20,000
• Travel Expenses for Initial Training:  $1,500 to $4,000
• Vehicle Lease:  $0 to $7,500
• Signage for Vehicles:  $3,500 to $7,000
• Vehicle Registration Fees:  $1,500 to $2,000
• Insurance:  $2,000 to $12,000
• Software:  $249 to $2,292
• Telephone Lines and Wireless Internet:  $300 to $800
• Lease, Utility and Security Deposits, and Storage:  $0 to $2,500
• Additional Funds for 3 Months:  $22,500 to $50,000
• Total Estimated Screenmobile Franchise Costs:  $161,049 to $222,592

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

• Initial Franchise Fee:  $49,500

• Initial Territory Fee:  $0.15 per Household

• Royalty:  beginning on the Original Opening Date, 7% of Gross Revenue. Beginning month 4 following the Original Opening Date, 7% of Gross Revenue or the Minimum Royalty Fee, whichever is greater. The Minimum Royalty Fee is: Months 4 to 12: $450 per month; Months 13 to 24: $1,050 per month; Months 25 to 36: $1,750 per month; Months 37+: $2,188 per month

• Brand Fund Contribution:  currently, 2% of Gross Revenue

• Local Marketing and/or Cooperative:  4% of the preceding month’s generated Gross Revenue

Section III – Number of Franchised and Company-Owned Screenmobile Outlets

Franchised

2021

• Outlets at the Start of the Year:  128
• Outlets at the End of the Year:  140
• Net Change:  +12

2022

• Outlets at the Start of the Year:  140
• Outlets at the End of the Year:  150
• Net Change:  +10

2023

• Outlets at the Start of the Year:  150
• Outlets at the End of the Year:  145
• Net Change:  -5

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

Section IV – News Updates on the Screenmobile Franchise

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

• In this Item, Screenmobile presents certain historical information for Screenmobile Franchised Businesses for the 2023 fiscal year and prior years.

• As of December 31, 2023, Screenmobile had 107 franchisees operating in 145 Territories. Parts 1 through 5 present information on 136 Territories that were in operation for the entire 2023 fiscal year.

• Excluded from these tables are 6 Territories that ceased operating during the 2023 fiscal year, 1 Territory that opened during the 2023 fiscal year, and 8 Territories that did not report Gross Revenue for the full 12 months of 2023.

Part 1 – Gross Revenue Per Territory, by Quartile

• Part 1 reports on 136 Territories that were in operation for the entire 2023 fiscal year, ranked in order of highest Gross Revenue to lowest Gross Revenue.

Top 25%

• Number of Territories in Group:  34
• Average Gross Revenue Per Territory in Group:  $1,000,940
• Median Gross Revenue of Territories in Group:  $940,944
• Highest Gross Revenue of Territories in Group:  $3,002,951
• Lowest Gross Revenue of Territories in Group:  $491,098
• Number of Territories Achieving or Exceeding Group Average:  14
• Percent of Territories Achieving or Exceeding Group Average:  41%

2nd Quartile

• Number of Territories in Group:  34
• Average Gross Revenue Per Territory in Group:  $385,437
• Median Gross Revenue of Territories in Group:  $384,415
• Highest Gross Revenue of Territories in Group:  $478,423
• Lowest Gross Revenue of Territories in Group:  $303,769
• Number of Territories Achieving or Exceeding Group Average:  17
• Percent of Territories Achieving or Exceeding Group Average:  50%

3rd Quartile

• Number of Territories in Group:  34
• Average Gross Revenue Per Territory in Group:  $237,111
• Median Gross Revenue of Territories in Group:  $236,831
• Highest Gross Revenue of Territories in Group:  $301,792
• Lowest Gross Revenue of Territories in Group:  $172,951
• Number of Territories Achieving or Exceeding Group Average:  17
• Percent of Territories Achieving or Exceeding Group Average:  50%

Bottom 25%

• Number of Territories in Group:  34
• Average Gross Revenue Per Territory in Group:  $106,205
• Median Gross Revenue of Territories in Group:  $106,636
• Highest Gross Revenue of Territories in Group:  $171,995
• Lowest Gross Revenue of Territories in Group:  $18,925
• Number of Territories Achieving or Exceeding Group Average:  17
• Percent of Territories Achieving or Exceeding Group Average:  50%

Totals

• Number of Territories in Group:  136
• Average Gross Revenue Per Territory in Group:  $432,423
• Median Gross Revenue of Territories in Group:  $302,780
• Highest Gross Revenue of Territories in Group:  $3,002,951
• Lowest Gross Revenue of Territories in Group:  $18,925
• Number of Territories Achieving or Exceeding Group Average:  42
• Percent of Territories Achieving or Exceeding Group Average:  31%

Part 2 – Number of Customers Per Territory, by Quartile

• Part 2 reports on 136 Territories that were in operation for the entire 2023 fiscal year, ranked in order of highest Number of Customers to lowest Number of Customers.

Top 25%

• Number of Territories in Group:  34
• Average Number of Customers Per Territory:  680
• Median Number of Customers in Group:  473
• Highest Territory Number of Customers in Group:  1,577
• Lowest Territory Number of Customers in Group:  205
• Number of Territories Exceeding Average:  11
• Percentage of Territories Exceeding Average:  32%

2nd Quartile

• Number of Territories in Group:  34
• Average Number of Customers Per Territory:  408
• Median Number of Customers in Group:  371
• Highest Territory Number of Customers in Group:  921
• Lowest Territory Number of Customers in Group:  94
• Number of Territories Exceeding Average:  13
• Percentage of Territories Exceeding Average:  38%

3rd Quartile

• Number of Territories in Group:  34
• Average Number of Customers Per Territory:  286
• Median Number of Customers in Group:  289
• Highest Territory Number of Customers in Group:  718
• Lowest Territory Number of Customers in Group:  65
• Number of Territories Exceeding Average:  17
• Percentage of Territories Exceeding Average:  50%

Bottom 25%

• Number of Territories in Group:  34
• Average Number of Customers Per Territory:  158
• Median Number of Customers in Group:  131
• Highest Territory Number of Customers in Group:  607
• Lowest Territory Number of Customers in Group:  5
• Number of Territories Exceeding Average:  15
• Percentage of Territories Exceeding Average:  44%

Totals

• Number of Territories in Group:  136
• Average Number of Customers Per Territory:  383
• Median Number of Customers in Group:  314
• Highest Territory Number of Customers in Group:  1,577
• Lowest Territory Number of Customers in Group:  5
• Number of Territories Exceeding Average:  49
• Percentage of Territories Exceeding Average:  36%

• “Number of Customers” is calculated by determining the total number of customers serviced by each Territory.

Part 3 – Average Gross Revenue Per Customer, by Quartile

• Part 3 reports on 136 Territories that were in operation for the entire 2023 fiscal year, ranked in order of highest Gross Revenue Per Customer to lowest Gross Revenue Per Customer.

Top 25%

• Number of Territories in Group:  34
• Average Gross Revenue Per Customer for the Group:  $1,674
• Median Gross Revenue Per Customer in Group:  $1,796
• Highest Gross Revenue Per Customer for Territories in Group:  $3,055
• Lowest Gross Revenue Per Customer for Territories in Group:  $454
• Number of Territories Exceeding Average:  18
• Percentage of Territories Exceeding Average:  53%

2nd Quartile

• Number of Territories in Group:  34
• Average Gross Revenue Per Customer for the Group:  $1,238
• Median Gross Revenue Per Customer in Group:  $1,137
• Highest Gross Revenue Per Customer for Territories in Group:  $4,050
• Lowest Gross Revenue Per Customer for Territories in Group:  $333
• Number of Territories Exceeding Average:  15
• Percentage of Territories Exceeding Average:  44%

3rd Quartile

• Number of Territories in Group:  34
• Average Gross Revenue Per Customer for the Group:  $1,057
• Median Gross Revenue Per Customer in Group:  $835
• Highest Gross Revenue Per Customer for Territories in Group:  $4,135
• Lowest Gross Revenue Per Customer for Territories in Group:  $420
• Number of Territories Exceeding Average:  10
• Percentage of Territories Exceeding Average:  29%

Bottom 25%

• Number of Territories in Group:  34
• Average Gross Revenue Per Customer for the Group:  $1,099
• Median Gross Revenue Per Customer in Group:  $757
• Highest Gross Revenue Per Customer for Territories in Group:  $6,464
• Lowest Gross Revenue Per Customer for Territories in Group:  $205
• Number of Territories Exceeding Average:  7
• Percentage of Territories Exceeding Average:  21%

Totals

• Number of Territories in Group:  136
• Average Gross Revenue Per Customer for the Group:  $1,267
• Median Gross Revenue Per Customer in Group:  $952
• Highest Gross Revenue Per Customer for Territories in Group:  $6,464
• Lowest Gross Revenue Per Customer for Territories in Group:  $205
• Number of Territories Exceeding Average:  53
• Percentage of Territories Exceeding Average:  39%

• “Average Gross Revenue Per Customer” is determined by adding the total Gross Revenue generated by the Territories in the respective quartile and dividing it by the Number of Customers in the same quartile.

Part 4 – Operating Expense as a Percentage of Gross Sales

• In April 2024, Screenmobile sent a survey to all franchisees requesting figures for the 2023 fiscal year showing their respective operating expenses as a percentage of Gross Revenue. Part 4 includes information for 126 Territories that completed the survey.

• Screenmobile has excluded the results of the responding franchisees who were not open for the entire 2023 fiscal year and the franchisees who did not respond to the survey.

• Part 4 below reports the average of the survey responses from these 126 Territories.

• Average Operating Expense Percentage:  70%
• Median Operating Expense Percentage:  71%
• Lowest Operating Expense Percentage:  16%
• Highest Operating Expense Percentage:  145%
• Number of Territories Exceeding Average:  67
• Percentage of Territories Exceeding Average:  53%

• “Operating Expense(s)” includes items such as supplies, vehicle expenses and licensing, marketing, utilities, software, insurance, professional fees, and employee wages. It also includes fees paid to Screenmobile, including Royalty Fees and Brand Fund contributions. It does not include owners’ salary, owners’ draws, or shareholders’ draws, nor does it include interest, income taxes, depreciation, amortization, and non-operating expenses.

• Some of the reporting franchisees employ individuals to manage the day-to-day operations of the Franchised Business and other reporting franchisees are owner-operators.

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

• The financial information Screenmobile utilized in preparing the preceding financial performance representations was based on information reported to it by franchisees.

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