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

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

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

Section III – Number of franchised and company-owned Bumble Bee Blinds 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 Bumble Bee Blinds franchise opportunity

Section V – Presentation and analysis of Bumble Bee Blinds’ 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, and adjusted EBITDA for the founder business, an entity owned by the brand’s founder and which subsequently executed a franchise agreement with the franchisor

• 2023 average ticket and close ratio for the founder business

• 2021 and 2022 gross sales for the founder business

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

Section I – Bumble Bee Blinds Franchise Costs

• Bumble Bee Blinds franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Fee:  $59,500
• Insurance (90 Days):  $2,500 to $5,000
• Tuition Fee:  $4,995
• Travel and Living Expenses While Training:  $1,500 to $3,500
• Opening Package:  $15,000 to $20,000
• Utilities (90 days):  $200 to $500
• Vehicles:  $13,295 to $15,344
• Licenses, Certificates, and Permits:  $0 to $2,000
• Professional Fees:  $0 to $5,000
• Technology Fee:  $2,375
• Call Center Fee:  $1,125 to $3,225
• Dues and Subscriptions:  $0 to $1,500
• 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 Bumble Bee Blinds Franchise Costs:  $163,599 to $196,048

Section II – Bumble Bee Blinds’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $59,500

• Royalty Fee:  the greater of (i) 8.5% of Gross Revenues Collected; or (ii) the Minimum Royalty Fee

• Brand Fund Contribution:  if and when established, the then-current Brand Fund Contribution amount, which shall not exceed 3% of weekly Gross Revenues Collected. The total sum of the Brand Fund Contribution and the Royalty, as a percentage of weekly Gross Revenues Collected, shall not exceed the then-current Royalty rate effective immediately prior to establishment of the Brand Fund.

• Local Advertising Deficiency:  payable only if you fail to perform the 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, on Local Advertising Expenditure Requirement.

• Brand Marketing Fee:  the then-current Brand Marketing Fee; currently, the Brand Marketing Fee is $15,000

• Digital Management Fee:  the then-current Digital Management Fee; currently, $1,000 per month

Section III – Number of Franchised and Company-Owned Bumble Bee Blinds 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:  2*
• Net Change:  +2

2023

• Outlets at the Start of the Year:  2*
• Outlets at the End of the Year:  17
• Net Change:  +15

* Two Outlets are owned and operated by Stephen Vest, Bumble Bee Blinds’ Founder. These two Outlets operated in a geographic area containing 5 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 Bumble Bee Blinds Franchise

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

• On July 05, 2022 HPB Blinds and Shutters LLC (the franchisor) purchased certain assets from OBS. OBS has operated a blinds and shutters installation business in Omaha, Nebraska and Lincoln, Nebraska since 2015 under the principal trademark “Omaha Blinds and Shutters.” OBS entered into two franchise agreements with the franchisor and rebranded the Founder Business to a Bumble Bee Blinds Business in October 2022.

• The Founder Business serves as Bumble Bee Blinds’ flagship outlet and served as the base from which the franchisor created the franchise model offered under the Disclosure Document. The Founder Business offers substantially similar products and services as the business you will operate under the Bumble Bee Blinds trademark.

• The Founder Business was in operation under the Bumble Bee Blinds trademark for the entire 2023 calendar year (the “Measurement Period”). During the Measurement Period, the Founder Business operated a business substantially similar to the franchised business offered under the Disclosure Document in an area that would encompass approximately 5 Protected Territories.

• This Item sets forth historical revenue and cost information for the Founder Business generated and incurred in connection with the Founder Business’s operations during the Measurement Period. The Founder Business provided the franchisor with unaudited financial information for the Measurement Period. The franchisor based the historical financial performance information presented in this Item 19 on this unaudited financial information and the franchisor did not audit or otherwise independently verify this information.

• Part 1 sets forth Gross Sales, Direct Cost of Goods and Services Sold, and certain Disclosed Expenses of the Founder Business during the Measurement Period, as well as certain Adjusted Expenses of the Founder Business during the Measurement Period.

• Part 2 sets forth Average Ticket, Close Ratio, Percent of Total Revenue – Shades, Percent of Total Revenue – Blinds, Install per Blind/Roller Shade, and Install for all other Products of the Founder Business during the Measurement Period.

• Part 3 sets forth Historical Performance of Revenue achieved by the Founder Business during the Measurement Period.

• The franchisor has not audited or independently verified the data submitted by the Founder Business and no assurance can be offered that the data does not contain inaccuracies that an audit might disclose.

Part 1 – Founder Business Financials During the Measurement Period (January 1, 2023 to December 31, 2023)

Gross Sales:  $1,534,831 (100.0%)

Direct Cost of Goods and Services Sold

• Subcontractor Costs:  $146,028 (9.5%)
• Materials:  $798,019 (52.0%)
• Total Direct Cost of Goods and Services Sold:  $944,047 (61.5%)

Gross Profit:  $590,784 (38.5%)

Disclosed Expenses

• Advertising and Promotion:  $80,996 (5.3%)
• Insurance Expense:  $3,332 (0.2%)
• Payroll Expenses:  $55,647 (3.6%)
• Rent, Utilities, and Trash:  $15,123 (1.0%)
• Merchant Fees and Bank Fees:  $14,874 (1.0%)
• Automobile, Repair, Maintenance, and Other:  $11,565 (0.8%)
• Miscellaneous Expense:  $3,591 (0.2%)
• Office Supplies:  $5,089 (0.3%)
• Dues, Subscriptions, Taxes, and Licenses:  $4,641 (0.3%)
• Total Disclosed Expenses:  $194,858 (12.7%)

Gross Profit Less Disclosed Expenses:  $395,926 (25.8%)

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

• Royalty Fee:  $130,461 (8.5%)
• Technology Fee and CRM Fee:  $9,504 (0.6%)
• Call Center Fee:  $12,546 (0.8%)
• Digital Management Fee:  $12,000 (0.8%)
• Annual Conference Fee:  $1,000 (0.1%)
• Bookkeeping Fee:  $7,239 (0.5%)
• Total Adjusted Expenses:  $172,750 (11.3%)

Total Disclosed Expenses and Adjusted Expenses:  $367,608 (24.0%)

Adjusted EBITDA:  $223,176 (14.5%)

• “Gross Sales” is defined as the total revenue less sales tax, discounts, allowances, and returns during the Measurement Period.

• “Direct Costs of Goods and Services Sold” is defined as the direct non-managerial and non-administrative cost of goods sold, materials, and labor incurred in directly performing and/or installing Approved Services and Products resulting in Gross Sales during the Measurement Period. Direct Cost of Goods and Services Sold do not include managerial expenses, field management, administrative expenses, Disclosed Expenses, operating expenses, or general expenses including, but not limited to, credit card processing or bank fees.

• “Subcontractor Costs” is defined as the reported cost of subcontractors used in the operation of the business during the Measurement Period.

• “Materials” is defined as the reported cost of materials used in the operation of the business during the Measurement Period.

• “Total Direct Cost of Goods and Services Sold” is defined as the sum of Subcontractor Costs and Materials during the Measurement Period.

• “Gross Profit” is defined as Gross Sales less Total Direct Costs of Goods and Services Sold during the Measurement Period.

• “Disclosed Expenses” is defined as a limited selection of historical expenses incurred as disclosed in this table to this Item 19 during the Measurement Period. Franchisees may incur additional expenses depending on how they operate their franchise from a staff perspective.

• “Advertising and Promotion” is defined as the costs associated with marketing, advertising, and promotion during the Measurement Period.

• “Insurance Expense” is defined as the costs of insurance required for the operation of the business, including, but not limited to, general liability insurance, umbrella insurance, workers compensation insurance, professional liability, contractors, and any other insurance required in the operation of the business during the Measurement Period.

• “Payroll Expense” is defined as the reported expenses for payroll and wages for labor used in the operation of the business during the Measurement Period.

• “Rent, Utilities, and Trash” is defined as the costs associated with renting a facility to serve as an office and warehouse to store the inventory, equipment, and supplies, including utility costs such as power, water, gas, trash, and any other utilities that service the rented facility for the operation of the business during the Measurement Period.

• “Merchant Fees and Bank Fees” is defined as the fees associated with the merchant and bank service providers incurred by the business during the Measurement Period.

• “Automobile Repair, Maintenance, and Other” is defined as the costs associated with the repair and general maintenance of vehicles required in the operation of the business, as well as other maintenance items incurred in the operation of the business during the Measurement Period.

• “Miscellaneous Expense” is defined as the costs associated with miscellaneous expenses in the operation of the business during the Measurement Period.

• “Office Supplies” is defined as the items used by the business to run and operate the business, such as pens, paper, notebooks, envelops, folders, tape, glue, markers, and any other related administrative expenses pertaining to office supplies incurred in the operation of the business during the Measurement Period.

• “Dues, Subscriptions, Taxes, and Licenses” is defined as the costs of dues, subscriptions (and related software) for or related to local networking groups or other professional, business, and industry organization, as well as the costs of taxes, permits, licenses, certificates, and registrations required for the operation of the business during the Measurement Period. These costs may vary by geographic location or market circumstances.

• “Total Disclosed Expenses” is defined as the sum of: (i) Advertising and Promotion; (ii) Insurance Expense; (iii) Payroll Expense; (iv) Rent, Utilities, and Trash; (v) Merchant Fees and Bank Fees; (vi) Automobile Repair, Maintenance, and Other; (vii) Miscellaneous Expense; (viii) Office Supplies; and (ix) Dues, Subscriptions, Taxes, and Licenses during the Measurement Period.

• “Adjusted Expenses” is defined as certain expenses not paid by Bumble Bee Blinds’ Founder during the Measurement Period, but are incurred by the Franchisee, including but not limited to the Royalty Fee, Technology Fee, Call Center Fee, Digital Management Fee, and Annual Conference Fee, as described below.

• “Royalty Fee” is defined as royalty fees paid to Bumble Bee Blinds. This fee was calculated based upon a royalty fee of 8.5% of Gross Revenues Collected in the operation of the business during the Measurement Period.

• “Technology and CRM Fee” is defined as fees paid to Bumble Bee Blinds to cover costs associated with system network functions, updating microsites, data reporting, customer relationship management, call center interfacing software, and various software programs that the Franchisee must utilize in the operation of the franchised business.

• “Call Center Fee” is defined as the fee charged by Bumble Bee Blinds’ affiliate, HPB Call Center, for all Call Center Services received by the Franchisee. This fee does not include scheduled lead fees.

• “Digital Management Fee” is defined as the fee charged by Bumble Bee Blinds’ affiliate, HPB Franchise Marketing d/b/a Franchise Rocket, to cover the costs of digital marketing and website management.

• “Annual Conference Fee” is defined as the costs to attend the required annual conference held by Bumble Bee Blinds.

• “Bookkeeping Fee” is defined as the fee charged for bookkeeping services by Bumble Bee Blinds’ designated vendor.

• “Total Adjusted Expenses” is defined as the sum of: (i) Royalty Fee; (ii) Technology Fee; (iii) Call Center Fee; (iv) Digital Management Fee; and (v) Annual Conference Fee.

• “Total Disclosed Expenses and Adjusted Expenses” is defined as the sum of: (i) Total Disclosed Expenses; and (ii) Adjusted Expenses.

• “Adjusted EBITDA” is defined as Gross Profit less Total Disclosed Expenses and Adjusted Expenses.

Part 2 – Founder Business Key Performance Indicators (2023)

• Average Ticket:  $4,500
• Close Ratio:  70%

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

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

Part 3 – Founder Business Historical Performance (2021 and 2022)

Gross Sales

• 2021:  $1,163,505
• 2022:  $1,564,279

• “Gross Sales” is defined as total revenue less sales tax, discounts, allowances, and returns during the stated calendar year.

• The Item 19 historical financial performance representation included in this Item includes certain reported performance information reported by the Founder Business during the Measurement Period only. It is not a representation of what you can expect to achieve in connection with the operation of a Bumble Bee Blinds Business.

• This analysis is not a representation of the operating costs and expenses that you will incur in operating your Bumble Bee Blinds Business. Operating costs and expenses may vary substantially from business to business.

• Interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from business to business, depending on the amount and kind of financing you obtain to establish your Bumble Bee Blinds Business.

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

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