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

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

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

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

Section V – Presentation and analysis of NerdsToGo’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 for the 25 NerdsToGo franchise locations that were in continuous operation for the entire 2023 calendar year (excluding locations that temporarily closed, had limited operations with a single employee, or did not report gross revenue in 2023), by quartile

• 2023 average gross revenue, cost of goods sold, operating expenses, EBITDA, franchise principal compensation, and total franchisee principal’s benefit for the 7 NerdsToGo franchise locations that were in continuous operation for the entire 2023 calendar year and submitted financial statements to NerdsToGo

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

Section I – NerdsToGo Franchise Costs

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

• Initial Franchise Fee:  $49,750
• Vehicle Lease:  $0 to $2,400
• Vehicle Graphics for One Branded Vehicle:  $200 to $3,400
• Equipment, Tools, and Systems:  $2,480 to $2,735
• Deposits:  $700 to $5,457
• Leasehold Improvements:  $700 to $4,400
• Furniture, Fixtures, Cabinetry, and Displays:  $90 to $8,739
• Administrative Supplies:  $200 to $750
• Insurance:  $1,125 to $3,500
• Signage and Graphics:  $1,819 to $7,416
• Professional Fees (lawyer, accountant, etc.):  $2,500 to $6,726
• Marketing Introduction Plan:  $11,000
• Marketing Materials and Uniforms:  $1,105 to $2,036
• Lead Generation (for the first 3 months):  $7,950
• Travel, Lodging, and Meals for Initial Training:  $500 to $1,550
• Additional Funds (for First 4 Months):  $35,000 to $55,000
• Total Estimated NerdsToGo Franchise Costs:  $115,119 to $172,809

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

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

• Initial Franchise Fee:  $49,750

• Royalty Fee:  3.5% of Gross Sales for your first 12 months of operation. Beginning your 13th month of operation through the end of the term of the Franchise Agreement, the greater of $1,000 or 7% of Gross Sales.

• Marketing Fund Contribution:  1% of Gross Sales for your first 12 months of operation. Beginning your 13th month of operation through the end of the term of the Franchise Agreement, 2% of Gross Sales.

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

Franchised

2021

• Outlets at the Start of the Year:  25
• Outlets at the End of the Year:  30
• Net Change:  +5

2022

• Outlets at the Start of the Year:  30
• Outlets at the End of the Year:  32
• Net Change:  +2

2023

• Outlets at the Start of the Year:  32
• Outlets at the End of the Year:  34
• Net Change:  +2

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:  1
• Net Change:  0

Section IV – News Updates on the NerdsToGo Franchise

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

• On December 31, 2023, there were 34 NerdsToGo Franchised Offices open and in operation and 25 were in continuous operation during the entire calendar year ending December 31, 2023.

• The table below shows historical financial performance for the 25 NerdsToGo Offices that were in continuous operation for the entire 2023 calendar year and excludes NerdsToGo Offices that temporarily closed, had limited operations with a single employee, or did not report Gross Revenue in 2023.

• As used in this Item 19, “Gross Revenue” is defined as the grand total of all sale transactions reported in a period, less sales tax, discounts, allowances, and returns. Gross Revenue is generated primarily (but not entirely) from four categories: (i) on-site service calls, (ii) on-site product sales, (iii) walk-in service, and (iv) walk-in product sales. “On-site” refers to service and sales performed at the customer’s location.

Part 1 – Systemwide Gross Revenue – Franchised NerdsToGo Offices Operating for the Entire 2023 Calendar Year

Total Reporting Businesses

• Number of Reporting Businesses:  25
• Highest Gross Revenue:  $1,088,570
• Lowest Gross Revenue:  $51,116
• Average Gross Revenue:  $331,305
• Number at or Above Average:  9
• Percentage at or Above Average:  36.0%
• Median Gross Revenue:  $275,270

Top Quartile Reporting Businesses

• Number of Reporting Businesses:  6
• Highest Gross Revenue:  $1,088,570
• Lowest Gross Revenue:  $400,099
• Average Gross Revenue:  $681,181
• Number at or Above Average:  3
• Percentage at or Above Average:  50.0%
• Median Gross Revenue:  $641,338

3rd Quartile Reporting Businesses

• Number of Reporting Businesses:  6
• Highest Gross Revenue:  $390,819
• Lowest Gross Revenue:  $279,859
• Average Gross Revenue:  $334,452
• Number at or Above Average:  3
• Percentage at or Above Average:  50.0%
• Median Gross Revenue:  $338,790

2nd Quartile Reporting Businesses

• Number of Reporting Businesses:  6
• Highest Gross Revenue:  $275,270
• Lowest Gross Revenue:  $201,691
• Average Gross Revenue:  $239,810
• Number at or Above Average:  3
• Percentage at or Above Average:  50.0%
• Median Gross Revenue:  $241,021

Bottom Quartile Reporting Businesses

• Number of Reporting Businesses:  7
• Highest Gross Revenue:  $181,608
• Lowest Gross Revenue:  $51,116
• Average Gross Revenue:  $107,138
• Number at or Above Average:  4
• Percentage at or Above Average:  57.1%
• Median Gross Revenue:  $120,333

• The average Gross Revenue figures included in this analysis are based on sales reports submitted to NerdsToGo by each franchisee. The figures in the sales reports have not been audited and NerdsToGo has not undertaken to otherwise independently verify (i) the accuracy of such information or (ii) whether such information was prepared in accordance with generally accepted accounting principles.

Part 2 – Results of 2023 Financial Survey

• In addition to the average Gross Revenue analysis for 2023 presented above, certain expenses expressed as a percentage of Gross Revenue have been provided based on the experience of certain of the foregoing NerdsToGo Offices in 2023 described below. The expense figures were extracted from the 2023 financial statements submitted by the NerdsToGo franchisees included in NerdsToGo’s 2023 Financial Survey.

• NerdsToGo has not been provided with expense data from 18 of the 25 NerdsToGo Offices that were open and in continuous operation during the 2022 calendar year. In each instance, this was primarily due to the proximity of year-end to the time of compilation of these numbers and 18 such NerdsToGo Offices were not included in the expense figures provided herein.

• You should note that expense data for the 7 NerdsToGo Offices included in the 2023 compilation relate to operations during the 2023 calendar year.

• The information relating to the operations expenses provided by the NerdsToGo Offices and used by NerdsToGo in determining the numerical values provided has not been audited and such information has not necessarily been prepared on a basis consistent with generally accepted accounting principles.

• NerdsToGo is unable to verify whether the expense data submitted by each NerdsToGo Office for each separately provided expense item appropriately reflect the types of expenses which are ordinarily incurred by NerdsToGo Offices, and which should be included in the item according to generally accepted accounting principles.

• Each percentage given on this analysis reflects the mean average of the total percentages for the applicable expense item provided by the reporting NerdsToGo Offices (i.e., the aggregate sum of the expense percentages of all reporting NerdsToGo Offices divided by the number of reporting NerdsToGo Offices). The expense percentages for the various expense items provided by each reporting NerdsToGo Office reflect that NerdsToGo Office’s expenses as a percentage of its Gross Revenue.

• No percentage given on this analysis is the actual expense percentage experienced by any one NerdsToGo Office and the actual expense percentages for the reporting NerdsToGo Office on any expense item may vary significantly.

• The following expenses represent the major expense items for a NerdsToGo Office and should not be considered the only expenses that a NerdsToGo Office will incur.

2023 Year-End Average P&L for NerdsToGo Offices (7 Locations Reporting)

Gross Revenue:  $542,961 (100.0%)

Cost of Goods Sold:  $157,068 (28.9%)

Operating Expenses

• Labor, including Franchisee Principal Compensation:  $190,511 (35.1%)
• Advertising:  $26,636 (4.9%)
• Facilities:  $25,686 (4.7%)
• Royalties:  $45,731 (8.4%)
• Other General and Administrative Expenses:  $59,019 (10.9%)

EBITDA:  $10,723 (2.0%)

Franchise Principal Compensation:  $68,551 (12.6%)

Total Franchisee Principal’s Benefit:  $97,068 (17.9%)

• The highest and lowest reported Gross Revenue for the 7 NerdsToGo Offices that provided 2023 financial statements were $1,082,636 and $310,677, respectively.

• The amount of gross revenue realized, and expenses incurred will vary from unit to unit. Gross revenue and expenses at franchisee’s NerdsToGo Office will be directly affected by many additional factors not noted above, including, without limitation, the NerdsToGo Office’s geographic location, competition in the market, the presence of other NerdsToGo Offices, the quality of management, the effectiveness of sales and marketing, and the prices charged for products and services sold at the NerdsToGo Office.

• Further, the Franchise Agreement to which each franchisee included in this analysis is subject is different from the Franchise Agreement attached to the current Disclosure Document. Among other terms, the Franchise Agreement attached to the current Disclosure Document requires an initial franchise fee of $49,750 and a continuing Service Fee of 7% on Gross Revenue. This analysis, therefore, should only be used as a reference for you to use in conducting your own analysis.

Part 3 – Contribution of B2B “Nerd Assure” Program

• In September 2021, NerdsToGo launched its business-to-business (“B2B”) focused NerdAssure program. This program provides remote monitoring and other services for B2B customers and focuses on longer-term recurring monthly charges for these services.

• As of December 31, 2023, 20 NerdsToGo Offices had opted in to the NerdAssure Program.

• For the period between January 1, 2023, and December 31, 2023, the average monthly recurring revenue per NerdsToGo Office from the NerdAssure Program was $10,617 (6 or 30.0% of which met or exceeded that average), with a median revenue per NerdsToGo Office of $7,826. The lowest revenue reported was $1,435 and the highest reported revenue was $53,078.

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

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