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

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

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

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

Section V – Presentation and analysis of TeamLogic IT’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, by quartile, for the 150 TeamLogic IT franchisees (representing 247 businesses) who had operated for at least 24 months as of December 31, 2023 and who reported their gross revenue to TeamLogic IT during the reporting period

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

Section I – TeamLogic IT Franchise Costs

• Initial Franchise Fee:  $40,000 to $49,500
• Help Desk Service Fee:  $1,200 (subject to change by vendor)
• Vehicle Lease and Graphics:  $0 to $450 (lease)/$100 to $3,000 (graphics)
• Initial Equipment:  $4,125 to $7,400
• Real Estate Leasehold Improvements, Monthly Rent:  $900 to $1,700
• Additional Funds for 10 to 12 Months:  $60,540 to $78,092
• Total Estimated TeamLogic IT Franchise Costs:  $106,865 to $141,342

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

• Initial Franchise Fee:  $49,500

• Continuing Franchise Fees:  7% of Gross Sales starting the day you open. Beginning with the 13th month, you pay the greater of 7% of Gross Sales or the monthly minimum of $1,000 a month until the end of the term of the contract.

• Advertising Fund:  there are no Advertising Fund Fees due in the first 12 months. For the remainder of the contract, the greater of 1.2% of gross sales or $200 per month is due and payable to the TeamLogic IT Advertising Fund.

• Advertising Cooperative Association Fee:  ranges from $0 to $500 monthly; determined by local Advertising Cooperative Association (“ACA”)

• Local Marketing:  $2,500 per month (not including Ad Fund fees)

Section III – Number of Franchised and Company-Owned TeamLogic IT Outlets

Franchised

2021

• Outlets at the Start of the Year:  221
• Outlets at the End of the Year:  243
• Net Change:  +22

2022

• Outlets at the Start of the Year:  243
• Outlets at the End of the Year:  266
• Net Change:  +23

2023

• Outlets at the Start of the Year:  266
• Outlets at the End of the Year:  282
• Net Change:  +16

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 TeamLogic IT Franchise

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

Gross Revenues for 2023

1st Quartile

• Number of Qualified Franchisees:  38
• Highest Gross Revenue in Quartile:  $16,182,910
• Lowest Gross Revenue in Quartile:  $1,338,518
• Average Gross Revenue in Quartile:  $3,154,049
• Number Exceeding Average Gross Revenue in Quartile:  9
• Percentage Exceeding Average Gross Revenue in Quartile:  24%
• Median Gross Revenue in Quartile:  $2,295,473

2nd Quartile

• Number of Qualified Franchisees:  38
• Highest Gross Revenue in Quartile:  $1,325,866
• Lowest Gross Revenue in Quartile:  $659,727
• Average Gross Revenue in Quartile:  $916,737
• Number Exceeding Average Gross Revenue in Quartile:  17
• Percentage Exceeding Average Gross Revenue in Quartile:  45%
• Median Gross Revenue in Quartile:  $815,133

3rd Quartile

• Number of Qualified Franchisees:  37
• Highest Gross Revenue in Quartile:  $646,011
• Lowest Gross Revenue in Quartile:  $339,237
• Average Gross Revenue in Quartile:  $488,417
• Number Exceeding Average Gross Revenue in Quartile:  19
• Percentage Exceeding Average Gross Revenue in Quartile:  51%
• Median Gross Revenue in Quartile:  $490,099

4th Quartile

• Number of Qualified Franchisees:  37
• Highest Gross Revenue in Quartile:  $328,466
• Lowest Gross Revenue in Quartile:  $27,223
• Average Gross Revenue in Quartile:  $183,158
• Number Exceeding Average Gross Revenue in Quartile:  20
• Percentage Exceeding Average Gross Revenue in Quartile:  54%
• Median Gross Revenue in Quartile:  $198,951

• As of December 31, 2023, TeamLogic IT had 183 total franchisees who operated 282 businesses. These franchisees generated $183 million of total network sales.

• Of these total franchisees, 150 franchisees representing 247 businesses were categorized as “Qualified Franchisees,” franchisees who had operated for at least 24 months as of December 31, 2023 and who reported their Gross Revenue to TeamLogic IT during the Reporting Period. These franchisees generated a total of $180 million of network sales.

• The financial performance representation in the above chart covers the Gross Revenue during the 12-month period from January 1, 2023 until December 31, 2023 (the “Reporting Period”) for the franchisees who operated their businesses for the entire Reporting Period and for at least 24 months as of December 31, 2023, and who reported their Gross Revenue to TeamLogic IT in the Reporting Period.

• This financial performance representation does not include the results of the 33 franchisees that were operating for less than 24 months as of December 31, 2023, or the 4 franchisees that closed during the Reporting Period.

• The Qualified Franchisees operate in various markets across the country. The average length of time that the Qualified Franchisees had operated under the System as of December 31, 2023, was 7.10 years.

• Some Qualified Franchisees (including 26 in the first quartile, 9 in the second quartile, 3 in the third quartile, and 2 in the fourth quartile of Gross Revenue) operated multiple businesses during the Reporting Period, and 21 of the Qualified Franchisees (including 18 in the first quartile, 3 in the second quartile, 0 in the third quartile, and 0 in the fourth quartile of Gross Revenue) operated 3 or more businesses.

• Neither TeamLogic IT nor its affiliates operate any TeamLogic IT Businesses.

• “Gross Revenue” is defined as all revenue from all services that a Qualified Franchisee derives from operating all of its Businesses, and includes hourly services, managed services, product resale, and professional project services, commission and agency revenue, reseller revenue, and other (cloud services, technical support, break/fix services, training, consulting services, and other technical services), whether onetime or recurring, and commissions paid by alliance partners and revenue from hardware or software sales. This excludes freight and sales tax.

• TeamLogic IT is a franchised service operation that relies on a business-client base that must be built over time. It may take 2 years or more to create an operation that offers a statistically accurate representation. Given that some franchisees do not complete the establishment of their Businesses in the first 12 months, to include operations younger than 24 months would show a distorted and unrealistic picture of business revenues. TeamLogic IT offers certain discounts and Minimum Continuing Franchise Fee suspensions for the entire first year in recognition that this time is spent building a client base.

• In addition, some franchisees have converted existing independent IT service businesses into TeamLogic IT Businesses with a full and active client base, while other franchisees are starting new businesses with no clients. These outlets present starkly different revenue profiles in their first year of operations compared to traditional, new franchises. Including only franchisees that have been operational for at least 24 months, starts to balance the inherent performance and statistical discrepancies in this aspect of the franchisees’ Gross Revenue figures.

• Because a TeamLogic IT Business franchisee’s revenue depends primarily on a recurring base of clients developed over a period of time, Qualified Franchisees who operate for longer periods, and/or who operate multiple TeamLogic IT Businesses/Territories, typically realize higher (in some cases significantly higher) Gross Revenue than Qualified Franchisees who have operated for shorter periods or who operate only one Business/Territory.

• Each of the Qualified Franchisees offers primarily the same products and services that TeamLogic IT expects new TeamLogic IT Business franchisees to offer, and each receives primarily the same services from TeamLogic IT that it expects new franchisees to receive. The Qualified Franchisees also face generally the same competition from other similar businesses that TeamLogic IT expects new franchisees will face.

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

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