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

Section I – Estimated initial investment (franchise costs) for The Brothers That Just Do Gutters franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Brothers That Just Do Gutters franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned The Brothers That Just Do Gutters 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 Brothers That Just Do Gutters franchise opportunity

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

• 2021, 2022, and 2023 actual gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, and adjusted profit for the company-owned outlet operating from Poughkeepsie, New York since 1999

• 2021, 2022, and 2023 average gross sales, direct cost of goods and services sold, gross profit, disclosed expenses, and adjusted profit for the operational franchise outlets that were open and in operation prior to the commencement of the applicable calendar year

• 2021, 2022, and 2023 average percentage of annual gross sales from repeat customers for the company-owned outlet and new and operational franchise outlets that were open and in operation during the applicable calendar year

Section VI – Key ratios, comparables, computations, and analyses for The Brothers That Just Do Gutters franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Brothers That Just Do Gutters Franchise Costs

• The Brothers That Just Do Gutters (single territory) franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Construction and Leasehold Improvements:  $1,500 to $4,000
• Storage Unit:  $0 to $1,000
• Equipment:  $13,000 to $20,000
• Initial Inventory:  $1,000 to $3,000
• Computer, Software, and Point-of-Sale System:  $2,500 to $3,000
• Service Vehicle:  $5,500 to $11,500
• Merchandise Kit:  $3,500 to $5,500
• Start-Up Marketing for 3 Months:  $15,000 to $35,000
• Insurance Deposits for 3 Months:  $2,500 to $4,000
• Travel for Initial Training:  $2,500 to $4,000
• Professional Fees:  $1,500 to $3,000
• Licenses and Permits:  $750 to $1,500
• Additional Funds for 3 Months:  $45,000 to $60,000
• Total Estimated The Brothers That Just Do Gutters Franchise Costs:  $143,750 to $205,000

Section II – The Brothers That Just Do Gutters’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The Brothers That Just Do Gutters’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Royalty:  greater of 6% of Gross Sales or Minimum Weekly Royalty Fee Requirement ($125 per week per Territory). The Royalty Rate is 10% of Gross Sales for Out of Territory Customers.
• Brand Development Fund:  2% of Gross Sales
• Franchisee Directed Local Marketing:  3% of Gross Sales per month, but not less than $2,000 per month, plus $500 per month for each Additional Territory
• Local and Regional Advertising Cooperatives:  as established by cooperative members

Section III – Number of Franchised and Company-Owned The Brothers That Just Do Gutters Outlets

Franchised

2021

• Outlets at the Start of the Year:  12
• Outlets at the End of the Year:  39
• Net Change:  +27

2022

• Outlets at the Start of the Year:  39
• Outlets at the End of the Year:  93
• Net Change:  +54

2023

• Outlets at the Start of the Year:  93
• Outlets at the End of the Year:  110
• Net Change:  +17

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 Brothers That Just Do Gutters Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Brothers That Just Do Gutters Franchise (Item 19, 2024 FDD)

Select Definitions

• Gross Sales means the total revenue derived by each Outlet less sales tax, discounts, allowances, and returns.

• Direct Cost of Goods and Services Sold means the direct non-managerial and non-administrative cost of goods sold and labor incurred by an Outlet in directly performing and/or installing Approved Services and Products resulting in Gross Sales. Direct Cost of Goods and Services Sold does not include managerial expenses, including field management, administrative expenses, Disclosed Expenses, operating expenses, or general expenses including, but not limited to, credit card processing and bank fees.

• Disclosed Expenses refers to a limited selection of expenses as disclosed in the tables to this Item 19, comprised of the following select expense categories: rent, utilities, facility maintenance, marketing, office supply expenses, service vehicle expenses, recruiting, and franchisor related charges for Contact Center Fees, Technology Fees, Brand Development Fund Fees, and Royalty Fees.

• Adjusted Profit means Direct Gross Profit less Disclosed Expenses. Adjusted Profit is not equal to net profit or income and, except as to Direct Cost of Goods and Services Sold and Disclosed Expenses, does not include the deduction of all other expenses incurred by a Brothers Gutters Business including, but not limited to, other operating expenses, interest, taxes, depreciation, and amortization.

• New Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that for the first time opened and commenced operations during the Calendar Year.

• Operational Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year.

• Qualified Single-Family Household refers to and means a single-family household where the estimated annual household income exceeds $60,000.

Bases and Assumptions

• The financial information was not prepared on a basis consistent with generally accepted accounting principles during the respective Calendar Years. Data for the Franchise Outlets are based on financial information reported to the franchisor by its franchisees. The information in this analysis has not been audited, is based on historical financial data, and is not a forecast or projection of future financial performance.

Part 1 – Company-Owned Outlet

• The Brothers That Just Do Gutters has one Company-Owned Outlet operating from Poughkeepsie, New York.

• The Company-Owned Outlet has been in operation since 1999 and operates in a market where The Brothers That Just Do Gutters brand maintains significant awareness among consumers and a significant market presence for over 20 years.

• The Territory in which the Company-Owned Outlet operates includes approximately 320,174 Qualified Single-Family Households, with an Operating Territory comprising four Territories that have been supplemented with additional Qualified Single-Family Households.

• Below the franchisor reports select financial performance data for its Company-Owned Outlet for the 2021, 2022, and 2023 Calendar Years.

2021 Calendar Year

• Gross Sales:  $4,247,291 (100%)
• Less: Direct Cost of Goods Sold and Services Sold:  $2,313,960 (54.5%)
• Direct Gross Profit:  $1,933,331 (45.5%)
• Less: Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees):  $1,038,546 (24.5%)
• Adjusted Profit:  $894,785 (21.1%)

2022 Calendar Year

• Gross Sales:  $4,586,679 (100.0%)
• Less: Direct Cost of Goods Sold and Services Sold:  $2,311,321 (50.4%)
• Direct Gross Profit:  $2,275,358 (49.6%)
• Less: Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees):  $1,134,769 (24.7%)
• Adjusted Profit:  $1,140,589 (24.9%)

2023 Calendar Year

• Gross Sales:  $4,518,709 (100.0%)
• Less: Direct Cost of Goods Sold and Services Sold:  $2,233,956 (49.4%)
• Direct Gross Profit:  $2,284,753 (50.6%)
• Less: Disclosed Expenses (see definition above for list of expenses included; includes expenses not paid by Company-Owned Outlet but charged to franchisees):  $1,149,801 (25.4%)
• Adjusted Profit:  $1,134,952 (25.1%)

Part 2 – Operational Franchise Outlets

• During the 2021 Calendar Year, there were a total of 11 Operational Franchise Outlets and 28 New Franchise Outlets.

• During the 2022 Calendar Year, there were a total of 33 Operational Franchise Outlets and 60 New Franchise Outlets. The franchisor does not include data for three Operational Franchise Outlets that did not maintain accurate and reliable financial records during the 2022 Calendar Year.

• During the 2023 Calendar Year, there were a total of 71 Operational Franchise Outlets and 27 New Franchise Outlets. The franchisor does not include any data for the 27 New Franchise Outlets that opened during the 2023 Calendar Year and it does not include data for 11 Operational Franchise Outlets that did not maintain accurate and reliable financial records or failed to provide it with financial records for the 2023 Calendar Year.

• All Operational Franchise Outlets operate within the equivalent of a single Territory supplemented with additional Qualified Single-Family Households or multiple Territories with each Operational Franchise Outlet’s aggregate territory size ranging from 75,000 to 900,000 Qualified Single-Family Households.

2021 Calendar Year (11 Operational Franchise Outlets)

• Average Gross Sales:  $1,715,217 (100%)
• Average Direct Cost of Goods Sold and Services Sold:  $815,722 (47.6%)
• Average Gross Profit:  $899,495 (52.4%)
• Average Disclosed Expenses (see definition above for list of expenses included):  $382,238 (22.3%)
• Average Adjusted Profit:  $517,257 (30.2%)

2022 Calendar Year (30 Operational Franchise Outlets)

• Average Gross Sales:  $1,092,932 (100%)
• Average Direct Cost of Goods Sold and Services Sold:  $511,015 (46.8%)
• Average Gross Profit:  $549,772 (50.3%)
• Average Disclosed Expenses (see definition above for list of expenses included):  $301,406 (27.6%)
• Average Adjusted Profit:  $257,231 (23.5%)

2023 Calendar Year (60 Operational Franchise Outlets)

• Average Gross Sales:  $1,171,375 (100%)
• Average Direct Cost of Goods Sold and Services Sold:  $563,997 (48.1%)
• Average Gross Profit:  $607,379 (51.9%)
• Average Disclosed Expenses (see definition above for list of expenses included):  $320,418 (27.4%)
• Average Adjusted Profit:  $286,961 (24.5%)

Part 3 – Percentage of Annual Gross Sales From Repeat Customers

• During the 2022 Calendar Year, the Company-Owned Outlet and 25 of the Operational Franchise Outlets switched CRM systems from the original CRM system (the “Original CRM System”) to a new system (the “New CRM System”). Mid-way through the 2022 Calendar Year, The Brothers That Just Do Gutters decided to require that all of the Outlets switch back to the Original CRM System due to the unreliability of the New CRM System. Due to the multiple changes, The Brothers That Just Do Gutters could not obtain accurate and reliable data for the 2022 Calendar Year for its Company-Owned Outlet and 25 of its Operational Franchise Outlets.

• As such, in Part 3, The Brothers That Just Do Gutters reports 2022 Calendar Year data only for those 10 Outlets that have used the Original CRM System for the 2022 Calendar Year, and The Brothers That Just Do Gutters excludes the data for Outlets that used the New CRM System for any portion of the 2022 Calendar Year.

Company-Owned Outlet

• 2021 Percentage of Annual Gross Sales From Repeat Customers:  10.0%
• 2022 Percentage of Annual Gross Sales From Repeat Customers:  N/A
• 2023 Percentage of Annual Gross Sales From Repeat Customers:  6%

Average for Operational Franchise Outlets

• 2021 Percentage of Annual Gross Sales From Repeat Customers:  4.9%
• 2022 Percentage of Annual Gross Sales From Repeat Customers:  4.4%
• 2023 Percentage of Annual Gross Sales From Repeat Customers:  2.2%

Section VI – The Brothers That Just Do Gutters Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️