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

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

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

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

Section V – Presentation and analysis of Zoom Drain’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, high, and low monthly gross sales generated by the 25 Zoom Drain franchisees operating less than 12 months over the 2023 calendar year, split into thirds

• 2023 average, median, high, and low annual gross sales generated by the 9 Zoom Drain franchisees operating between 12 and 24 months over the 2023 calendar year, split into thirds

• 2023 average, median, high, and low annual gross sales generated by the 12 Zoom Drain franchisees operating more than 24 months over the 2023 calendar year, split into thirds

• 2021, 2022, and 2023 total gross sales generated by the Zoom Drain franchisees and affiliate-owned locations that operated for any length of time in 2023
  

• 2023 average, median, high, and low gross sales per job for the 46 Zoom Drain franchisees and 3 affiliate-owned locations that operated for any length of time in 2023, split into thirds

• 2023 total gross sales, cost of goods sold, gross profit, operating expenses, and estimated earnings for the 2 Zoom Drain affiliate-owned locations (operating in 3 territories) during the calendar year 2023

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

Section I – Zoom Drain Franchise Costs

• Initial Franchise Fee:  $49,500
• Payroll:  $65,116 to $78,139
• Vehicles and Equipment, Initial Small Tools, and Inventory of Supplies:  $12,600 to $185,120
• Opening Marketing, Brand Fund, and Local Advertising Requirement:  $26,100 to $31,320
• Building Lease, Improvements, Utilities, Supplies:  $25,200 to $30,240
• Maintenance, Fuel, Insurance, and Tolls:  $4,830 to $5,796
• Recruiting, Hiring, and Uniforms:  $5,850 to $7,020
• Office Supplies, Furniture, and Equipment:  $5,150 to $6,180
• Phones, Computer, Technology Expenses:  $7,650 to $9,180
• Business Licenses and Permits:  $1,120 to $9,344
• Travel, Lodging for Training:  $9,300 to $11,160
• Professional Fees:  $3,900 to $4,680
• Additional Funds (3 months):  $43,302 to $57,962
• Total Estimated Zoom Drain Franchise Costs:  $259,618 to $485,641

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

• Initial Franchise Fee:  $49,500 to $119,500; plus $0.16 per additional person within a Territory if you wish to purchase one or more Territories with a population greater than 300,000 per Territory

• Royalty Fee:  during the first 12 months from the execution of your Franchise Agreement, you are required to pay Zoom Drain a Royalty Fee equal to 6% of Gross Sales. Starting 13 months from the execution of the Franchise Agreement, you are required to pay Zoom Drain a Royalty Fee equal to the greater of (i) 6% of Gross Sales, or (ii) $1,000 per Territory per month.

• Brand Fund Contribution:  2% of Gross Sales per month

• Local Advertising Requirement:  your Local Advertising Requirement will be $1,000 per Territory per month. If you operate in multiple Territories under a single Franchise Agreement, then you must spend $1,000 per Territory per month.

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

Franchised

2021

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  17
• Net Change:  0

2022

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  51
• Net Change:  +34

2023

• Outlets at the Start of the Year:  51
• Outlets at the End of the Year:  123
• Net Change:  +72

Company-Owned

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section IV – News Updates on the Zoom Drain Franchise

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

• As of December 31, 2023, there were 46 franchisees (each, a “Franchisee”) operating in 123 Territories, and two affiliate-owned locations (each, an “Affiliate-Owned Location”) operating in three Territories.

• This Item sets forth certain historical data submitted to Zoom Drain by its Franchisees and Affiliate-Owned Locations.

Part 1 – Average, Median, High, and Low Monthly Gross Sales Generated by Franchisees Operating Less Than 12 Months Over the 2023 Calendar Year

• Part 1 of this Item discloses the average, median, high, and low monthly Gross Sales generated by 25 Franchisees over the 2023 calendar year that have been operating for less than 12 months, split into thirds.

Top Third

• Number of Franchisees:  8
• Average Monthly Gross Sales:  $37,169
• Median Monthly Gross Sales:  $36,749
• High Average Monthly Gross Sales:  $59,038
• Low Average Monthly Gross Sales:  $32,492
• Number That Met or Exceeded Average Gross Sales:  6 (75%)

Middle Third

• Number of Franchisees:  8
• Average Monthly Gross Sales:  $26,446
• Median Monthly Gross Sales:  $26,696
• High Average Monthly Gross Sales:  $30,935
• Low Average Monthly Gross Sales:  $21,390
• Number That Met or Exceeded Average Gross Sales:  4 (50%)

Bottom Third

• Number of Franchisees:  9
• Average Monthly Gross Sales:  $16,593
• Median Monthly Gross Sales:  $17,853
• High Average Monthly Gross Sales:  $20,961
• Low Average Monthly Gross Sales:  $5,812
• Number That Met or Exceeded Average Gross Sales:  5 (55%)

• The term “Gross Sales” means the total amount of all sales of products and services sold from, though, or in connection with the Franchised Business, whether for cash, on credit, barter or otherwise, exclusive of applicable sales, use or service taxes.

• In Part 1, if a Franchisee opened in the middle of a month, that month was excluded from the calculations set forth in Part 1. For example, if a Franchisee opened on February 15, then February was excluded from the calculations.

• Of the Franchisees set forth in Part 1, the median number of Territories owned by a Franchisee is three and the median population is 940,549.

Part 2 – Average, Median, High, and Low Annual Gross Sales Generated by Franchisees Operating Between 12 to 24 Months Over the 2023 Calendar Year

• Part 2 of this Item discloses the average, median, high, and low annual Gross Sales generated by 9 Franchisees over the 2023 calendar year that have been operating between 12 to 24 months, split into thirds.

Top Third

• Number of Franchisees:  3
• Average Gross Sales:  $735,682
• Median Gross Sales:  $608,324
• High Average Gross Sales:  $1,012,454
• Low Average Gross Sales:  $586,269
• Number That Met or Exceeded Average Gross Sales:  1 (33%)

Middle Third

• Number of Franchisees:  3
• Average Gross Sales:  $484,910
• Median Gross Sales:  $501,736
• High Average Gross Sales:  $573,157
• Low Average Gross Sales:  $379,838
• Number That Met or Exceeded Average Gross Sales:  2 (66%)

Bottom Third

• Number of Franchisees:  3
• Average Gross Sales:  $298,293
• Median Gross Sales:  $319,649
• High Average Gross Sales:  $333,490
• Low Average Gross Sales:  $241,714
• Number That Met or Exceeded Average Gross Sales:  2 (66%)

• Of the Franchisees set forth in Part 2, the median number of Territories owned by a Franchisee is three and the median population is 1,064,788.

Part 3 – Average, Median, High, and Low Annual Gross Sales Generated by Franchisees Operating More Than 24 Months Over the 2023 Calendar Year

• Part 3 of this Item discloses the average, median, high, and low annual Gross Sales generated by 12 Franchisees over the 2023 calendar year that have been operating for more than 24 months, split into thirds.

Top Third

• Number of Franchisees:  4
• Average Gross Sales:  $3,483,149
• Median Gross Sales:  $2,589,789
• High Average Gross Sales:  $6,656,909
• Low Average Gross Sales:  $2,096,109
• Number That Met or Exceeded Average Gross Sales:  1 (25%)

Middle Third

• Number of Franchisees:  4
• Average Gross Sales:  $1,487,591
• Median Gross Sales:  $1,318,917
• High Average Gross Sales:  $2,033,125
• Low Average Gross Sales:  $1,279,298
• Number That Met or Exceeded Average Gross Sales:  1 (25%)

Bottom Third

• Number of Franchisees:  4
• Average Gross Sales:  $912,417
• Median Gross Sales:  $890,499
• High Average Gross Sales:  $1,141,848
• Low Average Gross Sales:  $726,824
• Number That Met or Exceeded Average Gross Sales:  2 (50%)

• Of the Franchisees set forth in Part 3, the median number of Territories owned by a Franchisee is one and the median population is 2,287,614.

Part 4 – Total Gross Sales Generated by Franchisees and Affiliate-Owned Locations Over the 2021, 2022, and 203 Calendar Years

• Part 4 of this Item discloses the total Gross Sales generated during the 2021, 2022, and 2023 calendar years by the Franchisees and Affiliate-Owned Locations.

2021

• Affiliate-Owned Territories:  3
• Franchisee Territories:  17
• Total Territories:  20

• Affiliate-Owned Locations Gross Sales:  $12,224,323
• Franchisee Gross Sales:  $20,120,892
• Total Gross Sales:  $32,345,215

2022

• Affiliate-Owned Territories:  3
• Franchisee Territories:  51
• Total Territories:  54

• Affiliate-Owned Locations Gross Sales:  $14,201,326
• Franchisee Gross Sales:  $26,645,288
• Total Gross Sales:  $40,846,614

2023

• Affiliate-Owned Territories:  3
• Franchisee Territories:  123
• Total Territories:  126

• Affiliate-Owned Locations Gross Sales:  $13,917,860
• Franchisee Gross Sales:  $32,296,126
• Total Gross Sales:  $46,213,986

Part 5 – Average, Median, High, and Low Average Gross Sales Per Job Generated by the Franchisees and Affiliate-Owned Locations Over the 2023 Calendar Year

Franchisees

• Number of Franchisees:  46
• Average Gross Sales Per Job:  $819
• Median Gross Sales Per Job:  $611
• High Gross Sales Per Job:  $3,354
• Low Gross Sales Per Job:  $352
• Number That Met or Exceeded Average Gross Sales Per Job:  14 (30%)

Affiliate-Owned Locations

• Number of Affiliate-Owned Locations:  2
• Average Gross Sales Per Job:  $935
• Median Gross Sales Per Job:  $894
• High Gross Sales Per Job:  $940
• Low Gross Sales Per Job:  $849
• Number That Met or Exceeded Average Gross Sales Per Job:  1 (50%)

Franchisees and Affiliate-Owned Locations

• Number of Franchisees and Affiliate-Owned Locations:  48
• Average Gross Sales Per Job:  $850
• Median Gross Sales Per Job:  $622
• High Gross Sales Per Job:  $3,354
• Low Gross Sales Per Job:  $352
• Number That Met or Exceeded Average Gross Sales Per Job:  11 (23%)

Part 6 – Total Gross Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, and Earnings for the Affiliate-Owned Locations (3 Territories) During the 2023 Calendar Year

• Part 6 of this Item discloses the total gross sales, total cost of goods sold, gross profit, estimated royalty fees, total operating expenses and estimated earnings generated by the two (2) Affiliate-Owned Locations (operating in a total of three (3) Territories) during the 2023 Calendar Year. Part 6 of this Item excludes the Franchisees.

Gross Sales

• Total Gross Sales:  $13,917,860 (100.0%)

Costs of Goods Sold

• Labor:  $3,401,870 (24.4%)
• Materials:  $783,134 (5.6%)
• Other COGS:  $226,499 (1.6%)
• Total Costs of Goods Sold:  $4,411,503 (31.7%)

Gross Profit:  $9,506,357 (68.3%)

Operating Expenses

• Office and Sales Personnel Wages:  $1,493,995 (10.7%)
• Employee Payroll Taxes, Insurance, and Benefits:  $862,709 (6.2%)
• Employee Recruiting, Payroll Admin Fees:  $76,461 (0.5%)
• Advertising and Marketing:  $1,064,954 (7.7%)
• Brand Fund Contribution:  $278,236 (2.0%)
• Royalty Fee:  $834,782 (6.0%)
• Technology Expenses:  $243,340 (1.7%)
• Building Expenses:  $479,098 (3.4%)
• Vehicle and Equipment Expenses:  $1,110,155 (8.0%)
• Insurance Expenses:  $314,095 (2.3%)
• Credit Card and Banking Fees:  $273,922 (2.0%)
• Other Sales, General, and Administrative Expenses:  $305,634 (2.2%)
• Total Operating Expenses:  $7,337,381 (52.7%)

Estimated Earnings:  $2,168,976 (15.6%)

• The term “Total Gross Sales” means the total amount of all sales of products and services sold from, though, or in connection with the Affiliate-Owned Locations, whether for cash, on credit, barter or otherwise, exclusive of applicable sales, use, or service taxes.

• The term “Total Costs of Goods Sold” is calculated by taking the total amount the Affiliate-Owned Locations expended on labor, materials, subcontractors, and other items.

• The term “Gross Profit” is calculated by taking the Total Gross Sales and subtracting the Total Costs of Goods Sold.

• Office and Sales Personnel Wages excludes the salary, wages, and medical benefits paid to Vice President of Operations for the Affiliate-Owned Locations.

• The Brand Fund Contribution includes the Brand Fund Contribution of 2% of Gross Sales, calculated by multiplying the Total Gross Sales by .02 to account for the Brand Fund Contribution of 2% set forth and required under Zoom Drain’s current form of Franchise Agreement.

• The term “Royalty Fee” means the Royalty Fee that the Affiliate-Owned Locations paid to Zoom Drain over the 2023 Calendar Year. Zoom Drain calculated the Royalty Fees by multiplying the Total Gross Sales by .06 to account for the Royalty Fee of 6% set forth and required under the current form of Franchise Agreement.

• The term “Total Operating Expenses” is calculated by adding up all the line items set forth under the “Operating Expenses” category.

• The term “Estimated Earnings” is calculated by taking the Gross Profit and subtracting the Total Operating Expenses. Estimated Earnings is defined as earnings before interest, taxes, depreciation, and amortization.

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