abc Seamless Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$187,701 - $331,581
Franchise Fee
$46,750
Total US Locations
69
Business Summary
ABC Seamless offers a franchise business that sells, manufactures, and installs seamless siding, seamless gutters, soffit, fascia, and various accessories for new and existing residential and commercial properties. Additionally, franchisees have the option to sell metal roofing and related products under the 'abc Roofing' brand.
Corporate History
ABC was incorporated in North Dakota on December 1, 1978, and began operating abc Seamless businesses in December 1978, either directly or through its affiliates. Since 2009, its affiliates have also operated roofing businesses, sometimes alongside siding businesses since 2012. ABC Seamless has been offering franchises for its siding business since September 1979 and has not offered franchises for any other type of business. While the company previously operated its own businesses, as of December 31, 2022, its current affiliates operate four abc Seamless businesses in Nebraska.
Financial Overview
Investment Range
$187,701 - $331,581
Franchise Fee (Low)
$46,750
Franchise Fee (High)
$55,000
Royalty %
3%
Marketing %
1%
Equipment Costs (Low)
$93,201
Equipment Costs (High)
$145,581
Working Capital
$33,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
ABC Seamless demonstrates consistent profitability, with net income exceeding $900,000 in 2023. The company maintains a strong cash position and substantial assets. Its financial statements have received an unqualified opinion from independent auditors, indicating sound financial reporting. While the company engages in related-party transactions, including notes and rent with affiliates, and owes $234,288 to related companies for allocated payroll and credit card charges as of December 31, 2023 (expected to be repaid within six months), these items do not raise significant concerns about the overall financial health of ABC Seamless.
Financing Details
ABC Seamless may offer financing for the purchase of used seamless siding machines, seamless gutter machines, or other fixtures if they have such equipment available and the franchisee is deemed creditworthy. This financing typically covers 70% to 90% of the used equipment's value, with interest rates ranging from 7% to 10% over a term of 3 to 5 years. Upon full payment of all amounts, the franchisee has the option to purchase the equipment for a nominal amount. ABC Seamless does not provide any other financing arrangements.
Performance Metrics
Total US Locations
69
Franchised Units
65
Corporate Units
4
Franchising Since
1979
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
ABC Seamless has one pending arbitration case filed in March 2024 against a franchisee. In this action, ABC Seamless claims the franchisee failed to allow an audit of financial documents as agreed to in their franchise agreement and infringed on its protected trademarks. ABC Seamless is seeking injunctive relief to audit the documents and to order the franchisee to immediately stop infringing on its trademarks. ABC Seamless is alleging no more than $150,000 in damages and anticipates a trial later in 2024.
Bankruptcy History
ABC Seamless has no bankruptcy information required to be disclosed for itself or its management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, ABC Seamless franchisees must not be in default under any agreements with the franchisor and must provide at least 240 days' written notice before their 10-year term expires. They will be required to sign a release and execute the franchisor's then-current franchise agreement and related exhibits, including a Renewal Addendum. Franchisees should be aware that the terms and conditions of this new franchise agreement may be significantly different from their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, ABC Seamless designates the franchisee's territory, provides an initial training program at its headquarters (or other designated site), and loans confidential operations manuals. It also approves the franchisee's proposed business location. During operation, ABC Seamless counsels and advises franchisees on business development, consults on system operations, and keeps them updated on new developments and improvements. It uses reasonable efforts to provide ordered materials, equipment, and parts within a reasonable time, provides a warranty for some products in conjunction with suppliers, and manages the advertising/marketing fund. ABC Seamless also makes advertising templates available and must approve any locally created advertising.
Initial Training Hours
176
Training Location
Nebraska
Ongoing Support
ABC Seamless offers ongoing training to its franchisees through regional and national meetings, which include seminars on sales, management, and marketing. These meetings may feature nationally acclaimed speakers. Although attendance is free, franchisees are responsible for their own food, travel, and hotel expenses. Additional training is also provided at the ABC Seamless home office in Nebraska as needed, with varying durations depending on the franchisee's request. The franchisor provides ongoing counseling and advice regarding business development and operations, and keeps franchisees informed of new system developments and improvements. These services are contingent on the franchisee not being in default.
Franchise Requirements
Ideal Candidate Profile
ABC Seamless seeks franchisees who are committed to personally participating in the direct, full-time operation of their business. Franchisees must oversee a manager for the business's daily supervision. If the franchisee is a corporation, limited liability company, or partnership, all owners are required to sign a personal guaranty.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
ABC Seamless territories are defined as an area containing approximately 75,000 single-family homes or a population of approximately 114,000, based on the latest U.S. Census, whichever results in the smaller geographical area. Franchisees are required to purchase a minimum of two such territories.
Staffing Notes
ABC Seamless requires that the franchisee's lead sales person and lead applicator complete initial training. The business must always be supervised by a manager who works under the direct supervision of the franchisee. While ABC Seamless does not impose specific restrictions, requirements, or limitations on who can be hired as a manager, or require them to have equity, they do mandate that the manager signs a Confidentiality Agreement.