Archadeck Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$120,400 - $139,300
Franchise Fee
$29,750
Total US Locations
103
Business Summary
ARCHADECK Outdoor Living operates a construction sales and service business specializing in designing, building, repairing, remodeling, and maintaining outdoor living spaces and environments. This includes a wide range of residential and commercial projects such as decks, screened porches, gazebos, sunrooms, room additions, outdoor kitchens, patios made with pavers or stone, and various accessories like play sets and lighting. The business focuses on enhancing and complementing outdoor living areas.
Corporate History
Archadeck Outdoor Living's current franchisor, Archadeck Franchisor, LLC, was formed on August 31, 2021, and acquired the ARCHADECK system's franchise assets on September 9, 2021. The predecessor company, Archadeck Franchising Corporation (formerly U.S. Structures, Inc.), had been the franchisor of the ARCHADECK system since June 1980. Archadeck Franchisor, LLC is a wholly-owned subsidiary of Outdoor Living Brands Holdco, LLC (OLB Holdco), which previously offered ARCHADECK franchises in Canada before transferring them. OLB Holdco itself is a wholly-owned subsidiary of Empower Brands. Empower Brands is part of a larger corporate family structure owned by Lynx-JP Holdings, Inc., MidOcean BCAT Holdings, Inc., and ultimately majority-owned by MidOcean Associates V, LP. Archadeck Outdoor Living is one of several franchise brands under the Empower Brands umbrella, which also includes Bumble Roofing, Canopy, Conserva Irrigation, FRSTeam, Jan-Pro, Koala Insulation, Outdoor Lighting Perspectives, Superior Fence & Rail, and Wallaby Windows. Lynx Franchising Intellectual Property, LLC owns the ARCHADECK trademarks, licensing them to the franchisor, and OLB Supply Chain, LLC sources products for franchisees.
Financial Overview
Investment Range
$120,400 - $139,300
Franchise Fee (Low)
$29,750
Franchise Fee (High)
$92,700
Royalty %
6.5%
Marketing %
1.5%
Equipment Costs (Low)
$4,900
Equipment Costs (High)
$7,300
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The parent company of Archadeck, Outdoor Living Brands Holdco, LLC, appears to be in a strong financial position. It consistently has positive and growing working capital, which means it has more than enough readily available funds to cover its short-term debts. The company has also shown significant growth in total revenue and net income over the past three fiscal years, indicating increasing profitability. Although the financial statements mention related party transactions and a change in how income taxes are accounted for, these do not suggest any financial instability. Importantly, the auditors did not express any concerns about Archadeck's ability to continue as a going concern, reinforcing its overall financial health and stability.
Financing Details
Archadeck offers financing options to existing franchisees under specific, limited circumstances. For those who qualify, Archadeck may finance up to 80% of the initial franchise fee, with repayment terms extending up to 24 months. The annual interest rate for this financing is set at 4 percentage points above the prime interest rate at the time the Franchise Agreement becomes effective. There are no penalties for early repayment, and the financing structure avoids the "rule of 78" method, which could otherwise require paying more interest even if the loan is paid off early. Archadeck does not require a security interest for these loans, but the franchisee and any required guarantors must sign a Promissory Note. If a payment is missed and the loan is accelerated, the franchisee would have 10 days to pay the full balance, after which higher interest (up to 18%) and collection costs could apply, and Archadeck could terminate the franchise agreement. Archadeck does not currently intend to sell these promissory notes to third parties. Beyond this specific franchise fee financing for existing franchisees, Archadeck does not provide any other direct or indirect financing, nor does it guarantee loans from third-party lenders.
Performance Metrics
Total US Locations
103
Franchised Units
103
Corporate Units
0
Franchising Since
1980
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
ARCHADECK Outdoor Living currently has one active litigation case. The franchisor filed a lawsuit against David Herbert on August 4, 2023, in the Henrico Circuit Court, Virginia, for royalty collection. No other litigation is required to be disclosed by ARCHADECK Outdoor Living, indicating a relatively low volume of legal disputes.
Bankruptcy History
Archadeck Outdoor Living has no bankruptcy history required to be disclosed in this Franchise Disclosure Document.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their Archadeck franchise, franchisees must meet several conditions. They must not have failed to remedy any specified breach of the franchise agreement and must not have received two or more notices of breach in the 24 months prior to the term's end, even if those breaches were cured. Archadeck franchisees must also have met their Minimum Annual Sales Quota every year during the Initial Term. They are required to provide written notice of their intent to extend their rights to operate the business between six and nine months before the Initial Term expires. All payment obligations to Archadeck Franchisor, LLC or trade creditors must be current. Franchisees must meet the franchisor's then-current qualifications for new or renewing Archadeck franchisees and execute a successor franchise agreement, which may include materially different terms like higher royalty and advertising contributions. A successor franchise fee, equal to 10% of the then-existing Initial Franchise Fee, is due upon signing the new agreement. Additionally, Archadeck franchisees must sign a general release of all claims against the franchisor and its affiliates, upgrade their computer system, technology platforms, and vehicle to the franchisor's current standards, and provide proof of all current licenses, insurance, and necessary permits. The franchisor may also require other reasonable conditions.
Training & Support Program
Franchisor Assistance
Archadeck provides extensive assistance to its franchisees, both before and after opening. Prior to opening, Archadeck designates the franchisee's territory and furnishes specifications for all initial and replacement equipment, tools, vehicles, inventory, and supplies. It conducts an initial training program (up to 15 business days) for the Designated Business Manager at its Richmond, Virginia facility or another designated location, and requires two to three days of additional training at an existing Archadeck franchise location. Franchisees are loaned a confidential operations manual (or provided electronic access) and given access to graphics for letterhead, business cards, and other start-up materials. Pre-opening assistance may also be provided at Archadeck's discretion. Ongoing support for Archadeck franchisees includes making a representative reasonably available by telephone during normal business hours to discuss operational issues. Archadeck may hold periodic elective conferences and mandatory annual conferences to discuss sales techniques, new product and service developments, operations, marketing strategies, training, and more (franchisees pay associated fees and expenses). The franchisor informs franchisees of mandatory specifications, standards, and procedures, researches new products and methods, and provides information on these developments. Archadeck maintains and uses a National Branding & Marketing Fund to develop promotional brand awareness and advertising programs and provides advertising materials in the form of graphic artwork. Additional assistance may be provided at Archadeck's discretion, and construction drawings for the first 10 sold projects are provided at no charge. Archadeck may also assist with establishing product and service prices, to the extent permitted by law.
Initial Training Hours
130
Training Location
Richmond, Virginia or another location the franchisor designates
Ongoing Support
Archadeck provides continuous support to its franchisees after their businesses open. Franchisees can reach a representative by telephone during normal business hours to discuss operational issues. Archadeck may hold periodic optional conferences and mandatory annual conferences covering sales techniques, new service and product developments, operations, marketing strategies, training, bookkeeping, accounting, and performance standards. Franchisees are responsible for conference fees and their own travel and living expenses for these events. The franchisor also informs Archadeck franchisees of mandatory specifications, standards, and procedures for business operations and researches new products, services, and methods, providing information on these developments. Archadeck maintains and utilizes a National Branding & Marketing Fund to create promotional brand awareness and advertising programs and provides advertising materials as graphic artwork. Additionally, Archadeck may offer additional assistance as deemed necessary and may require franchisees to attend supplemental and refresher training programs, for which franchisees would pay a reasonable fee and all personal expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
hybrid
Owner Participation
hands-on
Territory Type
limited
Territory Size Requirements
Archadeck Outdoor Living territories are defined based on demographics and other characteristics such as population density, home values, average income, natural boundaries, and the extent and size of urban, suburban, and rural areas. A typical Archadeck Outdoor Living territory is designed to have a population of less than 600,000 people. If a territory is granted with a population exceeding this 600,000 limit, the franchisee must pay an additional fee of $0.083 per individual for the population beyond 600,000, though the franchisor does not expect any single territory to exceed 999,999 individuals. The franchisor uses the most recent U.S. Census Data or other chosen population statistical sources to determine qualified households. The franchisor retains the exclusive right to define territory boundaries and may modify the population limit in its sole discretion.
Staffing Notes
Archadeck Outdoor Living businesses require a Designated Business Manager to provide direct, on-site supervision. This manager may be an employee and is not required to hold an ownership interest in the business. If the franchisee is deemed to lack sufficient business experience by the franchisor, the selection of the Designated Business Manager must be approved by the franchisor. The Designated Business Manager must successfully complete the initial training program and adhere to the confidentiality and non-competition obligations outlined in the franchise agreement and operating manual. Additionally, within the first three to five months of operations, an Archadeck Outdoor Living franchisee must hire a separate Office Manager. This Office Manager is responsible for administrative support, including answering phones, obtaining permits, bookkeeping, and scheduling projects, and must work a minimum of 20 hours per week during the primary operating months of the season each year. The franchisee is solely responsible for all aspects of hiring, scheduling, supervising, compensating, and disciplining all other employees, and must maintain a staff sufficient to operate the business in compliance with Archadeck's mandatory standards.