Best Choice Roofing Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$117,410 - $202,010
Franchise Fee
$30,000
Min Cash Required
$20,000
Total US Locations
63
Business Summary
Best Choice Roofing operates a business that specializes in residential and commercial roofing and other property maintenance services. Franchisees lead a sales team and are responsible for material installation and customer satisfaction. The business provides these services to both residential and commercial customers using Best Choice Roofing's established brand and system.
Corporate History
Best Choice Roofing Franchising, LLC was formed as a Tennessee limited liability company on February 4, 2020. The company began offering franchises in December 2021. Prior to this, its affiliate, Best Choice Roofing & Home Improvement, Inc., which operates businesses of the type being franchised, was formed on January 5, 2010. This affiliate also manages an approved call center vendor and a supplier for contract entry services for Best Choice Roofing franchisees.
Financial Overview
Investment Range
$117,410 - $202,010
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$59,500
Minimum Cash Required
$20,000
Royalty %
6%
Equipment Costs (Low)
$3,500
Equipment Costs (High)
$25,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Best Choice Roofing Franchising, LLC's financial health raises concerns regarding its ability to provide services and support to franchisees. The company has reported a net loss for the fiscal years ending December 31, 2022, and 2023, with a significant net loss of -$1,118,524 in 2023. This has resulted in a member's deficit (negative equity) of -$179,111 as of December 31, 2023, and a further net loss of -$160,367 during the first quarter of 2024. These financial indicators suggest potential challenges in maintaining financial stability and supporting its franchise system.
Financing Details
Best Choice Roofing does not offer any direct or indirect financing to its franchisees. Additionally, the company does not guarantee any notes, leases, or other financial obligations incurred by franchisees.
Performance Metrics
Total US Locations
63
Franchised Units
18
Corporate Units
45
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
2
Litigation Summary
Best Choice Roofing has disclosed two litigation matters. The first was a lawsuit filed in July 2018 by an affiliate, Best Choice Roofing & Home Improvement, Inc., against former licensees for breach of contract, trademark infringement, and unfair competition. Counterclaims of fraudulent misrepresentation were dismissed, and the parties reached a settlement where the defendants paid a monetary sum and discontinued using the brand's trademarks. The second case involves Best Choice Roofing Franchising, LLC, which filed a lawsuit in May 2023 against a former franchisee for breach of contract and violation of restrictive covenants. This Arkansas lawsuit was settled in July 2023, with the former franchisee agreeing to a monetary settlement and adherence to restrictive covenants. However, Best Choice Roofing Franchising, LLC refiled a lawsuit in March 2024 in Tennessee against the same former franchisee, alleging breach of the settlement agreement, including claims for breach of contract, worthless check, fraudulent inducement/promissory fraud, estoppel, and fraudulent concealment. This Tennessee lawsuit is ongoing, and Best Choice Roofing Franchising, LLC intends to vigorously pursue its rights.
Bankruptcy History
Best Choice Roofing's Chief Financial Officer, Andrea Morris, filed a personal Chapter 13 bankruptcy petition on June 6, 2018. This petition was filed jointly with Ronald Eugene Morris. The plan was completed, and the bankruptcy court issued a discharge on October 28, 2022. The case was formally closed on January 17, 2023.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Best Choice Roofing franchise agreement, franchisees must notify the franchisor between 90 and 180 days before their current term ends. They must be in full compliance with their existing agreement and all other agreements with the franchisor. Franchisees are also required to update their business to conform to the then-current brand standards for new franchisees, sign the franchisor's current franchise agreement, and execute a general release of liability. A renewal fee of $10,000 is also required.
Training & Support Program
Franchisor Assistance
Best Choice Roofing provides several forms of assistance to its franchisees. Before opening, the company approves the franchisee's chosen site (but does not assist with location, negotiation, or construction), offers suggested staffing and hiring guidelines, provides operational instructions through its Manual, conducts an initial training program, and advises on the Market Introduction Plan. After opening, Best Choice Roofing offers advice via phone or electronic communication for business development and problem-solving (in-person support incurs an additional fee). The company may also establish minimum and maximum prices for services, provides required procedures for administration and accounting, manages the Brand Fund, and maintains the brand's website which includes the franchisee's business information.
Initial Training Hours
71
Training Location
Hendersonville, TN
Ongoing Support
Best Choice Roofing offers ongoing support to its franchisees after opening through various channels. This includes providing advice via telephone or electronic communication for improving business operations and resolving problems, although in-person support may incur additional fees. The company manages the Brand Fund and maintains the Best Choice Roofing brand website, which includes franchisee information. Franchisees are required to attend two semi-annual sales training "Bootcamps" and an annual National Annual Meeting, both of which involve attendance fees and require the franchisee's Principal Executive, general manager, and sales managers to attend. Failure of the Principal Executive to attend without prior written permission incurs a $3,000 fee per meeting.
Franchise Requirements
Ideal Candidate Profile
Best Choice Roofing seeks individuals to be a "Principal Executive" for their franchise. This executive must own at least 10% of the business, be primarily responsible for its operations, possess decision-making authority, and dedicate substantial time and attention to the business. While personal on-premises supervision is not strictly required (a Production Manager can be hired), the Principal Executive must complete initial training and all subsequent training programs and attend all required meetings, including national conferences and semi-annual sales "Bootcamps". The franchisor also offers opportunities for qualified candidates interested in developing multiple territories, aiming for operators who can open between 2 to 10 territories.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Limited
Staff Count
7
Territory Size Requirements
Best Choice Roofing territories are defined areas, approved by the franchisor, consisting of approximately 100,000 single-family homes. Franchisees can purchase additional areas within their territory for $0.60 per single-family home or acquire additional entire territories. The size of the single-family homes within a territory is determined using the franchisor's mapping software, GbBis, which utilizes data from various sources, including the most current United States Census data.
Staffing Notes
Best Choice Roofing provides franchisees with suggested staffing levels and hiring guidelines. Franchisees are solely responsible for all aspects of employee management, including recruiting, hiring, training, and compensation. Once a franchise reaches $120,000 in monthly gross revenue for three consecutive months, it is required to employ at least four full-time sales representatives, in addition to the Principal Executive (owner). Typical administrative payroll for affiliate locations includes one Sales Manager, one General Manager, and one Office Administrator, implying these roles are commonly part of the staffing structure. While the Principal Executive is not required for on-premises supervision, they must personally supervise the business and devote substantial time. Franchisees can hire a Production Manager to oversee roofing installation subcontractors and customer service. General managers and other key employees may be required to sign confidentiality and non-compete agreements.