Black Diamond Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$73,900 - $197,500
Franchise Fee
$25,000
Total US Locations
14
Business Summary
Black Diamond Franchising Inc offers franchises for the operation of a pest control business under the 'BLACK DIAMOND' brand. As a franchisee, Black Diamond Franchising Inc states that you will sell termite and pest control services to both residential and commercial customers. The business involves inspecting properties, selling, designing, installing, and servicing pest elimination and control systems, all operated using Black Diamond Franchising Inc's proprietary system and standards.
Corporate History
Black Diamond Termite & Pest Control Service, Inc., an affiliate of Black Diamond Franchising Inc, was originally incorporated in Indiana on July 5, 1977. In 1987, its business assets were sold to K & D Services, Inc., another Indiana corporation. On January 16, 2007, K & D Services, Inc. contributed its assets to Black Diamond Termite & Pest Control, Inc., which has operated continuously since then. Black Diamond Franchising LLC was organized in Indiana on March 5, 2015, and converted into Black Diamond Franchising Inc, an Indiana corporation, on March 11, 2015, at which point it began offering franchises. Black Diamond Termite & Pest Control, Inc. now owns and operates Black Diamond franchises in Southern Indiana and Louisville, Kentucky.
Financial Overview
Investment Range
$73,900 - $197,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
5%
Equipment Costs (Low)
$16,000
Equipment Costs (High)
$46,000
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Black Diamond Franchising Inc received an unqualified audit opinion for its financial statements for the years ending December 31, 2023, and 2022, meaning the financial statements were presented fairly. However, the financial statements note a significant concentration risk for Black Diamond Franchising Inc, as approximately 40% to 45% of its revenue was generated from a single customer in 2023 and 2022, respectively. Additionally, about 81% of Black Diamond Franchising Inc's accounts receivable at the end of both years were from this one customer. The company also purchased approximately 100% of its chemicals from a single supplier during these years.
Financing Details
Black Diamond Franchising Inc does not offer any direct or indirect financing options to its franchisees. This means that Black Diamond Franchising Inc will not provide loans or guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
14
Franchised Units
6
Corporate Units
8
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Black Diamond Franchising Inc states that there is no litigation required to be disclosed in their disclosure document, indicating that Black Diamond Franchising Inc has not been involved in any material legal disputes that need to be reported to prospective franchisees.
Bankruptcy History
Black Diamond Franchising Inc states that neither Black Diamond Franchising Inc nor any of its parent companies, predecessors, or affiliates have filed for bankruptcy protection.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their franchise agreement, Black Diamond Franchising Inc franchisees must provide written notice of their intent to renew between 6 and 12 months before their current term ends. They must be in good standing, having satisfied all financial obligations and fully complied with their agreements. Franchisees also need to meet current qualification and training requirements, refurbish their location to meet current brand specifications, pay a renewal fee (which varies based on the renewal term and is $10,000 for a 7-year term), and sign Black Diamond Franchising Inc's then-current franchise agreement, which may have different terms. They may also be required to relocate their franchise if the current location is deemed non-viable, and both parties must sign a mutual general release of claims, excluding those under Indiana franchise law.
Training & Support Program
Franchisor Assistance
Black Diamond Franchising Inc provides several types of assistance to its franchisees. Before opening, Black Diamond Franchising Inc offers an initial training program, loans an operations manual, and provides a list of designated suppliers for uniforms, trucks, and office equipment. Ongoing assistance includes providing advice and written materials on managing and operating the franchise, conducting inspections and evaluations (for which a fee may be charged), offering advertising and promotional support including the Black Diamond logo, trademarks, website, and a toll-free number, and providing telephone and/or internet support. Black Diamond Franchising Inc may also provide newsletters, social media posts, and additional training if requested or deemed necessary, which may incur a fee.
Initial Training Hours
40
Training Location
Corporate headquarters in Jeffersonville, IN
Ongoing Support
After opening, Black Diamond Franchising Inc provides franchisees with ongoing advice and written materials concerning management, operations, promotions, and public relations. Black Diamond Franchising Inc conducts inspections and evaluations of the franchise's services, and offers advertising and promotional assistance, including use of the Black Diamond logo, trademarks, website, and a toll-free number. Franchisees also receive telephone and internet support, and may access newsletters, social media, and message board posts. Additional training can be provided at Black Diamond Franchising Inc's discretion, for which a fee may apply.
Franchise Requirements
Ideal Candidate Profile
Black Diamond Franchising Inc seeks franchisees who are committed to continuous, full-time, and personal involvement in managing and operating their business. Ideal candidates should be able to perform all sales, management, and maintenance functions required. If the franchisee is an individual, they or their designated Manager must be a U.S. citizen or legal resident and personally manage the franchise. All Managers must successfully complete Black Diamond Franchising Inc's training program and are expected to hold at least a 10% ownership interest in the franchise entity, though this can be waived. Franchisees and their employees must be licensed in every service category offered by a typical pest control business. In jurisdictions requiring it, at least two years of experience for a pesticide license is necessary; if the franchisee lacks this, they must hire or partner with someone who is licensed.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Min Years Experience
2
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
exclusive
Territory Size Requirements
Black Diamond Franchising Inc grants franchisees an exclusive territory that will be defined as a county or multiple counties within their state. While Black Diamond Franchising Inc will not establish another Black Diamond franchise within this assigned territory, it retains the right to operate or license others to operate businesses using other brands, or to sell products and services through alternative distribution channels, such as the internet, both inside and outside the franchisee's territory.
Staffing Notes
Black Diamond Franchising Inc requires franchisees to maintain a competent, trained staff at their location, including at least one Office Manager who has completed the required training. Franchisees are responsible for ensuring their employees maintain a neat appearance, good customer relations, and comply with dress codes and other standards. Black Diamond Franchising Inc also specifies that franchisees must employ enough personnel to support the business and are solely responsible for all employment decisions, including hiring, firing, remuneration, and discipline. The Manager and staff are explicitly not considered employees of Black Diamond Franchising Inc.