Blue Moon Estate Sales logo

Blue Moon Estate Sales Franchise

Audited Financials
Home ServicesEst. 2013Troy, MI
www.BlueMoonEstateSales.com
Financing Available

Risk Score

Pending analysis

Investment Range

$57,015 - $113,325

Franchise Fee

$9,500

Min Cash Required

$12,000

Total US Locations

123

Business Summary

Blue Moon Estate Sales operates a business that provides services for selling personal property, including furniture, tools, jewelry, and decor. The franchise also offers move management services and consignment sales for individuals who are downsizing, relocating, or managing the estate of a deceased loved one. Ancillary services may include cleaning services, online sales and auctions, staging services, and commercial sales. Blue Moon Estate Sales typically operates from a home office or a small leased commercial space.

Corporate History

Blue Moon Franchise Systems, LLC, originally known as Blue Moon Estate Sales USA, LLC, was organized as a North Carolina limited liability company on April 26, 2013, and began offering franchises in the same year. Blue Moon Estate Sales is part of the larger Best Life Brands, LLC, a Michigan limited liability company, which is owned by CFC Holding Company, LLC. CFC Holding Company, LLC is majority-owned by TRC CFC, LLC, which is part of The Riverside Company, a global private equity firm. The Riverside Company manages various private equity funds that own several other franchise brands across different industries.

Financial Overview

Investment Range

$57,015 - $113,325

Franchise Fee (Low)

$9,500

Franchise Fee (High)

$57,000

Minimum Cash Required

$12,000

Royalty %

5.5%

Marketing %

1%

Equipment Costs (Low)

$3,900

Equipment Costs (High)

$5,450

Working Capital

$13,500

Audited Financials

Yes

Offers Financing

Yes

Audit Opinion

Unqualified opinion

Financial Health Notes

Blue Moon Estate Sales' financial condition, as noted in the FDD's Special Risks section, raises questions about its ability to provide services and support to franchisees. The parent company, CFC Holding Company, LLC, which guarantees Blue Moon Estate Sales' performance, has consistently reported net losses in recent years: $3,073,861 in 2024, $7,643,730 in 2023, and $2,536,855 in 2022. Additionally, the parent company's consolidated balance sheets show a significant members' deficit, growing from $8,057,483 in 2023 to $27,438,644 in 2024, with total liabilities substantially exceeding total assets in 2024. Despite these financial indicators, the independent auditor's report for CFC Holding Company, LLC issues an unqualified opinion, meaning the financial statements present fairly, in all material respects, the financial position of the company, and the auditor did not include a 'going concern qualification' in their opinion.

Financing Details

Blue Moon Estate Sales may offer direct financing to qualified franchisees under its Standard Offering, covering up to 50% of the initial franchise fee. This financing comes with a 10% annual interest rate and a 60-month repayment term, starting either on the franchise's opening date or six months from the contract date, whichever comes first. This financing option is not available to franchisees who choose the Reduced Initial Fee Offering. Franchisees accepting financing must sign a promissory note and grant Blue Moon Estate Sales a security interest in the franchise, including all assets, with a UCC financing statement filed. Personal guarantees from all owners and their spouses are required. Blue Moon Estate Sales also reserves the right to finance portions of expansion fees for qualified franchisees under similar terms. While Blue Moon Estate Sales may refer candidates to third-party lenders, it does not guarantee these loans or a franchisee's obligations to such lenders.

Performance Metrics

Total US Locations

123

Franchised Units

123

Corporate Units

0

Avg Square Footage

225

Franchising Since

2013

Legal & Compliance Analysis

Recent Litigation

Yes

Bankruptcy

No

Litigation Count

10

Litigation Summary

Blue Moon Estate Sales itself faced one lawsuit in 2023 from a franchisee alleging violations of business opportunity laws, which was settled in 2024. Additionally, several of Blue Moon Estate Sales' affiliate brands under Best Life Brands (CarePatrol, ComForCare, and Next Day Access) have faced legal and administrative actions. CarePatrol was involved in two lawsuits in 2024 against former franchisees for non-compete and confidentiality breaches, both resolved. ComForCare faced four lawsuits between 2023 and 2024, primarily regarding unpaid fees, breach of contract, confidentiality violations, and one case alleging negligent care by former franchisees. Parties are either preparing for discovery or negotiating settlements in these ongoing ComForCare cases. In terms of administrative actions, CarePatrol had an FTC complaint in 2012 regarding website wording, ComForCare had a Maryland administrative proceeding in 2010 for selling unregistered franchises (one rescission occurred), and Next Day Access faced a Minnesota administrative proceeding in 2022 for selling two unregistered franchises, resulting in a civil penalty. Overall, Blue Moon Estate Sales and its affiliates have a history of multiple litigations and administrative actions, some of which are recent and ongoing.

Bankruptcy History

Blue Moon Estate Sales has no bankruptcy history to report for the franchisor, its affiliates, or key personnel.

Agreement Terms

Initial Term

10 years

Renewal Term

15 years

Renewal Conditions

To renew their Blue Moon Estate Sales franchise, franchisees must provide written notice between six and twelve months before the current agreement ends. They must be in good standing, meaning they have no defaults on their agreement or any other agreements with Blue Moon Estate Sales or its affiliates, and are current on all financial obligations to landlords and vendors. Franchisees will need to sign Blue Moon Estate Sales' then-current franchise agreement and other related documents, which may have different, potentially less favorable, terms. They may also be required to attend any current training programs and pay a renewal fee of $7,500 for a 10-year term or $15,000 for a 15-year term. Franchisees will also need to sign a general release of claims against Blue Moon Estate Sales and its affiliates. If a franchisee originally purchased under the Reduced Initial Fee Program, they cannot switch to the lower Standard Offering royalty rate upon renewal.

Training & Support Program

Franchisor Assistance

Blue Moon Estate Sales provides assistance to franchisees by designating their Protected Territory and outlining initial training program requirements. The franchisor offers a three-phase Initial Training Program for up to two people, which takes approximately 8-10 weeks to complete. This training includes administrative setup, community research, eLearning, industry-specific training, and marketing and administrative training, conducted remotely and at a Designated Location. Blue Moon Estate Sales also provides an Operations Manual. After opening, ongoing support includes guidance and recommendations on improving marketing and operations through telephone consultations and visits from field representatives. The franchisor researches and develops new marketing procedures and lead sources, and communicates this information to franchisees. Upon request, Blue Moon Estate Sales offers guidance on item pricing for estate sales. Additionally, the franchisor has a National Accounts Program, allowing qualified franchisees to participate in serving referral sources at local, statewide, national, or regional levels.

Initial Training Hours

94

Training Location

Designated Location and online/remote within the franchisee's territory

Ongoing Support

After opening, Blue Moon Estate Sales franchisees receive ongoing guidance and recommendations to improve marketing and operations through telephone consultations and visits from field representatives. The franchisor continuously researches and develops new marketing procedures and lead sources, which are communicated to franchisees. Upon request, Blue Moon Estate Sales provides guidance on determining proper pricing for estate sale items. The franchisor also offers additional training at its discretion, which may be mandatory, and optional supplemental on-site training for a fee if requested by the franchisee. Additionally, franchisees can participate in a National Accounts Program to serve referral clients.

Franchise Requirements

Ideal Candidate Profile

Blue Moon Estate Sales seeks individuals who can personally supervise the business full-time, dedicating at least 35 hours per week. The owner must fulfill the role of either a dedicated Field Manager or a dedicated Marketer. While not explicitly stated as prior requirements, successful franchisees are observed to employ an additional full-time dedicated Marketer or Field Manager and two to three Sales Associates. For those acquiring multiple businesses, each Protected Territory requires at least one Field Team, comprising a Field Manager, a Team Leader, and two to three Sales Associates. Transferees (and by implication, initial franchisees) are expected to meet educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, and demonstrate the aptitude, ability, and adequate financial resources to operate the franchise.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Home-Based

Owner Participation

full-time

Territory Type

Protected

Staff Count

5

Territory Size Requirements

Blue Moon Estate Sales territories are defined by specific U.S. Postal Service ZIP codes and are designed to have a population of approximately 500,000 people. These population estimates are updated every six months using the GbBis mapping application and U.S. Census Bureau statistics.

Staffing Notes

Blue Moon Estate Sales requires the owner to personally supervise the business full-time, serving as either a dedicated Field Manager or dedicated Marketer, but not both, with 'full-time' defined as at least 35 hours per week. Successful franchise owners are also encouraged to employ an additional full-time dedicated Marketer or Field Manager (depending on the owner's role) and two to three Sales Associates. For franchisees with multiple units, at least one 'Field Team' is required for each Protected Territory, with a Field Team consisting of a Field Manager, a Team Leader, and two to three Sales Associates.