Risk Score
Pending analysis
Investment Range
$161,750 - $276,000
Franchise Fee
$25,000
Total US Locations
11
Business Summary
DaaBIN Store operates unique discount stores that sell products sourced from overstock, damaged items, end-of-lot merchandise, and customer returns or open-box items. DaaBIN Store locations offer a wide variety of products sold at significant discounts, featuring flash sales and weekly new stock shipments.
Corporate History
DaaBIN Store Franchising, LLC was formed as an Iowa Limited Liability Company on February 16, 2022, and began offering franchises in May 2022. Its parent company, DaaBIN Store, Inc., is a holding company for company-owned locations and was incorporated in Cedar Falls, Iowa, on January 3, 2022. Several affiliate-owned DaaBIN Store locations have been established since 2021, primarily in Iowa, North Carolina, and Missouri.
Financial Overview
Investment Range
$161,750 - $276,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$40,000
Equipment Costs (High)
$66,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in a special risk disclosure in the FDD, raises questions about DaaBIN Store Franchising's ability to financially support its franchisees and provide services. Prospective franchisees should review the financial statements in Item 21 carefully.
Financing Details
DaaBIN Store Franchising does not offer any direct or indirect financing to its franchisees. Additionally, DaaBIN Store Franchising does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
11
Franchised Units
3
Corporate Units
8
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
DaaBIN Store Franchising has no litigation to report. No litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
DaaBIN Store Franchising has no bankruptcy history to report. No bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, DaaBIN Store franchisees must notify the franchisor between 90 and 180 days before their current term ends, be in full compliance with all contractual obligations to DaaBIN Store Franchising and third parties, and agree to renovate their business to meet the franchisor's then-current standards. Franchisees must also sign the current version of the franchise agreement and related documents, including a personal guaranty, and provide a general release of any claims against DaaBIN Store Franchising.
Training & Support Program
Franchisor Assistance
Before a DaaBIN Store location opens, DaaBIN Store Franchising helps franchisees by reviewing potential store locations and offering advice on selection, providing standard building and floor plans, and giving specifications for décor. They also offer suggested staffing levels and hiring guidelines, a list of approved suppliers for equipment, signs, fixtures, and initial inventory, and access to their Brand Standards Manual. DaaBIN Store Franchising also conducts an initial training program, reviews pre-opening business plans and financial projections upon request, advises on the market introduction plan, and provides one week of on-site support during the business opening. After opening, DaaBIN Store Franchising advises franchisees on business improvement and problem-solving, sets required prices for products and services (where legally permitted), provides recommended administrative, bookkeeping, accounting, and inventory control procedures, manages the Brand Fund, and maintains a brand website that includes the franchisee's business information.
Initial Training Hours
44
Training Location
Franchisor headquarters in Cedar Falls, IA, or at the franchisee's location
Ongoing Support
After opening, DaaBIN Store Franchising provides advice to franchisees by telephone or electronic communication regarding improving their business and resolving operational problems, to the extent the franchisor deems reasonable. If on-site support is requested by the franchisee, DaaBIN Store Franchising may charge a daily fee plus travel expenses. DaaBIN Store Franchising also manages the Brand Fund for marketing and maintains a brand website that includes the franchisee's location and phone number. Franchisees are also provided with recommended administrative, bookkeeping, accounting, and inventory control procedures.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
exclusive
Territory Size Requirements
DaaBIN Store franchisees receive an exclusive territory of a minimum 2.5-mile radius around their approved location. While usually defined by a radius, the franchisor may also use other boundaries like county lines, political boundaries, streets, geographical features, or trade area to define the territory.