Fastframe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$31,250 - $246,663
Total US Locations
39
Business Summary
FASTFRAME operates custom framing retail stores that provide fast, turn-around services and sell related items to the public. FASTFRAME distinguishes itself by employing highly trained framers, offering quick service often on the same day, providing a "Total Satisfaction Guarantee," and maintaining a large inventory of framing materials. These retail locations are typically found in shopping malls and strip centers, with some full-service Outlets performing framing on-site, and Satellite locations generally handling work off-site.
Corporate History
FASTFRAME U.S.A., Inc. was incorporated in California on November 3, 1986, initially operating under the name "FASTFRAME CALIFORNIA, INC." until October 1988. The company began offering custom framing store franchises in 1987, granting rights to operate retail Outlets and Satellites that provide fast, expert custom framing services and related products to the public.
Financial Overview
Investment Range
$31,250 - $246,663
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$37,625
Equipment Costs (High)
$103,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for FASTFRAME indicate that the company experienced a net loss of $112,518 from operations and has an accumulated deficit of $2,493,666 for the year ending September 30, 2023. This current year loss, along with negative operating cash flows and the accumulated deficit, raises substantial doubt about FASTFRAME's ability to continue operating and meet its financial obligations in the near future. FASTFRAME attributes the 2023 net loss partly to the launch of new social media and fine art platforms, which it believes will ultimately boost sales and brand awareness. The company is taking steps to improve its financial condition by reducing operating costs and implementing operational efficiencies.
Financing Details
FASTFRAME offers direct financing in some circumstances. Franchisees may receive open account financing for certain goods and services, with payment due within 30 days and interest at 12% per annum or the legal maximum thereafter. In exceptional cases, FASTFRAME may finance up to 100% of the initial franchise fee (up to $35,000) with an annual interest rate of 12% or the legal maximum, with repayment terms typically ranging from 12 months to 3 years. FASTFRAME may also defer part of the initial franchise fee, requiring a $5,000 deposit upfront and the balance within 7 to 21 days, particularly for existing franchisees, employees, or those converting an independent store. While FASTFRAME assists franchisees with SBA loan applications, it does not guarantee these loans. FASTFRAME may also invest in franchised outlets by acquiring an interest in the limited liability company formed for the franchise, where it plans to be the majority owner.
Performance Metrics
Total US Locations
39
Franchised Units
39
Corporate Units
0
Avg Square Footage
1,600
Franchising Since
1987
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
FASTFRAME has disclosed two recent litigation cases. One case, filed in July 2023, is a petition to confirm an arbitration award against a franchisee named Carlos Hernandez, which arose from a royalty collection lawsuit. The other case, filed in March 2021, is an ongoing arbitration proceeding against a franchisee named James Quinn, also concerning a royalty collection suit. Both cases involve FASTFRAME seeking to collect royalties from its franchisees.
Bankruptcy History
FASTFRAME has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, FASTFRAME franchisees must meet several conditions: their outlet must be renovated or modernized to meet current FASTFRAME standards, they must be in good standing with no defaults and current on all payments to FASTFRAME, its affiliates, and suppliers. Franchisees and their supervisory employees must also meet current qualification requirements for new franchisees and may need to complete the current training program. Additionally, they must have the right to occupy their approved location for the full renewal period or obtain approval for a substitute location. A renewal fee, equal to 25% of the then-current initial franchise fee for an Outlet, is also required. FASTFRAME may require franchisees to sign a new franchise agreement with potentially different terms.
Training & Support Program
Franchisor Assistance
FASTFRAME provides extensive assistance both before and after a franchisee opens their business. Before opening, FASTFRAME helps with site selection by providing demographic information, conducting site inspections, and reviewing leases. It offers customized interior floor plans for the first FASTFRAME Outlet, covering costs up to $1,000. Additionally, FASTFRAME sends a representative for up to 10 days to supervise equipment and furniture placement, ensure adequate inventory, provide on-site training, and assist with the grand opening. It also designs, produces, and places a customized opening advertising program and loans a complete set of operations manuals. New franchisees and their staff receive a mandatory two-week initial training program at FASTFRAME's California headquarters. After opening, ongoing support includes periodic updates to the operations manuals and system standards, and regular updates to the list of approved suppliers. FASTFRAME also offers periodic training programs and refresher courses for franchisees and their employees at no additional cost, though attendees are responsible for their own travel and living expenses. Continuing assistance and guidance are provided through electronic mail, fax, written updates, newsletters, regional and national meetings, webinars, and consultations. It also develops and distributes advertising and promotional materials and manages the Marketing Services Program.
Initial Training Hours
128
Training Location
FASTFRAME's production headquarters at 3583 Old Conejo Road, Newbury Park, CA 91320
Ongoing Support
After a FASTFRAME Outlet opens, franchisees receive ongoing support including periodic updates to the operations manuals and system standards, and regular updates to the list of approved suppliers. FASTFRAME also offers periodic training programs and refresher courses for franchisees and their employees at no additional cost, though attendees are responsible for their own travel and living expenses. Continuing assistance and guidance are provided through electronic mail, fax, written memos, franchisee bulletins, newsletters, magazines, regional and national meetings, webinars, and phone or in-person consultations from the headquarters staff.
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
Protected
Territory Size Requirements
FASTFRAME territories are typically defined based on demographics, encompassing approximately 50,000 to 75,000 people. The boundaries of these territories are designated using zip codes, maps, or by naming specific streets or natural landmarks.
Staffing Notes
FASTFRAME franchisees are required to ensure their outlets are adequately staffed with a sufficient number of competent and trained supervisors and employees to operate efficiently and meet FASTFRAME's standards. Franchisees are solely responsible for employee employment, compensation, and training. Employees must maintain a neat appearance, pleasant demeanor, and adhere to FASTFRAME's dress code. If the franchisee does not personally supervise, they must designate an approved Outlet Manager responsible for daily operations, who must successfully complete FASTFRAME's initial training program and work a minimum of 40 hours per week during operating hours. Franchisees must promptly notify FASTFRAME of any manager changes, and new managers or other new employees may be required to complete FASTFRAME's training, with the franchisee covering all associated expenses.