Risk Score
Pending analysis
Investment Range
$100,595 - $121,825
Franchise Fee
$42,300
Total US Locations
226
Business Summary
Fibrenew USA Ltd. operates a mobile service that repairs, cleans, re-dyes, and restores various surfaces such as leathers, vinyls, velours, fabrics, and plastics. This service is provided to residential and commercial clients, including car dealers, auto body shops, and furniture retailers, utilizing Fibrenew's proprietary system and trademarks.
Corporate History
Fibrenew USA Ltd. was organized in Canada in September 2005. Its predecessor and parent company, Fibrenew International Ltd., was organized in Canada in September 1998. An affiliate, Fibrenew Industries Ltd. (FIL), was originally organized in October 1985 and reincorporated in Alberta in 1995, offering Fibrenew franchises in Canada since 1987. Fibrenew International offered franchises in the United States from 1999 to 2005, and Fibrenew USA Ltd. has been offering franchises in the United States since January 2006, as part of a global network of approximately 300 franchises worldwide.
Financial Overview
Investment Range
$100,595 - $121,825
Franchise Fee (Low)
$42,300
Franchise Fee (High)
$47,000
Equipment Costs (Low)
$46,495
Equipment Costs (High)
$49,710
Working Capital
$1,788
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Fibrenew USA Ltd. has been operating at a consolidated net loss, with $1,280,314 in 2024 and $1,349,271 in 2023. As of September 30, 2024, the company had a consolidated working capital deficit of $1,699,578 (up from $1,118,653 in 2023) and a consolidated accumulated deficit of $10,544,171. These conditions raise substantial doubt about Fibrenew USA Ltd.'s ability to continue as a going concern, as its future operations are dependent on obtaining adequate financing and achieving profitable operations. The financial statements do not include adjustments that would be necessary if the company could not continue as a going concern.
Financing Details
Fibrenew USA Ltd. does not offer any direct or indirect financing to franchisees, nor does it guarantee any of their obligations to third parties.
Performance Metrics
Total US Locations
226
Franchised Units
226
Corporate Units
0
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Fibrenew USA Ltd. has no litigation history to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
Fibrenew USA Ltd. has no bankruptcy information to report. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew a Fibrenew franchise, franchisees must be in good standing with Fibrenew USA Ltd. and any of its related parties, as well as with the Manual. They must provide written notice of their intent to renew at least 90 days before the current agreement expires, including a picture of their current vehicle(s) and wrap(s). Any required vehicle signs must be updated. A non-refundable renewal processing fee of $500 is required, and franchisees must sign the then-current Franchise Agreement, which may have materially different terms, at least 30 days before expiration or 30 days after receiving it. Additionally, franchisees and any related parties must sign a general release of all known and unknown claims regarding past dealings with Fibrenew USA Ltd. and its related parties.
Training & Support Program
Franchisor Assistance
Before opening, Fibrenew USA Ltd. provides a training program for franchisees and their designated managers, makes its operations Manual available online with detailed instructions and forms, and offers access to online technical support resources. For new franchises, a start-up package containing necessary equipment and products is included in the initial fee. After opening, Fibrenew USA Ltd. ensures the availability of proprietary products, provides ongoing consultation, suggests pricing for services, and may offer opportunities to participate in Preferred Vendor Accounts. Franchisees also receive initial printed promotional materials, have their business listed on the official Fibrenew website, are provided with a 'Fibrenew' email address, and are encouraged to maintain social media profiles according to brand standards. Fibrenew USA Ltd. also offers mandatory continuing education courses annually.
Initial Training Hours
100
Training Location
Calgary, Alberta, Canada (in-person) or online
Ongoing Support
After opening, Fibrenew USA Ltd. ensures that proprietary products are available for franchisees and makes personnel available for consultation. It suggests pricing for services and offers franchisees the opportunity to participate in Preferred Vendor Accounts. Franchisees receive ongoing access to online technical support resources, including manuals, bulletins, a discussion board, and video tutorials. Additionally, Fibrenew USA Ltd. offers continuing education courses, with a minimum of one mandatory seminar per calendar year. The franchisor also maintains official Fibrenew websites to market the brand and lists the franchised businesses on these sites, providing a 'Fibrenew' email address and encouraging social media presence.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Exclusive
Territory Size Requirements
Fibrenew USA Ltd. defines its exclusive territories primarily by Zip Codes. The size is determined by various metrics, including population, population density, the number of commercial establishments, and driving times and distances. Generally, each territory will encompass a population of up to 300,000 people and will not exceed 100 driving miles between its furthest points.
Staffing Notes
Fibrenew USA Ltd. requires franchisees to always maintain a sufficient staff of trained employees and/or technicians to operate the Fibrenew Service according to brand standards. By the third year of operation, Fibrenew USA Ltd. recommends that for every 150,000 people in the territory, franchisees should add another work vehicle and a trained Fibrenew technician.