Risk Score
Pending analysis
Investment Range
$120,750 - $316,500
Franchise Fee
$30,000
Min Cash Required
$10,000
Total US Locations
43
Business Summary
Garage Living specializes in the design, supply, and installation of residential garage organization systems, cabinetry, concrete floor coatings, car lifts, garage doors, and related renovation services. Garage Living operates from a light industrial, commercial, or retail space, which includes a showroom, office space, and warehouse space. The business targets residential and commercial customers with above-average incomes and may also sell products directly for customer pick-up.
Corporate History
Garage Living Franchise Systems USA, Inc. was incorporated in Delaware on July 28, 2014. The company began selling franchises in the United States in February 2015. Its affiliate, Garage Living of Ontario Inc., a Canadian corporation, has been operating a business of the same type since September 2005.
Financial Overview
Investment Range
$120,750 - $316,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$10,000
Royalty %
6.5%
Marketing %
2%
Equipment Costs (Low)
$50,000
Equipment Costs (High)
$130,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Garage Living Franchise Systems USA, Inc.'s financial condition raises questions about its ability to provide services and support to franchisees, as explicitly stated in the FDD's Special Risks section. While its financial statements have received an unqualified audit opinion, the company's shareholder equity as of December 31, 2023, is very low at $1,847, down from $52,388 in 2022, and it reported a net loss of $50,541 in 2023. This low equity has led states like Michigan and Maryland to mandate financial assurances or deferral of initial fees for franchisees until the franchisor completes its pre-opening obligations.
Financing Details
Garage Living Franchise Systems USA, Inc. does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations. While Garage Living Franchise Systems USA, Inc. may refer franchisees to third-party financing sources for equipment purchases or leases, it has no control over those third parties' lending decisions and does not receive any referral fees.
Performance Metrics
Total US Locations
43
Franchised Units
43
Corporate Units
0
Avg Square Footage
3,500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Garage Living Franchise Systems USA, Inc. has disclosed two litigation cases. The first case, filed in Texas on November 6, 2018, involved GLF USA suing former franchisees for outstanding payments, forming a competing company, and using confidential intellectual property. The court issued a temporary restraining order in December 2018 and a temporary injunction in January 2019, ultimately entering a permanent injunction against the defendants on November 15, 2019, which closed the case. The second case, filed in Florida on February 23, 2024, by Garage Living Franchise Systems USA, Inc. and its affiliate, was against a former franchisee and associated parties. This lawsuit alleged violations of post-term non-competition agreements, trademark infringement, and trade dress infringement. The parties agreed to a Consent Injunction and Dismissal Order, where the former franchisee committed to comply with non-competition obligations, co-defendants agreed to business limitations, and certain intellectual property was transferred. The defendants also agreed to make a confidential payment to Garage Living Franchise Systems USA, Inc. and its affiliate to resolve the litigation.
Bankruptcy History
Garage Living Franchise Systems USA, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Garage Living franchise agreement, franchisees must provide written notice of their intention to renew between 9 and 12 months before the current term ends. They must be in good standing and in full compliance with the Franchise Agreement at the time of notice and at the end of the term. Franchisees are required to refurbish or replace their premises, vehicle, and/or equipment to meet Garage Living's then-current standards, which may involve substantial costs. They must also sign the franchisor's then-current form of successor franchise agreement and any other required legal documents, which may contain materially different terms and conditions. Additionally, franchisees must pay Garage Living's reasonable legal fees and disbursements and successfully complete any further training programs required by the franchisor. Upon signing a successor agreement, Garage Living may adjust the boundaries of the franchisee's Designated Territory based on re-evaluated demographics.
Training & Support Program
Franchisor Assistance
Garage Living Franchise Systems USA, Inc. provides comprehensive support to its franchisees. Before opening, the franchisor assists with approving the business location and defining the Designated Territory. It also provides a design plan for the showroom and overall build-out. Initial training for up to three people, including the Designated Operator, is offered at no additional fee and covers all aspects of the system. Franchisees receive the confidential Operations Manual and a Design Plan outlining specifications for vehicles, equipment, tools, initial inventory, and the computer system. The franchisor also helps plan the grand opening promotional campaign. Ongoing support includes providing a "micro-site" website for business promotion. Garage Living offers guidance and assistance through periodic communication (telephone, email, written) and visits, covering topics like product and service offerings, business improvements, pricing strategies, and administrative procedures. Franchisees also receive periodic refresher training, and additional on-site training can be provided if requested or deemed necessary (at the franchisee's expense). The franchisor suggests product and service pricing, may set maximum prices, and holds franchisee conventions for training and new product introductions. Furthermore, Garage Living introduces new products and services and administers the Marketing Fund.
Initial Training Hours
134
Training Location
Franchisor headquarters in Vaughan, Ontario, Canada, and the franchisee's business location.
Ongoing Support
After opening, Garage Living Franchise Systems USA, Inc. provides ongoing guidance and assistance through periodic correspondence, including telephone, email, and written communications, as well as periodic visits. This support covers various topics such as product and service offerings, business improvements, pricing, administrative procedures, and operating problem resolution. The franchisor also offers periodic refresher training and may provide additional on-site training or assistance if requested or deemed necessary (for which franchisees pay a daily fee and expenses). Garage Living holds franchisee conventions at its headquarters or other designated locations for additional training, recertification, and to introduce new products or services. The franchisor also periodically introduces new products and services and administers the Marketing Fund.
Franchise Requirements
Ideal Candidate Profile
Garage Living Franchise Systems USA, Inc. seeks franchisees whose Designated Operator holds at least a 75% ownership interest in the business and possesses decision-making authority. The Designated Operator must attend and successfully complete the franchisor's initial training program and is expected to devote full-time effort to the management and operation of the franchise. Ideal candidates should be prepared to meet state and local licensing requirements, which may include obtaining a state contracting license and demonstrating several years of prior relevant experience in the home improvement field.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Exclusive
Staff Count
3
Territory Size Requirements
Garage Living Franchise Systems USA, Inc. defines its primary market territories to include an area with a minimum of 75,000 and a maximum of 170,000 qualified households. These qualified households are identified based on factors such as household income, home values, postal codes, shopping patterns, and occupant age. Secondary market territories are defined as containing a minimum of 25,000 and a maximum of 75,000 qualified households.
Staffing Notes
Garage Living Franchise Systems USA, Inc. requires the franchisee's Designated Operator to attend and complete the initial training program and dedicate full-time effort to managing and operating the business. Each franchised business must have a Designated Operator with a 75% ownership interest and decision-making authority. The franchisor also specifies that the Designated Operator and other key employees must sign confidentiality and non-competition agreements. The Operations Manual provides extensive details on human resources, including job descriptions for roles like Franchisee/Operations Manager, Sales Consultant/Design Consultant, Lead Installer, Assistant Installer, and Office Assistant. It also covers guidelines for working with independent contractors, EEOC compliance, wage and labor laws, harassment prevention, recruiting, interviewing, making job offers, employee training, personnel policies, recommended commission systems for sales staff, time-tracking, uniform and dress codes, performance evaluations, and disciplinary/termination procedures.