Miracle Method Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$101,950 - $147,050
Min Cash Required
$5,050
Total US Locations
202
Business Summary
Miracle Method businesses specialize in refinishing and restoring various surfaces such as bathtubs, sinks, showers, tile, and countertops in residential and commercial properties. This business model offers customers a faster and more cost-effective alternative to replacing these surfaces. Franchisees operate a physical office, showroom, and workshop to showcase their products and services, but most of the restoration work is performed at the customer's location.
Corporate History
Miracle Method, LLC was originally founded as Pistor & Associates, Inc., a Texas corporation, on December 6, 1989. The company converted to a Texas limited liability company and changed its name to Miracle Method, LLC on November 21, 2023. Miracle Method began offering franchises for its businesses in September 1996. The company was acquired by Threshold Brands, LLC on or about November 22, 2023.
Financial Overview
Investment Range
$101,950 - $147,050
Franchise Fee (High)
$50,000
Minimum Cash Required
$5,050
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$6,000
Equipment Costs (High)
$18,000
Working Capital
$9,450
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Miracle Method's parent company, HS Group Holding Company, LLC, has long-term debt with a balloon payment maturing on December 23, 2025. Management is currently negotiating with the lender to extend this maturity date. Additionally, the company's financial statements for December 31, 2023, were restated to correct an overstatement of accounts receivable, which led to a decrease in retained earnings of $1,895,100 as of January 1, 2024.
Financing Details
Miracle Method does not offer general financing arrangements to its franchisees. However, it may offer financing for up to the full amount of the Initial Franchise Fee to qualified and creditworthy prospects. If a franchisee accepts this financing, they must sign a Promissory Note, and their owners and spouses must guarantee the payment. The note is repayable in monthly installments over up to 24 months, with an annual interest rate of 12%. Late payments incur a 5% charge, and after 30 days, an additional 5% charge is applied. A default on the Promissory Note can also lead to the termination of the Franchise Agreement.
Performance Metrics
Total US Locations
202
Franchised Units
202
Corporate Units
0
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Miracle Method has no litigation history to disclose for itself, its predecessors, parents, affiliates, or any persons listed in Item 2, as no litigation is required to be disclosed in this item.
Bankruptcy History
Miracle Method has no bankruptcy history to disclose for itself, its predecessors, parents, affiliates, or any persons listed in Item 2.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Miracle Method franchisees must provide written notice at least six months before the current term expires. They must be in good standing, meaning they haven't defaulted on any agreements or received three or more notices of default during the term, and all fees and amounts owed to Miracle Method or its affiliates must be paid. Franchisees also need to maintain possession of their premises for the new term and agree to update their business and location to meet Miracle Method's then-current System Standards, which may include remodeling, expanding the premises, or replacing operating assets. A renewal fee of $5,000 is required, and franchisees must sign Miracle Method's then-current franchise agreement, a Renewal Addendum, a Waiver and Release of Claims Agreement, and other ancillary documents, noting that the new agreement may have materially different terms and conditions.
Training & Support Program
Franchisor Assistance
Miracle Method provides extensive support to its franchisees. Before opening, Miracle Method designates the franchisee's territory, provides mandatory specifications for the business's design and branding, identifies required operating assets, computer systems, and supplies, and grants access to its confidential operations manual. It also assists with pre-opening marketing and provides an Initial Training Program for the franchisee and up to four staff members. Miracle Method loans a telephone number for business use. On an ongoing basis, Miracle Method offers guidance on operating procedures, purchasing, advertising/marketing, and administrative matters. It continually updates System Standards and licenses the use of its Marks and confidential information. Miracle Method establishes an internet presence for the business and offers supplemental training for technicians and staff during the first two years of operation. Optionally, Miracle Method may update the System, conduct periodic on-site visits, administer the Brand Fund, host national conferences, suggest pricing, and administer the National Accounts Program.
Initial Training Hours
120
Training Location
Corporate headquarters in Colorado Springs, Colorado
Ongoing Support
After opening, Miracle Method provides ongoing guidance on its standards, operating procedures, and methods, covering purchasing, advertising, marketing, and administrative tasks, often through the Manual, electronic media, phone calls, or meetings. It continually updates System Standards and licenses the use of its Marks and confidential information. Miracle Method establishes an internet presence for the business and offers supplemental training for up to ten technicians or staff members during the first two years of operation. Franchisees, or their managing owners or designated managers, are required to attend various additional training programs, courses, workshops, certification programs, and continuing education courses, including annual Conventions (up to 4 days, with fees up to $1,500 per attendee) and workshops (up to 3 days, with fees ranging from $300 to $800 per person), at their own expense. Remedial training may also be required if a business is not compliant. Training and certification are also available for participation in the National Accounts Program.
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
Full-Time
Territory Type
Protected
Staff Count
3
Territory Size Requirements
Miracle Method grants franchisees a designated territory of approximately 150,000 households, determined using the most recently available US Census report and other population statistical sources. The boundaries of each territory are defined by one or more adjacent zip codes. In densely populated metropolitan areas, territories may be smaller, while less densely populated urban areas may have larger territories.
Staffing Notes
Miracle Method recommends that franchisees hire at least two technicians and one front office person before attending the initial training program. The franchise is required to be managed by the franchisee themselves or by a Managing Owner who holds at least a 25% (or 51% in some cases) ownership interest and voting power in the entity. This individual must operate the business on a full-time basis. If a Designated Manager is employed, the franchisee or Managing Owner must still attend all training, and if the Designated Manager leaves, the franchisee or Managing Owner must manage the business full-time until a replacement is hired and trained to Miracle Method's satisfaction.