Risk Score
Pending analysis
Investment Range
$255,350 - $653,800
Franchise Fee
$42,750
Total US Locations
46
Business Summary
Mobility City is a business that provides mobile repairs, rentals, sales, white glove delivery, and sanitization for mobility equipment and other related products and services. Mobility City franchisees operate a retail showroom for these products and services, in addition to using mobile uniformed technicians to provide services, catering to individuals and businesses needing mobility equipment services, particularly those seeking in-home service.
Corporate History
Mobility City Holdings, Inc. was established as a Florida corporation on March 9, 2017. The company operates under its corporate name and the Mobility City trade name. Mobility City Holdings, Inc. began offering franchises in October 2017. The franchisor has no predecessors or parent company.
Financial Overview
Investment Range
$255,350 - $653,800
Franchise Fee (Low)
$42,750
Franchise Fee (High)
$267,500
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$32,000
Equipment Costs (High)
$124,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financing Details
Mobility City Holdings, Inc. does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
46
Franchised Units
45
Corporate Units
1
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Count
1
Litigation Summary
Mobility City Holdings, Inc. has had one disclosed litigation case. This case, an arbitration demand filed on March 3, 2020, involved a former franchisee and its owners who claimed Mobility City Holdings, Inc. did not advise them about certain license requirements, stated the business was home-based, and omitted material information from the Franchise Disclosure Document. The parties settled this case in April 2020.
Bankruptcy History
Mobility City Holdings, Inc.'s Chief Operating Officer, Vincent L. Baratta, filed for a personal Chapter 7 bankruptcy on January 12, 2018, in connection with a divorce. The case was discharged on April 13, 2018.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Mobility City Holdings, Inc. franchisees must be in compliance with their Franchise Agreement terms and provide 180 days' prior written notice of their request to renew. They must also sign the franchisor's then-current Franchise Agreement and related agreements for the renewal term, sign a general release in the franchisor's favor, pay a renewal fee, and remodel and upgrade their showrooms to meet current brand standards and specifications. Additionally, franchisees need to secure and possess the legal right to occupy their showroom locations and meet all other renewal requirements. Franchise owners must also be in compliance with their individual agreements and personally guarantee the terms of the renewal Franchise Agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Mobility City Holdings, Inc. provides pre-opening assistance to franchisees, including granting the right to operate within a designated territory, providing access to its confidential operations manuals, and reviewing and approving proposed showroom locations. The franchisor also provides lists of approved suppliers, distributors, signage, equipment, furniture, and fixtures, and identifies the franchisee's business on its website. Initial training is provided for the managing owner, one designated manager, and one additional person. After opening, Mobility City Holdings, Inc. may provide supplemental training, communicate operating standards, marketing standards, and approved vendors, and may coordinate an annual system conference. The franchisor also administers marketing funds and reserves the right to designate pricing and operating hours. However, Mobility City Holdings, Inc. does not provide assistance with hiring and training employees.
Initial Training Hours
59
Training Location
Boca Raton, Florida
Ongoing Support
After opening, Mobility City Holdings, Inc. offers ongoing support through supplemental training, which may be in-person or remote and may incur a fee. They also provide initial training for replacement operating managers. The franchisor establishes and communicates operating standards, marketing standards, and approved vendors, and administers system-wide marketing funds. Mobility City Holdings, Inc. may coordinate an annual system conference, which franchisees are required to attend and pay a fee for. The franchisor also reserves the right to designate maximum, minimum, and promotional pricing and operating hours. While additional product and technical courses are offered remotely and in-person, attendance is typically not required.
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
Supervisory
Territory Type
Protected
Staff Count
5
Territory Size Requirements
Mobility City Holdings, Inc. defines a franchisee's designated territory based on population, initially comprising approximately 600,000 people. Franchisees have the option to add more people to their territory in increments of 100,000, up to a maximum of approximately 5,000,000 people, with each increment increasing the initial franchise fee by $5,000. Territories are typically identified by counties or zip codes, but may also be defined by boundary streets, highways, or other designated market areas and recognizable demarcations.
Staffing Notes
Mobility City Holdings, Inc. franchisees are responsible for managing and supervising their own employees, ensuring that all staff wear approved uniforms and maintain system standards for products and services. Each business must have at least one full-time technician per vehicle. Initially, franchisees need to hire one technician, one product consultant, and one utility person before their main showroom opens. A second product consultant is required within 90 days, and a second technician within 180 days after the main showroom opening. If additional satellite showrooms are opened, each requires an additional technician and product consultant. Franchisees are solely responsible for all hiring, training, compensation, and termination decisions for their personnel. Owners and technicians must obtain AMRG Assistive Mobility Technician Certification, and all employees must complete a 2-hour orientation program within two weeks of hiring.