Risk Score
Pending analysis
Investment Range
$131,750 - $256,500
Franchise Fee
$17,500
Min Cash Required
$20,000
Total US Locations
58
Business Summary
PayMore operates retail stores that buy used and broken consumer electronics from individuals and businesses. The stores then resell these electronics back to consumers and businesses through both in-store and online channels, utilizing PayMore's specific techniques, branding, and systems.
Corporate History
PayMore Group LLC was formed on August 24, 2020. Its predecessor, PayMore Enterprises, LLC, offered and sold one franchise in March 2020. An affiliate, Trading Post LI, Inc., was formed in August 2010 and operated PayMore outlets similar to the offered franchise since 2011. PayMore Group LLC itself began offering franchises in September 2020.
Financial Overview
Investment Range
$131,750 - $256,500
Franchise Fee (Low)
$17,500
Franchise Fee (High)
$35,000
Minimum Cash Required
$20,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$45,500
Equipment Costs (High)
$95,500
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The PayMore FDD includes a special risk disclosure indicating that PayMore's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support. The combined balance sheets show a significant accumulated deficit and negative members' equity for both 2024 and 2023, with current liabilities exceeding current assets, suggesting challenges in its financial health.
Financing Details
PayMore does not offer any direct or indirect financing to its franchisees. PayMore also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
58
Franchised Units
57
Corporate Units
1
Avg Square Footage
1,650
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
PayMore has no litigation required to be disclosed in this item.
Bankruptcy History
PayMore has no bankruptcy history required to be disclosed in this item.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew, PayMore franchisees must provide notice of their wish to enter a successor agreement, be current in all payments, and not be in default of their Franchise Agreement. They may be required to renovate or upgrade their store, sign a general release, sign a successor franchise agreement, and pay a successor agreement fee.
Training & Support Program
Franchisor Assistance
PayMore provides pre-opening assistance that includes written materials for site and market analysis, optional on-site location evaluations (at the franchisee's cost), prototype design plans, and review of grand opening advertising campaigns. PayMore also provides installation and training for proprietary software and technology systems for a fee. Franchisees' Designated Controlling Principal and General Manager must attend a mandatory training program in Massapequa, NY (for a fee, with trainees' travel/lodging/meals at franchisee's expense). Ongoing assistance includes advice and written materials (like Manual updates), training programs and seminars (mandatory, at franchisee's expense), annual franchisee meetings (mandatory, at franchisee's expense), and optional on-site training (at franchisee's expense). PayMore also administers a Worldwide Creative Marketing Fund and may determine minimum and maximum prices for products and services.
Initial Training Hours
60
Training Location
Massapequa, NY
Ongoing Support
After opening, PayMore provides ongoing advice and written materials, including updates to its Confidential Operations Manual. PayMore also offers training programs and seminars, which may be mandatory for franchisees and their staff, and annual franchisee meetings, all at the franchisee's expense for attendance and travel. On-site training is available upon request or if deemed necessary by PayMore, also at the franchisee's expense.
Franchise Requirements
Ideal Candidate Profile
PayMore seeks franchisees who will designate a Controlling Principal who is at least a 10% equity owner and responsible for general oversight. This Designated Controlling Principal, or another General Manager, must have at least three years of previous experience in electronic store management or similar ownership experience.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
PayMore's Designated Territory will be a minimum radius of one-half mile for urban settings and one mile for suburban settings for a single franchise unit sale.
Staffing Notes
PayMore requires franchisees to employ a minimum of one full-time General Manager who is responsible for the on-premise supervision and daily operations of the store. This General Manager must meet PayMore's educational and business criteria, be individually acceptable to PayMore, and complete their training requirements. A Principal can serve as the General Manager if they have at least three years of experience in electronic store management or similar ownership experience. However, the Designated Controlling Principal (an owner with at least 10% equity responsible for general oversight) cannot also be the General Manager. Franchisees must also hire additional personnel as needed to operate and manage the store.