Schooley Mitchell Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$70,500 - $262,750
Franchise Fee
$68,000
Total US Locations
227
Business Summary
SCHOOLEY MITCHELL® operates a consulting business that specializes in helping other businesses reduce their costs across various expense categories, such as telecommunications, merchant services, shipping, waste management, and office supplies. SCHOOLEY MITCHELL® offices review clients' existing services and expenses, then provide detailed reports with solutions to improve systems and reduce overall costs.
Corporate History
SCHOOLEY MITCHELL was founded as 1073355 Ontario Limited and incorporated in Ontario, Canada, on April 25, 1994. The company began operating its own SCHOOLEY MITCHELL® location at its head office in April 2004. In the same month and year, SCHOOLEY MITCHELL started offering franchises for its cost reduction consulting business. The company has not engaged in any other business activities or offered franchises in different lines of business.
Financial Overview
Investment Range
$70,500 - $262,750
Franchise Fee (Low)
$68,000
Franchise Fee (High)
$250,000
Royalty %
8%
Marketing %
2%
Equipment Costs (High)
$2,000
Working Capital
$1,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for SCHOOLEY MITCHELL indicate a healthy financial position with positive working capital for both fiscal years ending February 28, 2023, and February 28, 2024. The auditors did not raise any substantial doubt about SCHOOLEY MITCHELL's ability to continue as a going concern.
Financing Details
SCHOOLEY MITCHELL does not offer any direct or indirect financing to its franchisees. Additionally, SCHOOLEY MITCHELL does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
227
Franchised Units
227
Corporate Units
0
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
SCHOOLEY MITCHELL has had two notable legal matters. In 2016, a former franchisee sued SCHOOLEY MITCHELL for misrepresentation and failure to comply with franchise disclosure laws. The Ontario Superior Court of Justice ruled against SCHOOLEY MITCHELL, leading to a settlement in May 2018 where SCHOOLEY MITCHELL paid $100,000 plus $20,000 for costs (Canadian dollars). In September 2019, the New York Attorney General initiated an inquiry into SCHOOLEY MITCHELL for selling a franchise in New York while its registration had lapsed. SCHOOLEY MITCHELL cooperated, agreed to cease franchise sales in New York until re-registered or exempt, offered rescission to the affected franchisee, and paid a $12,000 penalty to the State of New York.
Bankruptcy History
SCHOOLEY MITCHELL has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, SCHOOLEY MITCHELL franchisees must provide written notice 12 months in advance, make any necessary updates to their business to meet current brand standards, and ensure they are not in default of any agreements or monetary obligations to SCHOOLEY MITCHELL. They will also need to sign a general release of claims against SCHOOLEY MITCHELL and execute the then-current Franchise License Agreement, which may include different terms and fees. A renewal fee of $2,500 is also required.
Training & Support Program
Franchisor Assistance
SCHOOLEY MITCHELL provides both pre-opening and ongoing support to its franchisees. Before opening, SCHOOLEY MITCHELL grants the franchise license, provides access to its Operations Manual, and offers an introductory training program for up to three trainees, for which franchisees cover their own travel, lodging, and meals. While SCHOOLEY MITCHELL advises on site selection, it does not select or approve locations, nor does it assist with permits or construction. It also provides initial marketing materials and may designate a computerized accounting system. Ongoing support includes general advisory assistance for operations, advertising, and promotion, along with updates to the Operations Manual. SCHOOLEY MITCHELL administers a mandatory Quick Start and Mentoring Business Development Program (RAMP) to assist with business launch, sales, marketing, and client development. The franchisor approves local advertising, maintains quality standards, and provides a non-exclusive license for proprietary analysis, sales, and marketing software. SCHOOLEY MITCHELL may also coordinate optional and mandatory continuing education and training programs, including an annual meeting, for which franchisees are responsible for related costs and a registration fee. Inspections of locations may also occur to ensure compliance with system standards.
Initial Training Hours
44
Training Location
Stratford, ON, Canada, or virtual
Ongoing Support
After opening, SCHOOLEY MITCHELL provides ongoing general advisory assistance for operations, advertising, and promotion, including updates to the Operations Manual. The franchisor strives to maintain high-quality standards, which may involve conducting inspections. Franchisees participate in the mandatory RAMP (Rapid Accelerated Mentoring Program), which offers customized training and support for business operations, analysis, sales, marketing, and client development. SCHOOLEY MITCHELL may also coordinate continuing education meetings and an annual conference, for which franchisees pay attendance costs. Franchisees also receive a non-exclusive license to use SCHOOLEY MITCHELL's proprietary analysis, sales, and marketing software.
Franchise Requirements
Ideal Candidate Profile
SCHOOLEY MITCHELL seeks different types of franchisees depending on the franchise model. For standard franchises, candidates are expected to operate a full-time professional consulting business and dedicate full-time effort to its operation and supervision. For builder franchises, candidates can operate the business part-time while maintaining other employment. For development franchises, the owner can manage up to 10 satellite offices by hiring or subcontracting for services, although a full-time, approved manager must oversee the main licensed business.
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
Non-Exclusive
Territory Size Requirements
SCHOOLEY MITCHELL typically defines territories by approving one franchise location per 200,000 residents within a specific area, which consists of various counties or zip/postal codes. For example, a market with 1,000,000 residents might have up to 5 SCHOOLEY MITCHELL offices. The specific boundaries and density can be adjusted at the franchisor's sole discretion.
Staffing Notes
For standard SCHOOLEY MITCHELL franchises, the franchisee or an approved, fully-trained manager must dedicate full-time effort to operating and supervising the business. Builder franchisees have more flexibility, being permitted to operate on a part-time basis while holding other employment. Development franchisees require a full-time, approved manager for the licensed business, but the owner can hire or subcontract for services at satellite locations. All employees, subcontractors, or partners active in the business must successfully complete the Introductory Training Program, with at least one person attending in person or virtually, and others through distance learning.