Risk Score
Pending analysis
Investment Range
$58,050 - $107,900
Franchise Fee
$20,000
Total US Locations
23
Business Summary
Seal King offers franchised businesses that apply seal coating material to driveways and parking areas. Seal King businesses provide asphalt driveway repair, seal coating, and related preventative maintenance services for residences and businesses. These services include seal coating, crackfilling, oil spot treatment, grass edging, and patching, all offered through a unique 10-point maintenance system.
Corporate History
Seal King began as a sole proprietorship in 1991, eventually incorporating as Seal King, Incorporated on April 17, 1997. The company started offering Seal King franchises in 1997 and has focused primarily on franchising the Seal King business system since then.
Financial Overview
Investment Range
$58,050 - $107,900
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$20,000
Royalty %
7%
Equipment Costs (Low)
$26,000
Equipment Costs (High)
$67,000
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Based on the provided financial statements, Seal King appears to be in a stable financial position. The auditor has provided an unqualified opinion on the financial statements for the years ending December 31, 2024, 2023, and 2022, indicating they present fairly in all material respects. The balance sheets show increasing checking/savings balances from $100,599 in 2022 to $223,687 in 2024, and total assets also show growth. The company has a note payable to a bank secured by a vehicle, with a manageable annual debt service. No specific concerns about liquidity or a "going concern" qualification were explicitly stated in the auditor's opinion.
Financing Details
Seal King does not offer any direct financing arrangements or guarantees for notes, leases, or obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
23
Franchised Units
23
Corporate Units
0
Franchising Since
1997
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Seal King has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Seal King has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
3 years
Renewal Term
3 years
Renewal Conditions
To renew, Seal King franchisees must provide written notice at least 90 days before the current Franchise Agreement ends. They must have fully complied with all terms and conditions of their Franchise Agreement and Standard Operating Procedures, including meeting the Gross Revenue Requirement. All financial obligations to Seal King and its affiliates must be paid on time throughout the term. Franchisees must also participate in any required additional training and agree to the terms of Seal King's then-current standard Franchise Agreement.
Training & Support Program
Franchisor Assistance
Seal King assists franchisees by designating their territory and providing a written schedule for initial supplies and equipment, along with a list of approved suppliers. Before opening, Seal King provides an initial training program covering business processes, advertising methods, estimating, scheduling, administration, and equipment operation and product application. This training consists of 8 hours of classroom instruction and 4 hours of on-site/field training. Franchisees are also loaned an Operations Manual containing mandatory and suggested standards. For ongoing support, Seal King may conduct inspections and offer consultation on marketing, advertising, accounting, and personnel issues as needed.
Initial Training Hours
9
Training Location
Lakeville, Minnesota
Ongoing Support
After opening, Seal King may periodically inspect the franchisee's business and provide consultation on marketing, advertising, accounting, personnel, and other business-related matters as needed. These visits are for protecting the brand and business system, not for day-to-day supervision, and Seal King will offer suggestions for improvement.
Franchise Requirements
Ideal Candidate Profile
Seal King seeks franchisees who can either actively participate in the day-to-day operation of their business or employ an approved General Manager who has successfully completed their initial training. The franchisee or their General Manager must dedicate a minimum of 20 hours per week to the business from April 1st to November 1st each year. Candidates must also meet Seal King's financial approval, personally guarantee all franchise obligations, and have no competing business interests.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
Seal King territories typically consist of one municipality. However, for municipalities with populations over 50,000 residents, Seal King may choose to divide the area into two or more territories. In such cases, the specific area designated by Seal King will define the franchisee's territory. The geographic boundaries are generally determined by the municipality's governing body.
Staffing Notes
Seal King requires franchisees to hire a sufficient number of suitable employees for their business. If the franchisee does not actively participate, they must employ an approved General Manager who has completed Seal King's initial training program. Either the franchisee or the General Manager must work a minimum of 20 hours per week in the business between April 1st and November 1st. Franchisees are fully responsible for all personnel decisions, including employment terms, work hours, and compensation, without influence from Seal King. All employees may be required to sign confidentiality agreements.