Social Indoor Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$85,500 - $310,700
Franchise Fee
$45,000
Total US Locations
56
Business Summary
Social Indoor Franchising, LLC offers a franchise for operating a Social Indoor business that specializes in the sale and maintenance of indoor print and digital advertising services. Franchisees place these advertisements in various public facilities such as restaurants, bars, and other businesses within a specific geographic territory.
Corporate History
Social Indoor Franchising, LLC was incorporated in Minnesota on July 26, 2019. The company operates businesses similar to the franchise offering under the name Social Indoor since its inception and currently has seven company-owned locations. Social Indoor, LLC, the parent company, acted as a predecessor for one day during the transfer of the franchise business from AllOver Media Franchising, LLC on August 20, 2019. AllOver Media Franchising, LLC had been operating a similar franchise business since 2002.
Financial Overview
Investment Range
$85,500 - $310,700
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$95,000
Royalty %
6%
Equipment Costs (High)
$4,400
Working Capital
$120,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's 'Special Risk' section indicates that Social Indoor Franchising, LLC's financial condition, as shown in its financial statements, raises questions about the franchisor's ability to provide services and support to franchisees. However, the company's financial statements themselves have received an unqualified opinion from the independent auditor.
Financing Details
Social Indoor Franchising, LLC only offers financing for franchisees purchasing existing, corporately owned franchise territories; financing is not available for new or undeveloped markets. For qualifying purchases of existing markets, Social Indoor Franchising, LLC may finance up to 90% of the initial fee over 60 months with 0% interest. A minimum 10% down payment is required, along with a personal guarantee. There are no prepayment penalties. In the event of default, the unpaid balance, attorney fees, and court fees become due, and the franchisee may lose legal rights.
Performance Metrics
Total US Locations
56
Franchised Units
46
Corporate Units
10
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Social Indoor Franchising, LLC has been involved in two legal matters. On March 6, 2023, Social Indoor, LLC and Anthony Jacobson filed a lawsuit against AllOver Media, Inc., concerning non-competition covenants related to the purchase of the franchise system. This case was settled on November 13, 2024, with new agreements on pricing and revised restrictive covenants. Additionally, on September 11, 2024, Social Indoor Franchising, LLC entered into a Consent Order with the State of South Dakota, resulting in a $2,500 fine because its registration had inadvertently lapsed when selling a franchise.
Bankruptcy History
Social Indoor Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, Social Indoor Franchising, LLC franchisees must provide written notice at least 6 months before the current term expires. They must sign the then-current franchise agreement and other legal documents, which may contain materially different terms. Franchisees must also be in full compliance with their existing agreement and operating standards, pay all outstanding monetary obligations, agree to make reasonable expenditures to update their display boards and trademarked items to current standards, attend any required training at their own expense, have continuously operated their business, maintain possession of suitable premises, or secure new approved ones, and sign a general release of claims. A renewal fee of $2,500 is due at the end of every ten-year period.
Training & Support Program
Franchisor Assistance
Social Indoor Franchising, LLC provides pre-opening assistance by granting a license to operate within a designated territory, offering initial training, supplying a list of approved products and suppliers, and loaning an Operations Manual. The company also provides a Digital Starter Kit, which includes demo monitors, business cards, sales/venue kits, and logo wear. For ongoing support, Social Indoor Franchising, LLC furnishes updated manual materials and supplier lists periodically, conducts necessary business evaluations, and offers additional training. Weekly continuing training calls are also provided, or offered as needed by franchisee demand. Franchisees may be required to attend additional mandatory training programs up to twice a year and an annual convention.
Initial Training Hours
50
Training Location
Minnetonka, Minnesota or via Zoom call
Ongoing Support
Social Indoor Franchising, LLC provides ongoing support through periodic updates and revisions to its Manuals and approved products/suppliers lists. The company evaluates businesses as necessary and offers additional training. Weekly continuing training calls are also held, or as needed by franchisee demand. Franchisees may be required to attend additional mandatory training programs up to twice a year and an annual convention.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
Social Indoor Franchising, LLC defines its Designated Territories based on population using current U.S. census data and zip code mapping. Territories are classified as Metro, Micro, or Rural based on classifications from the U.S. Office of Management and Budget (OMB). The franchise fee varies based on the population size of the territory.
Staffing Notes
Social Indoor Franchising, LLC requires franchisees to hire and supervise efficient, competent, and courteous employees, for whom the franchisee is solely responsible for wages, commissions, and incentives, with no liability to the franchisor. Staffing levels can vary based on the Designated Territory's size. All key employees must sign a confidentiality agreement. The franchisor assumes the franchisee might have one full-time or part-time employee for higher additional funds.