Steel Coated Floors Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$122,785 - $174,285
Franchise Fee
$19,000
Total US Locations
9
Business Summary
Steel Coated Floors operates a mobile-services business that specializes in providing proprietary epoxy flooring products and services. Steel Coated Floors primarily serves residential garages, but also handles industrial and commercial garages and floors. Franchisees operate from an approved geographical location and require a flexible warehouse space between 250 and 1,000 square feet for inventory and equipment storage, along with an office for management and sales.
Corporate History
Steel Coated Floors International, LLC was formed as a Delaware Limited Liability Company on April 24, 2024. The brand's foundation traces back to its predecessor, Steel Coated Floors Franchising, LLC, a Utah Limited Liability Company formed in September 2018. This predecessor, wholly owned by co-founders Mitchell Cypers and Manuel Cypers, operated an epoxy floor and concrete business in Ogden, UT, which began franchising nationally and has been the basis of the Steel Coated Floors International Franchise system since 2018. The current franchisor is marketed under Phoenix Franchise Brands, LLC, its corporate parent, and shares overlapping minority ownership interests and operations with several other home and pet services affiliates, including Fetch! Pet Care, Furry Cuts! Petmobile International, Door Renew International, Spray Foam Genie International, medspa810 Global, and Worried Bird International.
Financial Overview
Investment Range
$122,785 - $174,285
Franchise Fee (Low)
$19,000
Franchise Fee (High)
$59,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$26,785
Equipment Costs (High)
$49,785
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Steel Coated Floors' financial statements reflect a concerning financial condition. As of December 31, 2024, the company's cash balance was very low at $198, and it had negative working capital of approximately -$54,491 ($10,786 in current assets vs. $65,277 in current liabilities). This financial state is highlighted in the FDD's "Special Risks" section, which explicitly states that Steel Coated Floors' financial condition calls into question its ability to provide services and support to franchisees.
Financing Details
Steel Coated Floors does not offer any direct or indirect financing options to its franchisees for any portion of the franchise being offered.
Performance Metrics
Total US Locations
9
Franchised Units
8
Corporate Units
1
Avg Square Footage
625
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
13
Litigation Summary
Steel Coated Floors itself reports no litigation. However, several of Steel Coated Floors' affiliates and their executives, including Gregory A. Longe (CEO of Phoenix Franchise Brands and former CEO of Fetch! Pet Care, Door Renew, Furry Cuts! Petmobile, medspa810, and Spray Foam Genie) and Kevin Longe (CEO of Home Services for Phoenix Franchise Brands and former CEO of Spray Foam Genie), have been involved in recent and ongoing litigation. Since 2024, there are four pending cases: 1. Door Renew International, LLC and Longe Home Services Acquisitions, LLC faced a default judgment of $151,525 in September 2024 with a settlement due in May 2025, stemming from a dispute with a former franchisee regarding a repurchase agreement. 2. Spray Foam Genie International, LLC, Kevin Longe, Gregory A. Longe, and others are currently in arbitration, initiated in July 2024, facing claims of over $1,000,000 in damages by franchisees. Allegations include breach of contract, violations of the Michigan Franchise Investment Law (misrepresentation of investment cost and financial performance), conversion of brand development and advertising funds, and fraud. 3. Fetch! Pet Care, Inc. and Greg Longe are defending a lawsuit filed in July 2024 by an independent association of franchisees, alleging violations of the right to associate under California Franchise Investment Law. 4. Fetch! Pet Care, Inc. and Fetch! Managed Services, LLC are facing an arbitration demand by 49 current and former franchisees, filed in 2024, claiming violations of the Michigan Franchise Investment Law, common law fraud, breach of contract, conversion, and breach of good faith. Franchisees are seeking rescission of their agreements and monetary damages. Additionally, Fetch! Pet Care, Inc. (an affiliate) initiated three lawsuits against its franchisees in 2024: one to enforce a non-compete covenant and two to collect royalty payments. Historically, Fetch! Pet Care, Inc. also had six cases between 2009 and 2011 involving its prior owners, related to unregistered franchise sales in various states (Maryland, California, Illinois, Rhode Island, Virginia, and Hawaii). These resulted in offers of rescission to franchisees and payment of administrative fees or penalties to state agencies. Steel Coated Floors states these older matters from prior Fetch! Pet Care owners have no impact on its current brand.
Bankruptcy History
Steel Coated Floors has no bankruptcy history to report as no bankruptcy is required to be disclosed in this disclosure document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Steel Coated Floors franchisees must ensure the franchisor is still offering franchises and must provide written notice of their intent to renew between 6 months and 1 year before their current term ends. Franchisees must be in good standing, meaning they are not in default of any agreements and have substantially complied with all terms. They are required to refurbish their business, including equipment and vehicles, to meet the franchisor's then-current brand standards. Franchisees must also sign the franchisor's current form of franchise agreement (which may include materially different terms for fees, but will waive the initial franchise fee). A Renewal Fee of $10,000 is required, and franchisees must sign a general release of claims (if permitted by law). Finally, they must meet any current Steel Coated Floors qualification and training requirements designated for renewing franchisees.
Training & Support Program
Franchisor Assistance
Steel Coated Floors provides comprehensive assistance to its franchisees, starting before the business opens. This includes helping to determine and designate the franchisee's territory, supplying an Initial Marketing Kit, an Initial Inventory Package, and an Equipment Package upon payment. They also provide a list of all required items and approved suppliers and grant access to their Operations Manual, which details the business system. Initial training, which must be completed to the franchisor's satisfaction, is provided for the franchisee and up to two additional personnel, typically held in Livonia, MI. After the business opens, Steel Coated Floors continues to provide ongoing support. This includes maintaining and updating standards, specifications, and approved suppliers for all equipment, supplies, and products, as well as an updated list of approved products and services. The franchisor offers initial training for replacement staff and managers and may provide additional and ongoing training. They also have the option to organize an annual conference for all franchisees and staff. If a franchisee fails to resolve a client dispute, Steel Coated Floors may investigate and require actions to resolve the matter. The franchisor provides continuous advisory assistance on technical, operational, sales, personnel, and accounting issues, and provides updates to the Operations Manual. They review and approve franchisee advertising materials and provide recommended pricing for products and services. Additionally, the franchisor approves any replacement Designated Manager for the franchised business.
Initial Training Hours
72
Training Location
Livonia, MI
Ongoing Support
After their business opens, Steel Coated Floors franchisees receive ongoing support in several key areas. This includes continuous advisory assistance on technical, operational, sales, personnel, and accounting matters, as well as access to updates and changes to the Operations Manual. The franchisor reviews and approves all franchisee advertising materials and provides recommended pricing for products and services. Steel Coated Floors may offer additional and ongoing training for staff and managers and may organize annual conferences for all franchisees and staff. If a franchisee cannot resolve a client dispute, the franchisor may intervene to investigate and help resolve the issue. Franchisees are required to contribute to a systemwide Brand Development Fund, which Steel Coated Floors administers for advertising and promotional activities, and must also meet local advertising spending requirements, which may be directed to franchisor-designated vendors.
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
Full-Time
Territory Type
Protected
Territory Size Requirements
Steel Coated Floors grants franchisees a protected territory defined as a geographic area containing a population of about 400,000 people.
Staffing Notes
Steel Coated Floors requires that either the franchisee or a Designated Manager personally oversee the day-to-day operations of the business. This individual must dedicate their full-time attention and best efforts to the franchised business. If the franchisee delegates these responsibilities, the Designated Manager is prohibited from seeking or holding any other employment or engaging in other business activities. The franchised business must always be staffed with at least one individual who has successfully completed the initial training program. Franchisees are also required to hire a dedicated salesperson who will handle sales, community networking, and implementing the franchisor's sales programs to grow the local business. All personnel decisions, including hiring, firing, scheduling, and compensation, are the sole responsibility of the franchisee. Before hiring, franchisees must conduct background checks and drug screenings for prospective employees. Additionally, any employees and subcontractors with access to confidential information are required to sign confidentiality and non-competition agreements.