Supply Pointe Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$158,650 - $199,400
Franchise Fee
$44,550
Total US Locations
9
Business Summary
SUPPLY POINTe franchisees operate a business-to-business independent sales company that offers commercial clients a variety of services including packaging, logistics, transportation, inventory management, and industrial waste removal. SUPPLY POINTe connects these clients with a select network of trucking, freight forwarding, pallet, and industrial packaging companies to provide a wider menu of choices and potential savings. The business can be operated from a home office, primarily utilizing telephone and electronic methods for sales and marketing.
Corporate History
SUPPLY POINTe Franchising, LLC was organized in North Carolina on December 1, 2016, specifically for the purpose of franchising its business model. The underlying business model, which originated as TAPS (Transportation & Packaging Specialists), was first created by Matt Cahill in 2002, with the initial location opening in Cincinnati, Ohio. Matt Cahill built this concept based on over 35 years of experience in freight transportation and various packaging solutions. His son, Adam Cahill, established a SUPPLY POINTe location in Charlotte, North Carolina, in 2011. Recognizing the duplicatable nature of the business, Matt and Adam decided to transition to a franchising model, and SUPPLY POINTe Franchising, LLC began offering franchises in January 2017.
Financial Overview
Investment Range
$158,650 - $199,400
Franchise Fee (Low)
$44,550
Franchise Fee (High)
$49,500
Royalty %
4.25%
Equipment Costs (Low)
$750
Equipment Costs (High)
$8,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for SUPPLY POINTe Franchising, LLC show a significant net loss of $256,481 in 2023, a decrease from net income in previous years. Member's equity also substantially declined from $279,063 in 2022 to $14,190 in 2023. The auditor's report does not include a going concern qualification, but notes that management is required to evaluate whether there are conditions that raise substantial doubt about SUPPLY POINTe Franchising, LLC's ability to continue as a going concern.
Financing Details
SUPPLY POINTe does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
9
Franchised Units
6
Corporate Units
3
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
SUPPLY POINTe has no litigation history to report.
Bankruptcy History
SUPPLY POINTe has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, SUPPLY POINTe franchisees must have fully complied with all provisions of the Franchise Agreement and any other agreements with the franchisor, and not be in default. They need to secure the right to maintain their operating location or an approved substitute, and make any necessary capital expenditures to keep the business uniform with the current System standards. All monetary obligations to SUPPLY POINTe must be satisfied. Franchisees must provide timely written notice of their intent to renew between six and twelve months before the current term ends. They will also need to sign the then-current form of franchise agreement, which may have different terms and conditions, comply with current training requirements, and sign a general release of claims against the franchisor. A successor term fee of $10,000 is also required.
Training & Support Program
Franchisor Assistance
SUPPLY POINTe provides franchisees with comprehensive support and assistance. Before opening, the franchisor offers virtual training for up to 5 days for the franchisee and one manager, provides written specifications for approved suppliers, and outlines minimum specifications for equipment and supplies. The $79,900 Ready to Launch Program includes launch, advertising, and marketing initiatives, branded collateral materials, assistance with personnel recruitment, required software platform setup, and training. The technology setup, training, and recruitment are completed in 90 days, while marketing and ongoing business coaching extend for the first 12 months. During operation, SUPPLY POINTe authorizes products and services, makes ongoing virtual training available (which can be mandatory), provides modifications to the Operations Manual, offers advice on pricing, prescribes a standard accounting system, and gives general guidance by phone, email, and virtual visits. Franchisees must spend a minimum of $1,500 per month on local marketing starting in month 13, and contribute to a system-wide Marketing Fund. The franchisor approves all advertising materials, creates all websites and social media pages, and controls all social media initiatives. Franchisees are required to use specific computer hardware and software, including a designated CRM system like HubSpot, and must participate in mandatory online training courses and regular usage calls.
Initial Training Hours
96
Training Location
Online/virtual
Ongoing Support
SUPPLY POINTe provides franchisees with ongoing assistance after opening through various methods. The franchisor authorizes products and services for sale and offers advice and guidance on pricing. Franchisees receive modifications to the Operations Manual as they become available. Business guidance is provided via telephone, email, newsletters, and periodic virtual visits to the territory for consultation. Franchisees must contribute to a system-wide Marketing Fund, which increases over time, and a monthly Ongoing Education Fee for the first three years, which becomes optional if gross sales exceed $2 million. Mandatory ongoing virtual training programs or seminars are also provided from time to time. SUPPLY POINTe creates and controls all websites and social media pages for the franchised business, including collective/national campaigns. Franchisees are required to use a designated CRM system like HubSpot and must participate in regular calls with the franchisor's team to ensure usage and growth.
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
Supervisory
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
SUPPLY POINTe territories are defined by a minimum of 1,000 targeted businesses with five or more employees. Within these 1,000 businesses, 250 must be classified as manufacturing and distribution companies based on their NAICS codes (which can be a mix of primary and secondary classifications). The remaining 750 businesses are other targeted NAICS codes, also a mix of primary and secondary classifications.
Staffing Notes
SUPPLY POINTe franchisees are required to employ at least one Sales Admin/Coordinator, who must work a minimum of five hours per week. Additionally, franchisees are obligated to either directly supervise the franchised business themselves or appoint a minimum of one certified manager for each territory to provide personal supervision.