Surface Experts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$140,340 - $227,475
Franchise Fee
$75,000
Total US Locations
81
Business Summary
Surface Experts is a mobile service business that provides on-site repair of interior surfaces. This includes materials like vinyl, wood, glass, linoleum, tile, laminate, and stainless steel. Surface Experts serves both residential and commercial customers.
Corporate History
Surface Experts Franchising LLC was formed on July 20, 2018, as a Washington limited liability company. Surface Experts began offering franchises in 2018. The company has not operated a business of the type franchisees will run. From October 2018 to December 2019, Surface Experts also offered Area Representative rights to act as sales and support agents.
Financial Overview
Investment Range
$140,340 - $227,475
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$110,000
Royalty %
8%
Equipment Costs (Low)
$10,600
Equipment Costs (High)
$39,650
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD includes a special risk note indicating that Surface Experts' financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees.
Financing Details
Surface Experts may offer to finance a portion of the initial franchise fee, depending on the applicant's creditworthiness and fund availability. The amount financed could range from 50% to 100% of the fee, with interest rates between 6% and 12%, repayable over 36 to 96 months. For example, a $37,500 loan financed at 12% APR over 36 months would have approximate monthly payments of $1,245.54. Franchisees would need to sign a Promissory Note and provide a personal guarantee. Surface Experts does not charge a prepayment penalty. In case of default, the entire amount becomes due, and Surface Experts can also claim attorney fees and court costs. Surface Experts does not guarantee any other notes, leases, or obligations of the franchisee.
Performance Metrics
Total US Locations
81
Franchised Units
81
Corporate Units
0
Avg Square Footage
150
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Surface Experts has no litigation history to report. Item 3 of the Franchise Disclosure Document explicitly states that no litigation is required to be disclosed.
Bankruptcy History
Surface Experts has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Surface Experts franchisees must provide notice between 90 and 180 days before the current term expires. They must be in full compliance with all contractual obligations to Surface Experts and any third parties. Franchisees are required to update their Surface Experts Business to conform to the brand's then-current standards for new franchisees and sign a new franchise agreement along with any related documents, including a personal guarantee. A renewal fee of $5,000 is also required, and franchisees must sign a general release of claims.
Training & Support Program
Franchisor Assistance
Surface Experts provides a range of support to its franchisees. Before opening, the company offers suggested guidelines for hiring employees, operational instructions in its Franchise Operations Manual, and sells initial packages of equipment, tools, supplies, and staff uniforms. It also provides lists of approved suppliers for other items. Franchisees receive initial training for themselves (Principal Executive) and their Lead Technician. Upon request, Surface Experts reviews pre-opening business plans and market introduction plans, and provides an individual webpage. After opening, Surface Experts offers advice by phone or electronically to help improve the business and resolve operating problems. It provides recommended prices and procedures for administration, bookkeeping, accounting, and inventory control. Surface Experts manages a Brand Fund (if established) and maintains the brand website. A centralized Support Center handles customer inquiries, schedules service calls, dispatches technicians, and assists with customer and technician support. The Support Center can also help with accounts receivable and basic bookkeeping upon request.
Initial Training Hours
36
Training Location
Spokane, Washington
Ongoing Support
After opening, Surface Experts offers ongoing advice by telephone or electronic communication to help franchisees improve and develop their business and resolve operating problems. For in-person support visits requested by the franchisee, Surface Experts may charge a fee plus expenses. The company also operates a centralized Support Center that handles incoming customer inquiries, schedules and dispatches service calls, and assists both customers and technicians throughout the service process. Upon request, the Support Center can also assist with accounts receivable and basic bookkeeping. While Surface Experts reserves the right to require additional training programs or refresher courses in the future, none are currently required.
Franchise Requirements
Ideal Candidate Profile
Surface Experts seeks a Principal Executive who will be the primary decision-maker for the business and own at least 50% of its equity. This is not a semi-absentee business model; the Principal Executive must dedicate their sole and full-time efforts to the Surface Experts Business for a minimum of three full years. They must complete the initial training program and any future post-opening training. Additionally, Surface Experts franchisees are required to hire one full-time Lead Technician and one full-time Business Development person when starting their operation.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
2
Territory Size Requirements
Surface Experts territories are defined by specific zip codes, county or city lines, or other mutually agreed-upon limits. A standard territory with a population of up to 325,000 people has a $75,000 franchise fee, with larger territories incurring an additional $0.20 per person. Franchise territories typically range in population from approximately 278,542 to 1,311,908.
Staffing Notes
Surface Experts franchisees must hire a minimum of two full-time employees at the start of their business: one Lead Technician and one Business Development person. The Business Development person, who cannot be the franchisee (Principal Executive) themselves, must be maintained full-time to promote the franchised business according to Surface Experts' guidelines. All personnel, including the Lead Technician and Business Development person, must complete Surface Experts' required training programs before the business opens.