TeamLogic IT Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$109,490 - $144,742
Franchise Fee
$40,000
Min Cash Required
$60,540
Total US Locations
310
Business Summary
TeamLogic IT operates an information technology business that provides outsourced IT managed services. TeamLogic IT businesses target small and medium-sized businesses, offering services such as remote monitoring, troubleshooting, system installation, hardware and software repair, data backup and recovery, IT security, cloud services, and email solutions. These services are delivered by qualified technicians.
Corporate History
TeamLogic, Inc. was incorporated in California on September 1, 2004. It began offering franchises for computer consultation, maintenance, and proactive IT managed services in January 2005. TeamLogic, Inc. is a wholly owned subsidiary of Franchise Services, Inc., which was established in 1996 and owns and manages a variety of international franchise brands.
Financial Overview
Investment Range
$109,490 - $144,742
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$49,500
Minimum Cash Required
$60,540
Royalty %
7%
Marketing %
1.2%
Equipment Costs (Low)
$7,650
Equipment Costs (High)
$12,500
Working Capital
$69,316
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
TeamLogic, Inc. maintains a significant portion of its cash in uninsured bank accounts, with balances of $1,406,000, $750,000, and $1,771,000 at the end of 2024, 2023, and 2022, respectively. The company experiences concentration risk from its vendors, with 44% of its products purchased from two vendors in 2024, 27% from one vendor in 2023, and 40% from two vendors in 2022. TeamLogic, Inc. also has several related party transactions with its parent company, Franchise Services, Inc., including outstanding balances due to affiliates, and charges for management fees, advertising agency services, and printing expenses.
Financing Details
TeamLogic, Inc. does not offer any direct or indirect financing to its franchisees. TeamLogic, Inc. also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
310
Franchised Units
311
Corporate Units
0
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
TeamLogic IT had one litigation case within the last three years. On January 11, 2024, TeamLogic IT and the California Commissioner of Financial Protection and Innovation entered into a Consent Order. This order addressed violations between December 2017 and February 2023, where TeamLogic IT sold four franchises through Franchise Brokers who did not have the required Salesperson disclosures filed with the Department. As a result, TeamLogic IT violated California Corporations Code Section 31210 four times. TeamLogic IT agreed to cease these violations, comply with the Franchise Investment Law, and paid an administrative penalty of $8,000 on January 16, 2024. Other than this action, no other litigation is required to be disclosed.
Bankruptcy History
TeamLogic IT has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, TeamLogic IT franchisees must provide 6 months advance written notice of their intent to renew. They must not be in default of their current agreement and must be current on all monetary obligations to TeamLogic IT, its affiliates, or approved vendors. Franchisees will need to sign TeamLogic IT's then-current Franchise Agreement, which may have terms and conditions different from their original contract. They must also meet any current qualifications and training requirements, pay a $2,000 renewal fee, and update their business location, vehicle signage, and any graphics to meet current brand standards. Finally, franchisees must sign a general release of claims against TeamLogic IT and its associates.
Training & Support Program
Franchisor Assistance
Before opening, TeamLogic IT provides franchisees with a Brand Standards and Operations Manual, approves their territory and office location, and conducts an initial training program. They also provide specifications and guidance for signage, vehicle graphics, required hardware, software, and software licenses. Franchisees also receive training and access to the Professional Services Automation software and the Franchisee Intranet Site. Once open, TeamLogic IT offers ongoing consulting and assistance, including sales, technical, marketing, and operations support. This includes research and evaluation of technical products, services, and vendors, a toll-free support line, marketing materials and assistance, seminars and webinars, and advice on industry developments. TeamLogic IT also administers the advertising fund, provides an initial supply of sales and marketing tools, and offers a 12-Month Initial Marketing Program that includes direct mail, telemarketing, search engine marketing, and email marketing. TeamLogic IT provides up to $9,500 in marketing services over the first 12 months. Additionally, TeamLogic IT hosts and maintains the master website and provides a local website for each business.
Initial Training Hours
131
Training Location
Corporate training facility in Mission Viejo, CA and online/webinars/phone consultation
Ongoing Support
After opening, TeamLogic IT franchisees receive continuous support through various resources. This includes ongoing consulting and assistance from TeamLogic IT representatives for sales, technical issues, marketing, and operations. TeamLogic IT also conducts research and evaluation of technical products, services, and vendors, and offers a toll-free support line for telephone consulting. Franchisees have access to marketing materials, assistance, seminars, and webinars, along with advice and information on new developments in the computer consultation, repair, and managed services industry. TeamLogic IT provides advertising materials, access to the Franchisee Intranet Site, Professional Services Automation software, End-user Help Desk, Network Operations Center (NOC), and IT Consulting/Strategic Advice. Additionally, TeamLogic IT administers a network-wide advertising fund and maintains the master website, which includes a dedicated local website for each franchisee.
Franchise Requirements
Ideal Candidate Profile
TeamLogic IT is seeking financially qualified individuals with strong business acumen, a desirable personality to follow the brand's system, and a strong desire for success. Franchisees must be hands-on operators, directly supervising and participating in the day-to-day operations of their TeamLogic IT business. Franchisees are required to ensure they have at least one onsite qualified technician, certified on the Remote Monitoring and Management (RMM) tools, within 90 days of opening and throughout the term of the agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
hands-on
Territory Type
protected
Staff Count
1
Territory Size Requirements
TeamLogic IT territories are defined as a specific geographical area based on the number of businesses, typically 1,500 to 2,000, that are potential clients for TeamLogic IT services. TeamLogic IT uses a business list provider to determine these business counts.
Staffing Notes
TeamLogic IT requires franchisees to have a minimum of one onsite qualified technician who is certified on the Remote Monitoring and Management (RMM) tools. This technician must be certified within 90 days of opening the business and remain certified throughout the franchise agreement term. TeamLogic IT's training programs cover employee management, including recruiting, hiring, managing employees, background checks, legal/HR compliance, and creating an employee policy manual. While franchisees may hire a manager, that manager must sign a confidentiality agreement and cannot work for a competing business. The business equipment includes three laptops, three monitors, and three smartphones for the owner and technicians, implying a need to staff beyond a single technician as the business grows. Each technician hired must have a smartphone.