Risk Score
Pending analysis
Investment Range
$179,100 - $612,200
Franchise Fee
$32,950
Total US Locations
1
Business Summary
Terrace Up operates a business specializing in the installation, repair, and maintenance of rooftop landscapes and amenities. Terrace Up also provides related services and products, primarily serving commercial property owners.
Corporate History
Terrace Up Franchising Inc. was established as a New Jersey corporation on February 24, 2023, with its principal business address in Parsippany, New Jersey. The company began offering Terrace Up franchises on November 7, 2023. Prior to franchising, the co-founder and President, Nicholas Codd, had founded and owned Pando Landscapes, LLC in Cedar Knolls, New Jersey, since May 2017. On January 1, 2023, Pando Landscapes rebranded to operate as a Terrace Up Business, focusing exclusively on rooftop landscaping services and related products, and this entity serves as the company's owned outlet.
Financial Overview
Investment Range
$179,100 - $612,200
Franchise Fee (Low)
$32,950
Franchise Fee (High)
$329,500
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$26,700
Equipment Costs (High)
$54,100
Working Capital
$116,400
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Terrace Up Franchising Inc.'s financial statements for 2023 and 2024 show limited cash and cash equivalents ($2,528 as of December 31, 2024) and negative retained earnings (losses), with ($15,622) in retained earnings as of December 31, 2024. These figures, as explicitly noted in the Special Risks section of the FDD, raise questions about the company's financial ability to provide services and support to franchisees. The auditor's report also indicates that management is required to evaluate if there is substantial doubt about the company's ability to continue as a going concern.
Financing Details
Terrace Up Franchising Inc. does not offer any direct or indirect financing to franchisees. The company also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Terrace Up Franchising Inc. has no litigation history to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Terrace Up Franchising Inc. has no bankruptcy history to report. The FDD states that no bankruptcy is required to be disclosed in Item 4.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their franchise, Terrace Up franchisees must be in full compliance with their current Franchise Agreement and all related agreements, including those signed by owners and their spouses. They must also provide 180 days' written notice of their intent to renew before the current term expires. Franchisees will be required to sign Terrace Up Franchising Inc.'s then-current form of Franchise Agreement for the renewal term, which may have materially different terms, along with other related agreements. A general release must also be signed in favor of Terrace Up Franchising Inc., and a renewal fee must be paid. Owners and their spouses must personally guarantee the terms of the new renewal Franchise Agreement.
Training & Support Program
Franchisor Assistance
Terrace Up Franchising Inc. provides several types of assistance to its franchisees. Before opening, the company grants the franchise rights and approves the franchisee's operating territory, including the administrative office location (which can be home-based if permitted). Franchisees receive access to confidential operations manuals and lists of approved suppliers, distributors, signage, equipment, furniture, and fixtures. Terrace Up Franchising Inc. also lists the franchisee's business on its website and provides initial training for the managing owner and one manager at no additional charge (travel expenses are the franchisee's responsibility). After opening, Terrace Up Franchising Inc. communicates operating standards, marketing standards, and updates approved vendor lists. The company may coordinate annual system conferences, and offers supplemental training if requested or required (for a fee). Training for replacement managers is also available for a fee. Terrace Up Franchising Inc. also administers marketing funds and defines hiring and training standards for employees, although franchisees are responsible for the actual hiring and training.
Initial Training Hours
40
Training Location
Designated training location in New Jersey, supplier location, or virtually
Ongoing Support
Terrace Up Franchising Inc. provides ongoing support to its franchisees by communicating and updating operating standards, marketing standards, and approved vendor lists. The company may also coordinate an annual system conference for franchisees. Supplemental training is available or may be required if performance standards are not met, incurring a fee of $500 per trainer per day plus travel expenses. Training for replacement operating managers is also available for a fee. Terrace Up Franchising Inc. manages system-wide marketing funds, and while it does not directly assist with hiring employees, it requires compliance with system standards for uniforms and service quality. Franchisees also receive suggested pricing levels from the company.
Franchise Requirements
Ideal Candidate Profile
Terrace Up seeks franchisees or their Managing Owners who are of good moral character, possess sufficient business experience and aptitude, and have the financial resources necessary to operate a Terrace Up Business. The Managing Owner must dedicate full-time efforts to the daily management and supervision of the franchised business, complete initial training, and obtain all necessary licenses and permits. Managers hired by the franchisee must also meet specific criteria and complete training.
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
Limited
Territory Size Requirements
Terrace Up Franchising Inc. defines a territory as a geographic area containing approximately 20,000 Qualified Buildings. A Qualified Building is a property zoned as a hotel, business park, commercial building, office building, apartment building, condominium building, or a similar type of building.
Staffing Notes
Terrace Up Franchising Inc. requires the franchisee's managing owner to be personally responsible for the daily management and supervision of the business, working full-time. Alternatively, the franchisee can hire an approved Operating Manager who must meet minimum standards, complete initial training, sign confidentiality and non-competition agreements, and agree to on-site management. Franchisees are solely responsible for hiring and training their employees, but must ensure all staff wear approved branded uniforms and follow system standards for services and products. Employees who access confidential information must sign a confidentiality agreement.