The Doan Group Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$14,050 - $68,000
Franchise Fee
$10,000
Total US Locations
26
Business Summary
The Doan Group franchisees operate a business that performs personal and commercial vehicle, automobile, truck, motorcycle, and heavy equipment appraisals related to property and casualty damage. This business involves evaluating damage for clients such as insurance companies, independent adjustment companies, and third-party administrators.
Corporate History
The Doan Group, operating under Woodland Capital Franchising, Inc., was incorporated in Georgia on February 5, 2020. It began offering Doan Group franchises on March 17, 2020. Initially, an affiliate, Woodland Capital Holdings, Inc. (formed February 5, 2020), held exclusive licensing rights from The Doan Group, Inc. (DG Inc.) and then granted Woodland Capital Franchising, Inc. the right to sublicense this intellectual property. In July 2020, Woodland Capital Holdings acquired DG Inc.'s assets, and existing DG Inc. operators were offered the chance to become Doan Group franchisees. The Doan Group is also affiliated with SCA Franchising Corporation, which has been offering SCA Appraisal Services franchises since March 2007.
Financial Overview
Investment Range
$14,050 - $68,000
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$50,000
Royalty %
22%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$4,500
Working Capital
$1,050
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's "Special Risks to Consider About This Franchise" section states that The Doan Group's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. However, the independent auditors issued an unqualified opinion on the financial statements, indicating they present fairly in all material respects, and did not include a going concern qualification.
Financing Details
The Doan Group may finance a franchisee's Initial Franchise Fee if the franchisee meets specific financial and credit requirements. If financing is granted, franchisees will sign a Secured Promissory Note, payable over 48 months. The interest rate will be the lower of the highest rate allowed by law or the prime rate plus 3% per annum. Repayments will be deducted weekly from advances made to the franchisee and will be personally guaranteed by all owners. The Doan Group has the right to secure these obligations with weekly advances and file a UCC-1 Financing Statement. The debt can be prepaid without penalty, but if the franchise agreement is terminated, the full amount becomes due immediately.
Performance Metrics
Total US Locations
26
Franchised Units
26
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Doan Group has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
The Doan Group has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, The Doan Group franchisees must provide timely written notice (3 to 9 months before expiration), be in good standing, and have fulfilled all monetary obligations to The Doan Group and its affiliates. They must also have been in substantial compliance with the franchise agreement throughout its term and at the time of renewal. Franchisees are required to sign a general release of claims against The Doan Group, pay a renewal fee, sign The Doan Group's then-current franchise agreement (which may have different terms), and meet all current training requirements. Additionally, the Designated Appraiser must obtain any new certifications, licensing, or authorizations. Franchisees must also make any required improvements to modernize their business, including upgrades to software, equipment, and uniforms, and obtain lease extensions if applicable.
Training & Support Program
Franchisor Assistance
The Doan Group provides several types of assistance to its franchisees. Before opening, The Doan Group grants a Designated Territory, provides mandatory specifications for equipment, software, and supplies, and offers access to its electronic Operations Manual. It also furnishes an initial training program for the Operating Principal and one Designated Appraiser. During operation, The Doan Group refers National Accounts located within the franchisee's territory and offers general advisory and field support as needed. It may conduct periodic inspections and evaluations of services and personnel. It provides training for any new services required in the future. The Doan Group also makes an insurance program available to franchisees, which it reserves the right to make mandatory, and manages the Brand Fund (if implemented) for advertising and marketing the System.
Initial Training Hours
14
Training Location
Franchisor's designated training facility or headquarters, or via teleconference or webinar.
Ongoing Support
The Doan Group provides ongoing support to its franchisees by referring National Accounts in their designated territories and offering general advisory assistance and field support as needed. The Doan Group conducts periodic inspections of the franchised business and its personnel to ensure quality. It also provides training for any new services required in the future. Franchisees may be required to attend regional or national conferences or conventions, which may incur a fee. Additionally, The Doan Group makes an insurance program available to franchisees, which it reserves the right to make mandatory.
Franchise Requirements
Ideal Candidate Profile
The Doan Group primarily seeks experienced property and casualty appraisers as franchisees. Ideal candidates must designate an Operating Principal who owns at least 25% of the franchise and has the authority to make all business decisions. This Operating Principal must be approved by The Doan Group and successfully complete its initial training program.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
The Doan Group territories are defined by population, zip codes, counties, or other municipal or natural boundaries, and the specific definition will vary for each territory granted.
Staffing Notes
Each The Doan Group franchisee must designate an Operating Principal who owns at least 25% of the franchise and has authority for all business decisions. Additionally, at least one full-time qualified appraiser, known as the Designated Appraiser, is required to manage daily operations and conduct all appraisal services. The Operating Principal may also serve as the Designated Appraiser, or another employee can be designated. Both the Operating Principal and Designated Appraiser must complete The Doan Group's initial training program. Franchisees are responsible for hiring, training, compensating, and overseeing all additional personnel as they deem appropriate, and must ensure all personnel with access to confidential information sign a confidentiality agreement. The Operating Principal is also responsible for all accounting records and financial reporting.