The Frontdoor Collective Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$124,775 - $454,520
Franchise Fee
$50,000
Total US Locations
23
Business Summary
The FRONTdoor Collective offers a franchise business specializing in "last mile" shipping and delivery services for consumers on behalf of third parties. These services involve transporting goods from a central hub to their final destination, utilizing proprietary technology. Franchisees can manage their business from a home-based administrative office or an optional commercial facility for operations like warehousing and sorting. All delivery services are provided directly to customer homes using branded service vehicles.
Corporate History
FRONTDoor Franchising LLC was established as a Delaware limited liability company on June 29, 2021, and began offering franchises on July 20, 2021. The company does not have any predecessors. Its parent company, The FRONTdoor Collective, Inc., is a Delaware corporation formed on April 19, 2021. An affiliate, FRONTDoor IP LLC, also a Delaware limited liability company, was established on June 29, 2021, and owns the Licensed Marks used by the system.
Financial Overview
Investment Range
$124,775 - $454,520
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$50,000
Royalty %
8%
Equipment Costs (Low)
$6,900
Equipment Costs (High)
$177,400
Working Capital
$96,212
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FRONTdoor Collective's financial statements for the year ending December 31, 2024, indicate a net income of $517,610, an improvement from a net loss of $(154,179) in 2023. However, the company's members' equity remains in a deficit of $(1,690,402) as of December 31, 2024. Additionally, a special risk highlighted in the FDD states that the franchisor's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. There is also a significant amount due to related parties, totaling $1,413,869 as of December 31, 2024, up from $1,379,798 in 2023, which is an interest-bearing note payable to its Parent to cover operating expenses and support expansion.
Financing Details
The FRONTdoor Collective does not offer direct or indirect financing to its franchisees. However, if a franchisee requests an expedited disbursement of Gross Sales received by FRONTDoor Franchising LLC from their business, they will incur an Expedited Payment Term Option Fee. This fee is 2.5% of Gross Sales if the disbursement is requested within seven days, or 2.0% if requested within 14 days of completing the Approved Services and Products.
Performance Metrics
Total US Locations
23
Franchised Units
22
Corporate Units
1
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The FRONTdoor Collective has no litigation to report in Item 3 of its Franchise Disclosure Document. This means that FRONTdoor Franchising LLC has not been involved in any material legal proceedings, including litigation, during the period covered by this disclosure.
Bankruptcy History
The FRONTdoor Collective has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. This indicates that FRONTDoor Franchising LLC, its predecessors, or any of the key management personnel have not filed for bankruptcy, been adjudged bankrupt, or reorganized due to insolvency within the last 10 fiscal years.
Agreement Terms
Initial Term
4 years
Renewal Term
4 years
Renewal Conditions
To renew their franchise, FRONTdoor Collective franchisees must meet several conditions. They need to provide FRONTDoor Franchising LLC with a written notice of their intent to renew at least 180 days before the initial term expires. At the time of notice and continuously thereafter, the franchisee and their owners must be in full compliance with the current franchise agreement and all related agreements, without any defaults. Franchisees must also demonstrate their ability to continue operating the business within their territory, maintain their administrative office and service vehicles to current standards, and possess the necessary performance capabilities. A renewal fee must be paid, and the franchisee and their owners (and spouses) must sign FRONTDoor Franchising LLC's then-current renewal franchise agreement and related guaranty agreements, which may have materially different terms. Additionally, they must complete any required training and sign a general release of claims against FRONTDoor Franchising LLC, or an estoppel letter if a general release is prohibited by local law.
Training & Support Program
Franchisor Assistance
FRONTDoor Collective provides several forms of assistance to its franchisees. Before opening, FRONTDoor Collective grants franchisees the right to operate, approves their designated operating territory (which can include a home-based administrative office), provides access to its confidential Operations Manual, and gives a list of approved suppliers. FRONTDoor Collective also assists with website and digital media setup, strictly controlling their use, and offers an initial training program. This training, typically lasting around 10 days, is for the franchisee or their Managing Owner and one designated manager, conducted at a facility in Dallas, Texas, or virtually. After opening, FRONTDoor Collective communicates operating standards, updates supplier lists, may coordinate an annual conference, and offers supplemental training if requested by the franchisee or deemed necessary due to performance issues. FRONTDoor Collective maintains direct access to the franchisee's Business Management System for monitoring and support.
Initial Training Hours
64
Training Location
Dallas, Texas, or virtual
Ongoing Support
After opening, FRONTdoor Collective franchisees receive ongoing support through various means. FRONTdoor Collective establishes and communicates operating standards, procedures, and System requirements, including updates to Approved Services and Products, System Supplies, designated suppliers, and marketing standards. It also provides the names and addresses of approved vendors and suppliers. FRONTdoor Collective may organize an annual system conference for networking and education, requiring franchisee attendance. Supplemental on-site training may be provided if a franchisee is not meeting performance standards, for which a fee is charged. Training is also available for replacement Operating Managers. Franchisees must maintain uniforms and monitor System Supplies and Approved Services according to standards.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
The FRONTdoor Collective's operating territories are non-exclusive and vary in scope and size, determined by FRONTDoor Franchising LLC based on factors like population density, demographics, and geographical boundaries. While there is no minimum size, territories generally encompass a geographic area reachable within a three-hour driving distance, on average. The specific boundaries may be identified by zip codes, boundary streets, highways, or county lines, and are set at the time the Franchise Agreement is signed based on raw data, without regard to demographics or other qualifying factors. FRONTDoor Franchising LLC also explicitly states that its determination of driving distances, priority, and location for the operating territory is based on raw data and without regard to demographics or other qualifying factors.