Window World Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$123,100 - $331,000
Franchise Fee
$30,000
Min Cash Required
$30,000
Total US Locations
211
Business Summary
Window World operates a business that specializes in marketing, selling, and installing exterior remodeling products for residential and light commercial customers. The core products Window World offers include windows, siding, and entry doors, with a requirement for franchisees to sell windows and entry doors. If a suitable siding product is available in their market, franchisees must also sell siding. Window World may also permit franchisees to offer residential roofing products and services if certain criteria are met.
Corporate History
Window World, Inc. was incorporated in North Carolina on April 7, 1997, initially under the name WINDOW WORLD OF NORTH CAROLINA, INC., before changing to its current name in 1998. The company began offering franchises of its exterior remodeling products business in 2011. Prior to this, from 1998 to 2010, Window World, Inc. offered licenses that were very similar to its current franchise program, treating those licensees as franchisees.
Financial Overview
Investment Range
$123,100 - $331,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$45,000
Minimum Cash Required
$30,000
Royalty %
12%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$69,500
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Window World, Inc. has received an unqualified audit opinion for its financial statements for the years ending December 31, 2024, 2023, and 2022, with no substantial doubt raised about its ability to continue as a going concern. However, the financial statements note ongoing litigation with franchisees. Management acknowledges that if these lawsuits are successful, they could have detrimental effects on Window World, Inc.'s franchisee relationships, and there is a reasonable possibility that a loss could be incurred, though no estimate is provided. This potential loss could materially affect the company's financial condition or results of operations. As a positive financial development, a note payable of $10,744,632, which resulted from a stock redemption and was tied to a former shareholder's lifetime payments, was terminated in August 2023 upon the shareholder's passing, removing it from liabilities and crediting retained earnings. Additionally, the company currently operates its corporate headquarters on a month-to-month lease basis, with an annual commitment of $430,596 as of January 2025. In February 2025, Window World, Inc. sold two stores that its affiliate had been temporarily operating due to a previous franchisee's bankruptcy, financing a portion of these sales.
Financing Details
Window World, Inc. does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
211
Franchised Units
209
Corporate Units
2
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
13
Litigation Summary
Window World, Inc. has a history of legal matters, with five lawsuits currently pending and eight cases concluded in the past. The pending matters, all filed between 2015 and 2020 by various Window World franchisees, include allegations against Window World, Inc., Window World International, LLC, and Tammy Whitworth. These lawsuits primarily claim failures to provide franchise disclosure documents, breach of contract, antitrust violations, fraudulent conveyance of intellectual property, fraud, negligent misrepresentation, and unfair trade practices. Some claims have been dismissed, but others, including trademark infringement in a separate 2019 case, are ongoing and scheduled for trial. These cases are either consolidated with or stayed pending the resolution of the initial 2015 lawsuits, and Window World, Inc. is actively defending itself. Historically, between 2011 and 2013, Window World, Inc. faced regulatory actions from several state authorities (California, Illinois, Washington, Maryland, Virginia, Oregon, Wisconsin, and Indiana) for selling unregistered licenses that were legally deemed franchises. In most instances, Window World, Inc. offered rescission to the affected franchisees (who declined) and agreed to comply with registration requirements moving forward. Some of these concluded matters involved fines or expense reimbursements, such as $15,000 in Illinois, $6,000 in Virginia, $9,000 in Oregon, $8,000 plus $1,000 in investigation costs in Indiana, and $1,800 in Washington. Additionally, an arbitration with Window World of Raleigh, Inc. was settled in 2016 through the acquisition of the franchisee's business by a Window World affiliate for $2,350,000 plus a $350,000 non-compete payout. Two lawsuits filed in 2010 and 2014 by a former shareholder, Marie Wyatt Whitworth, alleging fiduciary duty breaches, fraud, and fraudulent transfer of trademarks, were settled in 2016 for an additional $18,249,937.23 to resolve a stock redemption dispute. A 2015 employment law case (Oscar Castro v. Window World, Inc.) alleging joint employer liability was settled confidentially in 2016 for $33,376.11 plus attorney's fees, with no admission of liability by Window World, Inc. or its former affiliate.
Bankruptcy History
Window World, Inc. has no bankruptcy history to report for itself, its predecessors, affiliates, or key management personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement with Window World, Inc., franchisees must meet several conditions. They need to provide written notice of their intent to renew between nine and twelve months before their initial term expires and must be in full compliance with their Franchise Agreement and all other obligations, including timely payment of all amounts due. Franchisees are required to upgrade their business to Window World, Inc.'s then-current brand standards, with a maximum expenditure of $50,000 for this upgrade if they are in compliance with the agreement. They must also maintain healthy financial ratios, specifically a debt ratio less than 30% and a current ratio greater than or equal to 1.0, and their most recent annual financial statements should not indicate any substantial doubt about their ability to continue as a going concern. Franchisees must not have received more than two notices of default in the 24 months preceding the initial term's expiration. As part of renewal, they must sign the then-current version of Window World, Inc.'s franchise agreement and other ancillary agreements, which may have materially different terms regarding territory protection, fees, and performance standards. They need to ensure continued possession of their Headquarters location for at least the first 12 months of the renewal term or secure an approved alternative. All Operating Owners or Operations Managers must complete any current training requirements, and the franchisee must provide all requested documentation. Additionally, the business must have met certain minimum performance standards (Minimum MSI and 25th percentile for Minimum MSI in the two preceding years) and a minimum online consumer rating of 4.0 on a 5.0 scale. The franchisee must have fully implemented all required computer systems and comply with current branding requirements. There is no renewal fee, but franchisees will be required to travel to Window World, Inc.'s headquarters at their own expense to execute the renewal documents.
Training & Support Program
Franchisor Assistance
Window World, Inc. provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes providing site selection criteria, a start-up package of computer equipment (laptop, tablet, Microsoft Office subscription for one year, email addresses for one year), allowances for siding displays ($1,000) and exterior signage ($5,000), interior showroom signage, showroom displays, presentation samples, and initial print materials. The franchisor also covers warranty service expenses for the first 90 days after a new franchise purchase or until the business opens. Initial training for an Operating Owner or Operations Manager is provided at the corporate headquarters in North Wilkesboro, North Carolina, or another designated location, with Window World, Inc. covering lodging costs. After opening, Window World, Inc. offers ongoing support, including continued electronic access to its Manuals (which cover financial and inventory management, marketing, and operations). It provides required technology services for a monthly fee, such as its proprietary CRM system (WW360), email accounts, a domain name, and access to the Window World Owner's Portal; optional web design and management services are also available. Franchisees receive advice, information, and consultation, along with field support from Regional Managers who analyze the business and offer development suggestions. Window World, Inc. also facilitates new product development through approved manufacturers and may negotiate prices with approved vendors. While it may conduct national advertising and maintain a brand website, the franchisor retains sole discretion over its advertising efforts. Franchisees are also required to implement the franchisor's administrative, bookkeeping, accounting, and inventory control procedures, including using QuickBooks and submitting regular financial reports. Additionally, Window World, Inc. maintains a franchise advisory council to provide advice on various matters, including advertising.
Initial Training Hours
64
Training Location
North Wilkesboro, NC
Ongoing Support
After opening, Window World, Inc. provides its franchisees with continuous electronic access to its Manuals, which contain essential information on financial and inventory management, store resource management, marketing, and operational procedures. The franchisor offers technology services that include a proprietary CRM solution (WW360), email accounts, a domain name, and access to the Window World Owner's Portal. Optional web design and management services are also available. Window World, Inc. provides advice, information, and consultation services upon reasonable request and offers field support through Regional Managers who analyze the franchisee's business and provide suggestions for development. The franchisor periodically offers additional training opportunities and instructional meetings, with content and frequency determined at its discretion, though franchisees are generally responsible for their travel, lodging, and food expenses for these. Window World, Inc. also collaborates with approved manufacturers and vendors for new product development. It may negotiate prices with approved vendors and assist in customizing regional pricing. The franchisor maintains a brand website and may participate in national broadcast media or local/regional events for brand advertising. Franchisees are required to implement Window World, Inc.'s standard administrative, bookkeeping, and inventory control procedures, including using QuickBooks and a designated chart of accounts, and submitting semi-annual financial reports and annual reviewed financial statements. A franchise advisory council also exists to provide advice to the franchisor on various matters, including advertising.
Franchise Requirements
Ideal Candidate Profile
Window World, Inc. seeks individuals to operate its franchises who are committed to forming a limited liability company, corporation, or a similar business entity. The ideal candidate must either serve as an Operating Owner, holding at least a 10% ownership interest in the business, or appoint an Operations Manager. Both an Operating Owner and an Operations Manager are required to dedicate their full time and best efforts to the management, supervision, and daily operations of the franchised business, possessing full authority to direct day-to-day activities. An Operations Manager must pass a background check and have at least one year of experience in home improvement industry sales or management. All Operating Owners and Operations Managers are expected to complete initial and all reasonably required additional training to Window World, Inc.'s satisfaction. Window World, Inc. looks for franchisees in markets that can support the sale of windows, siding, and doors, considering factors such as population density, age of buildings, climate, age of population, home values, number of owner-occupied homes, and income levels.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Min Years Experience
1
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Window World, Inc. does not specify a minimum territory size. Typically, Window World, Inc. grants a territory encompassing one county or parish. However, the territory may be smaller than a full county or parish if deemed appropriate by Window World, Inc. based on factors such as population, geographic area, demographics, and market conditions. For instance, in densely populated metropolitan areas or very large geographic regions, a franchisee would likely receive a territory smaller than the entire county. If a franchisee is granted a territory with over one million owner-occupied homes, Window World, Inc. may require the franchisee to open one or more additional locations, known as Satellites, within that territory.
Staffing Notes
Window World, Inc. requires its franchisees to either designate an Operating Owner or appoint an Operations Manager to be responsible for the day-to-day operations and on-site supervision of the franchised business. This individual must dedicate full time and best efforts to management and supervision, having full authority over daily business operations. Beyond this leadership role, Window World, Inc. expects the franchisee to employ or contract with a sufficient number of personnel to ensure efficient service to customers. No specific staff roles or minimum counts for general employees or contractors are provided, but the franchisor emphasizes the importance of adequate staffing for efficient customer service.