Are the territories protected against competition from other Glass Guru franchisees?
We give our franchisees the best of both worlds with an Exclusive Protected Territory that is theirs as well as the ability to provide services outside of it on a Non-Exclusive basis. The only real restriction is our owners cannot offer services in another The Glass Guru protected territory.
Are there any minimum marketing requirements?
We collect a 1-3% fee that goes towards national branding and advertising that benefits everyone in the system equally. In addition, our franchisees are required to re-invest a minimal amount into ongoing marketing and advertising each month based on the size of their territory (see FDD for details). There is also a requirement that a portion of that amount be allocated for Pay-Per-Click internet advertising.
Can I purchase additional territories and can I get first right of refusal on the neighboring areas?
At any point in your Glass Guru business, you can apply to purchase additional available territory. If you have additional areas in mind for the future, talk to your franchise sales representative about an area development agreement for the areas of interest.
Do I need to have industry or trade experience?
Our franchisees come from all walks of life and work experience with only a handful having any experience in the glass or window industry. No previous trade experience is required for our franchise ownership but previous business or marketing experience is helpful. The most important qualities to bring to the table are being coachable and your ability to follow and stick to our proven systems.
Do I need to incorporate prior to purchasing or launching the franchise?
The type of business entity you choose to operate as is your choice but we do recommend considering the benefits of incorporating to limit your personal liability in the business and for other benefits they can afford you. If you launch the business as a sole proprietor or partnership, the franchise agreement can be amended if you incorporate at a later date.
Do I need to lease commercial space? If so, how much?
The business does require a commercial location but you do have the ability to start from home and begin generating revenue as you search for the right location. Our franchise agreement allows for up to 6 months to move out of the home and into commercial space, but most choose to do it much sooner, if not from the onset. Your initial space does not need to be large or fancy but it should be relatively easy to access and have room for product and vehicle storage, staff work areas and potentially a small showroom space to display products. Most start with just 500-1000 sq feet but many upgrade to a larger space after a few years of operations.
Has anyone failed with the franchise? What if I discover that it just isn’t for me?
Although a relatively small group, we have had some franchisees close their franchise for a variety of reasons including failure to open, failure to grow, insolvency, partnership breakdown, illness or it just wasn’t the right fit. Except in a few rare instances of termination by the franchisor, owners can typically sell their franchise rights to another qualified party. We charge a $5K transfer fee which includes a new initial franchise training for the new owner.
How are territories determined or delineated?
Our franchise territory boundaries are decided upon mutually by our owners and our management and support teams. Territories are typically delineated by zip or postal codes grouped together into a manageable area that is large enough to facilitate steady growth, yet not too large that you lose efficiency. The initial franchise fee is based on the total population of the area and ranges from $19,450 for territories with a population of 200K or less, and up to $45,000 for territories with 750k population or greater. The average franchise fee is around $31,000 with a population base of 400K and a service radius about 8 miles.
How long does it usually take to get profitable and start paying myself from the business?
With low overhead and operational costs and the ability to start generating revenue immediately or shortly after the initial franchise training, its typical for our owners to turn cash-flow positive in the first 30-90 days in the business, although some have accomplished this even faster. Many of our new owners are getting their first calls and lining up appointments in their first week back from training.
How much working capital do I need after I pay the initial franchise fee?
Depending on the size of your territory, we generally recommend having roughly $30K-$50K available to cover additional start-up expenses such as tooling, vehicles, office equipment, marketing, etc. Its most important that you have enough capital set aside to get through that initial startup period and into profitability where the franchise business can sustain its own growth.
What about office equipment, computers and software?
While we run mostly paperless operations in the cloud, you will need to have a quality printer to print estimates, invoices and other business documents as needed and a computer with high speed internet to access our cloud based franchise management software and to run Quickbooks for your accounting. A current version of Quickbooks is also required.
What about ongoing training?
In addition to taking a proactive role in regularly communicating with our franchise owners and office managers, our expert trainers conduct periodic live webinars on a variety of topics, sharing best practices, tricks of the trade, marketing and business strategies and more. In addition, we hold an annual franchise convention every 24 mos, where the entire organization gets together in Vegas for 3 days of continued ed, sharing and fun.
What are the ongoing fees? Are there any minimum monthly fees?
The ongoing fees are a 5% royalty on your total gross sales revenue, a 3% advertising fee that goes towards marketing and branding that all franchisees equally benefit from and a 1% technology fee that covers our integrated tech stack of software we use to manage and operate the business. There are no monthly minimums for running a franchise operation, meaning if you don’t make money, neither do we.
What kind of advertising works best to attract customers?
In 13 years of operating our corporate store and 10 years of assisting others, we absolutely know what works and what doesn’t for attracting customers in the most cost-effective manner. There are many options but we have narrowed them down to the top 5 areas for our franchisees to concentrate their efforts to get the best results. These include networking, internet advertising, signs, tradeshows and other events.. We train extensively on how to maximize each of these areas as well as others such as press releases, social media and TV/Radio and we have an extensive collection of digital ads and templates for our owners to use so they don’t have to recreate the wheel.
What type of activities would I be doing as the owner?
There are 3 primary staff roles for our business model – estimators, field techs and office personel. Although many of our owners will initially handle the estimating and office management themselves when the business is launched, we strongly encourage all of our owners to find a qualified glazier (glass & window installer) to handle their field work from the onset. As the business grows and they add an office manager to relieve themselves of those duties, it allows our owners to focus the majority of their time doing sales and estimates as well as additional marketing activities to keep their growth going. One of our owners doing 5-7 estimates per day can typically line up enough work to keep two full time glaziers busy in the field doing the work.
What type of initial training is provided for new owners and staff?
Our initial franchise training program consists of roughly a month of remote learning followed by 5 days of real life review for our new owners and up to 3 additional partners or staff at one of our 4 regional Certitifed Training Locations. The training covers all aspects of the business including restoration and replacement services, measuring and pricing, customer service, marketing, business administration, vendors and more.
What type of tools and vehicles will I need?
There are a number of general tools as well trade specific tools that you will eventually need for the operation of the franchise, but these can be purchased on an as-needed basis as the business grows. We supply an initial Glass Guru tool kit on the final day of the initial franchise training that includes a number of items and some consumables but not everything that you will ultimately need. Our Franchise Disclosure Documents include a full list of the tools and equipment required for the operation of the business. Initially, you will need a vehicle suitable for estimates and another for field work. For estimating, it can be a flex vehicle such as a Honda Element, Chevy HHR, Scion xB or something similar that gets good gas mileage and can be professionally wrapped to advertise and represent the business. For the service vehicle, you will also need a truck or van with storage racks capable of moving large glass pieces, windows or doors.
