How is the Initial Franchise Fee determined for an Advanced Mobile Iv And Amiv franchise?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
ulation of your approved Franchise Territory, as follows:
| Tier | Population Size | Initial Franchise Fee | |---|---|---| | Tier 1 | Up to 150,000 persons | $35,000 | | Tier 2 | 150,001 to 300,000 persons | $55,000 | | Tier 3 | 300,001 to 450,000 persons | $70,000 | | Tier 4 | 450,000 to 600,000 persons | $85,000 | If you desire a Franchise Territory larger than 600,000 persons of population, or to later add additional territory to your Franchise Territory, you must pay an additional Initial Franchise Fee of $0.14 per person for every person of population above 600,000 or above the population of your original Franchise Territory, subject to territorial availability and approval. All territory and areas comprising the Franchise Territory must be contiguous and must be approved by us. The population in your designated Franchise Territory is determined based upon recent United States census data and estimates and chamber of commerce information, but we will make the final determination.
Simultaneous with the execution of the Franchise Agreement, you will pay to us one-half of the Initial Franchise Fee. The remaining half is due 30 days after signing the Franchise Agreement. The Initial Franchise Fee is paid in consideration for our sales expenses, administrative overhead, return on investment, and start-up costs related to the execution of the Franchise Agreement, the opening of the Franchise, and for our lost or deferred opportunity to sell franchises in the Franchise Territory to others.
You must also purchase from our affiliate Advanced Mobile Distribution, LLC 2 to 4 initial nurse kits currently at the average purchase price of $2,550 each. The nurse kits contain an initial inventory of needles, water and saline bags, and most common IVs.
Our initial training program includes optional training at our headquarters in St. George, Utah. If you participate in such on-site training, you are responsible for and must pay all transportation, lodging, meals, and other expenses that you or your manager incur related to attending training at our headquarters. You must arrange your travel through third party vendors not affiliated with us.
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, the initial franchise fee is determined by a tiered system based on the population size of the approved franchise territory. The initial franchise fee is non-refundable.
The four tiers are structured as follows: Tier 1, for territories with up to 150,000 people, has an initial franchise fee of $35,000. Tier 2, covering populations from 150,001 to 300,000, requires a $55,000 fee. Tier 3, for territories with 300,001 to 450,000 residents, has a $70,000 fee. Finally, Tier 4, for areas with 450,000 to 600,000 people, carries an $85,000 initial franchise fee.
If a franchisee desires a territory larger than 600,000 in population, they must pay an additional initial franchise fee of $0.14 per person for every person above 600,000. The franchisor determines the population in the designated franchise territory based on recent United States census data and estimates and chamber of commerce information. Advanced Mobile Iv And Amiv may selectively offer franchises at a reduced rate to prospective franchisees who possess the knowledge and experience to conduct business with minimal assistance from them or who are purchasing multiple franchises.
In 2022, franchisees paid initial franchise fees ranging from $10,000 to $20,000. Advanced Mobile Iv And Amiv intends to raise the initial franchise fee after certain growth levels have been attained, but the increased franchise fee and timing have not been determined as of the date of the 2023 Franchise Disclosure Document. Franchisees must pay one-half of the initial franchise fee simultaneous with the execution of the Franchise Agreement, with the remaining half due 30 days after signing.