At Express Modular Franchising we’re searching for motivated, knowledgeable entrepreneurs with or without a background in custom modular home construction
If that sounds like you, our franchise opportunity may be the perfect way to start your own business without the risk and hassle associated with starting a company from scratch.
Our franchise owners must meet certain financial qualifications
Our franchise fee is $48,000 per territory (20% discount for additional territories), and you can expect your total initial investment to range between $138,750 – $312,500. This includes several expenses that can vary on a case by case basis, depending on your unique situation, the specific territory, any applicable discounts, and a number of other factors. Some of the expenses considered in your initial investment include:
|Type of Expenditure|
|Initial Franchise Fee(Note 2)||$48,000||When you sign the Franchise Agreement|
|Construction and Leasehold Improvements|
|$10,000 - $45,000||Prior to opening|
|Furniture, Fixtures and Equipment(Note 4)||$5,000 - $20,000||As incurred|
|Commercial Vehicle (Note 5)||$5,000 – $10,000||Prior to opening and continuing on a monthly basis|
|Computer, Software and System (Note 6)||$2,000 - $4,000||As incurred|
|Prepaid Rent and Lease Deposits (Note 7)||$5,000 - $10,000||Varies|
|$1,000 - $2,500||Before opening|
|Insurance Deposits and Premiums|
|$2,000 - $5,000||Varies|
|Travel and Lodging for Initial Training|
|$3,000 - $5,000||Before opening|
|Grand Opening Marketing Expense (Note 11)||$5,000||As incurred but prior to opening|
|Professional Fees (Note 12)||$1,000 - $3,500||Before opening|
|Business Licenses and Permits (Note 13)||$1,000 - $3,000||Before opening|
|Printing, Stationary and Office Supplies|
|$750 - $1,500||Before opening|
|Additional Funds – Initial period of 3 months (Note 15)||$50,000 - $150,000||Before opening|
|TOTAL ESTIMATE||$138,750 - $312,500|
“Your Estimated Initial Investment”
Note 1: About Your Estimated Initial Investment – These are only estimates and your costs may vary depending on the location of your Operating Area, economic and market conditions, competition, wage rates, the capabilities of your management team, your business experience and other factors. You should carefully review these estimates with your business, accounting and legal advisors before making any decision in signing a Franchise Agreement. These estimates do not include interest and financing charges that you may incur and they do not include royalties, marketing development and other continuing fees that you will be required to pay to us. Payments are non-refundable unless otherwise noted. We do not offer direct or indirect financing. The total estimates are based on experience of our affiliate in establishing an Express Modular Business. Your costs may vary based on a number of factors including the geographic area in which you open, local market conditions, the time it takes to build sales and your skills at operating a business. We recommend that you use these categories and estimates as a guide to develop your own business plan and budget and investigate specific costs in your area.
Note 2: Initial Franchise Fee – The Initial Franchise Fee for an Express Modular Business is Forty-Eight Thousand ($48,000) Dollars. All fees paid to us for your initial franchise fee are non-refundable. There are no refunds under any other circumstances, including if you breach the franchise agreement and we terminate the Franchise Agreement.
Note 3: Construction and Leasehold Improvements – Within six (6) months of the opening of your Express Modular Business you must establish and open an EM Sales Office. You must obtain our approval of your EM Sales Office Location. An EM Sales office location may be established as a back-end office within a commercial office facility such as a class “B” office building, or at a commercial retail business location such as a strip shopping center. We have based our estimates on the assumption that the typical square footage for an EM Sales Office Location will range from 350 to 1,200 square feet and that the office facility will already be in a suitable condition for your office facility and will require only minor leasehold improvements. We have not included estimates for the construction of a Spec Home that may or may not be used by you for your EM Sales Office as we do not require your construction of a Spec Home.
Note 4: Furniture, Fixtures and Equipment – If you elect to establish an EM Sales Office you will be required to purchase certain types of furniture, fixtures and equipment for the Franchised Business. Among other things, you will be required to purchase office furniture, and interior sign.The costs for furniture and fixtures may differ depending on the material quality and on other factors.
Note 5: Commercial Vehicle – The estimate that we provided is an estimate of only the first three (3) months of lease installment payments or purchase finance financing for your service vehicle. This expense will be a monthly on-going expense. You are required to utilize a designated vehicle in connection with the day-to-day operations of the Franchised Business, including driving to and from meetings with customers and prospective customers of the Franchised Business. The vehicle must meet our standards and specifications and must be a relatively new vehicle in clean condition. The vehicle must be wrapped with Express Modular branding and design features that we approve. We anticipate that you will be leasing this vehicle and that you will be required to maintain commercial automobile insurance. Our estimate assumes that you will initially lease and operate one Express Modular vehicle. The estimate provided is for the three (3) months of lease payments for one Express Modular vehicle. These payments (i.e., your monthly fee) will be an on-going expense throughout the operation of the Franchised Business. If you add more Express Modular vehicles this fee will increase by a multiple of each additional vehicle. On-going fuel charges and vehicle maintenance charges are not included in this estimate. We designate and must approve of the branding wrap that is installed and wrapped on your approved vehicles.
Note 6: Computer, Software and System – You will be required to purchase a notebook computer for the operations of the Franchised Business. You will be required to utilize the Business Management System and pay the monthly access fee. You may be required to use certain additional software or CRM systems as part of your Franchised Business.
Note 7: Lease Deposit and Real Property – Within six (6) months of the opening of your Express Modular Business you must lease or otherwise provide a suitable office (in a commercial or residential building you lease or own) for the operations of your Franchised Business. Your EM Sales Office may be established as a back-end office within a commercial office facility such as a class “B” office building, or at a commercial retail business location such as a strip shopping center. We have based our estimates on the assumption that the typical square footage for an EM Sales Office Location will range from 350 to 1,200 square feet. Your facility must be approved by us in writing. You may secure a larger facility but it will increase your operating costs. You will be required to pay the landlord a security deposit that will be calculated based upon a number of months’ rent that the landlord requires to be held as security. The amount of your security deposit is something that you will negotiate directly with the landlord and will vary significantly based on a number of factors, including the desirability of your leased location and your own negotiations. This estimate does not include the purchase of real property should you elect to purchase the facility for the Franchised Business.
Note 8: Utility Deposits – If you establish an EM Sales Office, to secure the appropriate utilities required for the operation of your Express Modular Business, including gas, electric, water, sewer and internet access, you will be required to pay upfront deposits to each applicable utility company.
Note 9: Insurance Deposits and Premiums – You are required to maintain certain insurance respecting the operations of your Express Modular Business. Your actual payments for insurance and the timing of those payments will be determined based on your agreement with your insurance company and agent. The cost of your insurance coverage will be based on factors outside of our control. The amount charged for insurance coverage may be significantly more or less than our estimate. This estimate is for the cost of an initial deposit in order to obtain the minimum required insurance. You should check with your local carrier for actual premium quotes and costs, as well as the actual cost of the deposit. The cost of coverage will vary based on the area in which your Express Modular Business will be located, your experience with the insurance carrier, the loss experience of the carrier and other factors beyond our control. We recommend that you consult with your insurance agent before signing a Franchise Agreement.
Note 10: Travel and Lodging – Prior to opening your Express Modular Business you must complete our pre-opening training program. We do not charge a fee for our pre-opening initial training, however you will incur travel and lodging costs associated with attending our pre-opening training program. You are responsible for the travel, food, and lodging expenses that you and your participating managers will incur when you attend our training program and the salary and benefit costs of your attendees. Costs vary due to distances from your location to our training facility and the quality of the food and lodging you choose. Other factors include seasonal variations in the price of travel and lodging expenses, general economic conditions, and your persistence in obtaining the best prices available.
This estimate is for the cost for you or your Managing Owner and one designated manager (two individuals in total) to attend the initial training program held in Martinsburg, WV. We do not charge tuition for training fee for you or your designated Managing Owner and one of your designated managers. You will be responsible for all costs associated with attending the initial training program for you and your staff. The duration of the training program is 128 hours over a period of three weeks. This estimate does not include the cost of labor.
Note 11: Grand Opening Marketing Expense – Marketing expenses vary and will depend on your geographic market and the type of media that you utilize to market the grand opening of your Express Modular Business. Your marketing efforts should be directed to communities located within your Operating Area and must be approved by us. Prior to and during the initial three months of operating your Express Modular Business you must commit and spend no less than five thousand ($5,000) dollars toward the marketing and promotion of your Express Modular Business. All advertisements, marketing and promotional materials must be approved by us.
Note 12: Professional Fees – These estimates are for costs associated with the engagement of professionals such as attorneys and accountants to advise you prior to the signing of your franchise agreement and to assist with the start-up of your Express Modular Business. We recommend that you seek the assistance of professional advisors when evaluating this franchise opportunity and this Disclosure Document. It is also advisable to consult these professionals to review any lease and other contracts that you will enter into as part of the development and operation of the Franchised Business.
Note 13: Business Licenses and Permits – You must apply for, obtain and maintain all required permits and licenses necessary to operate the Franchised Business. The licenses will vary depending on local, municipal, county and state regulations. All licensing fees are paid directly to the governmental authorities when incurred and are due prior to opening the Franchised Business.
Note 14: Printing, Stationary and Office Supplies – This figure is primarily for printing a start-up order of stationery, business cards, brochures, branded apparel and general office supplies.
Note 15: Additional Funds – You will need additional capital to support on-going businesses expenses, including business expenses such as payroll, inventory, marketing, rent and utilities. In making this estimate we have not considered and do not estimate sales revenue that you may or may not generate. It is extremely common for new businesses to generate negative cash flow. This estimate is only to cover on-going expenses during the initial start-up phase of the Franchised Business comprised of the first three (3) months following the opening of your Express Modular Business. This is only an estimate and we cannot assure you that you will not incur additional expenses during the initial start-up phase or that you will not require additional capital (not included in this estimate) beyond the three (3) month initial start-up phase. There is no assurance that additional working capital will not be necessary during this start-up phase or after. Maintaining adequate working capital in your Express Modular Business is critical as the nature of the construction business involves advancing fees and payments on behalf of customers during the construction process which will require that you maintain adequate working capital. We have relied on the experiences of our affiliate in making this estimate.