- What kind of equipment and supplies discounts can I expect?
Our executive team has spent over 20 years in the business and has used and researched the best equipment and products for the job. We are not interested in making deals with certain manufacturers just so we can mark up and sell product. We are interested in the most versatile and proficient equipment on the market today. Because of our experience, we know that time is money and our offering of equipment and supplies is all built towards the highest per day output combined with the deliver of quality every time. Compromise is not an option for Stone Restoration Services. For this very reason, we realize that no one company will have all of the answers for our needs. Therefore we have built relationships with several leading worldwide manufacturers who will provide us with the best equipment and product for each job at hand. This fluid interaction also keeps our suppliers eager to compete for our business for combined success.
- What kind of national accounts exist for sales?
There is stone everywhere. Traditionally, it was an elite item that was used in only the most expensive homes and commercial facilities. The recent affordability has made it a commodity, and it is literally in every application imaginable. Our sales and marketing program is focused on high end residential and production builder homes that are upper mid-range. This allows for companies like Pulte, Beazer, MKB, etc. Our primary focus is on hotel chains such as the Ritz Carlton, Marriott, Four Seasons, Starwood, Hyatt, and Hilton hotel companies. Commercial buildings are marketed through BOMA, and members include Trammel Crow, Prudential Properties, and many more. The shopping mall ownership in the U.S. is very limited, and about 10 companies own almost every major shopping mall. These are solicited through the ICSC. Trade publications and trade shows will be used as marketing vehicles for each of these industries. Over 3 billion sf of stone has been installed during the past ten years, and counting, and growing.
- How many people are in the network?
Right now the network is small. This is a ground floor opportunity. Fees will increase after a certain number of franchisees sign on. We expect around 100 fabrication franchisees, 150 restoration franchises, and 150 installation franchises, with another 200 Stone Care Central Partners. Associations and groups we are active in, and amount to 4,000 strong supplement our current network. There are currently 30 Stone Care Central Partners and 6 Stone Restoration Franchises.
- Who will train me?
Our training programs are the best in the industry. Produced and conducted by Tom McNall, who is a renowned author on the subject, has had his own restoration business for over a decade, conducts radio talk shows, and is a board member of and trainer for the MIA. Training will take place in our shops and in yours.
- Where will I be trained?
We conduct training sessions monthly at seven regional facilities specially designed for that purpose. You and 2 of your staff will attend a weeklong session, and be offered a second week in our shop. When you open, our regional project manager will be there for your first jobs, and insure you are comfortable with the working equipment and systems. The P.M. will work with you for 2 weeks at your location.
- How much money will I need?
There are specific budgets available for review, which include operations and cash flow. The equipment is around $30,000 per crew, plus a vehicle. We have arranged fleet sales with GM and Ford. All of these costs are capable of being financed. Your fees can be paid at once for a discount, or we will spread them out for you. Other cash required to start your business is around $25,000 to be comfortable.
- How much credit will I need?
Equipment and truck; $50,000 per crew. We recommend each unit starts with 1 crew and fills the pipeline, then adds a second crew and business and income allows. Most big areas will have up to 8 crews, and major metropolitan areas could grow as large as 20 crews.
- Are the financing rates good?
Because of our projected volume, we have been able to negotiate very favorable rates. We also guarantee the loans up to a certain level, which also holds rates down. However, lease rates are always based on your credit. If a loan defaults, we take the equipment and move it to another franchisee. You may have or desire a relationship with your local bank. In this case we have a package for you to take to the lender to help obtain financing. Local rates at banks may be better than ours, but this is doubtful. Fortunately, rates are very low and look to remain there for the near future.
- What products do you use?
We use only time tested products that get results. Rather then deal with only one major manufacturer, we have solid relationships with several well known and respected industry leading product developers. Some of our products will be private labeled and in other cases, we will allow the manufacturer to keep their names so as to showcase the professionalism and power of our relationships.
- Who manufactures the equipment?
We have evaluated and selected equipment from numerous manufacturers. No one company has the best everything. So, there are multiple manufacturers, but we have private labeled the equipment so it all carries a common name. Details and specs are available to qualified franchisee candidates.
- How much money can I make in this business?
There are forecast prepared based on actual performances of other restoration businesses, and these are available to qualified candidates. Rates vary from city to city, and will have to be evaluated in you area with a custom forecast prepared. However, each crew has the income potential of around $300,000 annually, with profit levels, pre-tax, or around 35-40%. This is among the highest profit potential in the business world. It is considered that each franchisee should have at least 3 crews, and a maximum of 10. So, you will make between $300,000 and 1 million annually.
- How large are the territories?
The territory size is sold to you based on a formula that uses the US Census information. The territory is sold at $1 pre 20 households with a mean income of over $40,000, in your desired area. So, you and your start-up budget determine the territory size. If you buy part of a city, say a metro county, you will be allowed to service the entire area until another franchisee purchases the territory. If there is another bona fide buyer, you will be offered the right of first refusal and can buy the additional territory yourself. No territory will be smaller than the average size metropolitan county in your area.
- What happens with overlapping territories?
If there are multiple franchisees in one area, each must operate only in their licensed area. If there is just cause for a crossover, then a commission will be paid to the franchisee who hold the license in that territory. For example, if you have a good customer who needs your services in another licensed territory, and he wants to do business only with you, you will contact the company and advise them, and a 10% commission will be paid. If you operate in someone else’s territory without permission your franchise license may be revoked. Telephone lines in closely knit areas will be similar to pizza chain phone systems where the phone company delegates the division of calls based on your telephone exchange.
- Who will help me sell my products and services?
Your area project manager will assist you in compiling a local sales and marketing plan, train your sales people, and make calls with you and your staff. Also, we are selling on a national basis every day, advertising, and attending trade shows. A copy of our national sales and marketing plan and budget will be available to all franchisees on an ongoing basis. The way our program is set-up, if you don’t sell we don’t earn royalties, so no one wins. Thus, we are motivated to help you drive sales.
- What is a SCC kiosk?
We have a strategic alliance with a national distribution company that will have kiosks set up in tile and fabrication shops around North America. These computer interactive kiosks will recommend our services and products that we carry to homeowners who visit these shops to have stone and tile installed. This is a symbiotic relationship that can reap many benefits for our individual franchisee members.
- What is a SCC partner?
A Stone Care Central partner is a restoration professional that may not be capable of or desire to become a franchisee. They do enjoy the network, training, products, equipment, and web based services. They will be an important ally for your to reach outside of your territory and develop business sin more remote areas away from major hubs. Typically, these partners will operate their own crew, and do all or part of the daily workload themselves.
- Who is the MIA?
The Marble Institute of America is the stone industry association in the U.S. They serve as advocate for all aspects of the industry, produce seminars and trade shows, track trends and statistics, create training programs, write and manage specifications for the industry, and work with the AIA to insure a standard of construction excellence in the use of stone. They are the good guys.
- Who is the AIA?
The American Institute of Architects the association of architectural design and engineering specialist that is over 60,000 strong in the U.S. Architects specify types of construction and materials, and installation procedures for every aspect of a construction job. The association insures legislation, manages specifications, does research and development, and requires architects to earn 20 credit hours per year in continuing education programs.
- How many people can I get trained?
The franchise fee paid will allow 3 people to be trained at any time. Additional training will be offered at a discounted rate of $1,000 per session, per person. Sessions run monthly in your region, and cost between $1400 and $2000 per session.
- Why join a franchise instead of doing it on my own?
You can start any business on your own. Statistics compiled by experts, not us, show that being a franchisee provides for an 85% greater chance of success than a private start-up. See articles in any publication that deals with the economy and business/small business. Forbes, Inc., Money, Entrepreneur, Fortune, Success, Venture, Income opportunity, etc. Just go to their websites and search for articles about franchising. The reason that franchises in every industry are more successful is that being part of a larger group gives you advantages your competition does not have. Greater buying power equals lower prices and better support services. National sales and marketing and name recognition drives business to you. Having the support of the franchiser and the others in the network give your depth. We have already made the mistakes that we can help you avoid in your start-up. Our systems and procedures, and training jump start your business and save you money from the start. Research and development keeps the group at the cutting edge of the business battle. We send staff to every related trade show and seminar in the associated industries. We are constantly evaluating new equipment and products, and even participate with manufacturers in their development and testing. We help you succeed in business in every way, provide a support system, and help you when you need it. If you get, or want, a big job that is too much, either we or other franchisees will assist you. And finally, performance that has been tested and proved successful.
- What do I have to do to qualify?
It is necessary for you to have enough financial depth to start the business as outlined on the questionnaire that will be supplied to interested candidates. In addition, we have a personality profile that evaluates certain personality characteristics as they relate to business and business success. It is important to us and our franchisees that we have the strongest and most successful group in the industry. Business and management background are an asset, but not necessary. And, of course, the concept is to grow a thriving business that will provide for you and your family for generations to come. So, the ability to grow the business financially and philosophically with our help and through our programs, to a level commensurate with the market, which will be outlined in the UFOC and agreement, is also a requirement.
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