Fastest Labs Franchise Costs $101K - $133K (2024 FDD Summary)

Fastest Labs is a notable player in the drug, alcohol, and DNA testing lab franchise industry, recognized for its rapid growth and expansive franchise network. The company, operating under Fas-Tes Franchise Systems, LLC, is headquartered in San Antonio, Texas, and has been expanding its footprint, especially in Texas, the Great Plains, and throughout the South and Southwest. 

Fastest Labs has made a significant mark by offering a proven and successful business model, which does not require medical experience from its franchisees. The franchise provides comprehensive training, resources, and ongoing support to ensure the success of each franchise location​​​​. The brand's development efforts have been particularly vigorous, with numerous franchise agreements signed, including expansion into new states​​.

For those interested in joining the Fastest Labs franchise network, the process is designed to be straightforward, encompassing steps from initial investment to comprehensive training and beyond, to empower franchisees to grow both professionally and personally. 

Fastest Labs distinguishes itself with a focus on low startup costs, high gross margins, and support for achieving significant sales growth, leveraging technology and innovative sales and marketing strategies to aid franchisees in expanding their customer base​​​​.

Initial Franchise Fee

For a Standard Territory, the fee is $59,500. For a Large Territory, it increases to $80,500.

Royalty Fee

Franchisees must pay the greater of 7% of Gross Revenue or a minimum royalty, which is determined based on specific criteria.

National Brand Fund

Contributions can be up to 2% of monthly Gross Revenue, aimed at supporting system-wide promotions and brand building.

Local and Regional Advertising Cooperatives

Members may establish fees between 1% and 2% of Gross Revenues for local or regional advertising efforts.

Initial Training Fee

An additional $1,500 per person is required for training beyond the first two participants, with a $1,000 charge for each extra hotel room needed.

Supplemental Training at Your Facility

This involves a daily rate of $500 per trainer, along with their travel and accommodation expenses.

Transfer Fee

A fee of $10,000 is applicable for transferring franchise ownership, payable by either the transferee or the transferor.

Technology Fee

A monthly technology fee, currently estimated to be $200, covers various technical services and software use.

Renewal Fee

Franchisees looking to renew their agreement must pay a fee of $10,000.

The franchisor provides comprehensive training to franchisees, covering various aspects of operating the franchised business. This training includes:

Initial Training Program

• Before the opening of the franchised business, the franchisor conducts an Initial Training Program for the franchisee or an approved principal and any designated manager of the business.
• The training program is held at a location and time designated by the franchisor and lasts approximately one week, but may extend up to ten days if necessary.
• The program covers operation, pricing, drug testing, marketing, sales, computer hardware and software, start-up strategies, and other essential training for running the business.
• Franchisees are responsible for their own, as well as their employees', travel and living expenses during this training.

Ongoing and Supplemental Training

• After the franchised business opens, the franchisor provides ongoing training to any new manager upon the franchisee's request, subject to reasonable limitations on frequency and timing.
• The franchisor may charge reasonable fees for additional training, including a $500 daily fee plus travel and lodging expenses for the franchisor's trainers.
• Franchisees, principals, and designated managers may be required to attend supplemental training programs during the term of the franchise, furnished at a time and place designated by the franchisor.

Hiring and Training of Employees by Franchisee

• The franchisee is solely responsible for hiring all employees of the franchised business and is exclusively responsible for their employment terms, supervision, management, compensation, and training.
• Franchisees must ensure compliance with federal, state, and local laws, including minimum wage and overtime requirements.

The franchisor provides territory protection to its franchisees. Franchisees are granted the right to operate an FT Business within a defined geographic area known as the "Territory."

Franchisees are prohibited from soliciting or providing services to customers outside their Territory, especially if the billing zip code falls within another franchisee's territory, except as authorized by the franchisor in writing or as outlined in the Franchise Brand Standards Manual.

The franchisor retains certain rights, including the right to operate or grant others the right to operate an FT Business outside of a franchisee's Territory. However, within the franchisee's designated Territory, the franchisor agrees not to establish or authorize any other person or entity other than the franchisee to operate a franchised business during the term of the franchise agreement​​​​​​​​.

The Franchised Business must always be under the direct, day-to-day, full-time supervision of either the Franchisee, one of its Principals (if the Franchisee is an entity), or a Designated Manager who has been approved by the Franchisor and has satisfactorily completed the Franchisor's training program.

If the Franchised Business is supervised by a Designated Manager, the Franchisee or the approved Principal must remain actively involved in overseeing the operations conducted under the manager's supervision.

This requirement emphasizes the need for either the Franchisee, a Principal, or a Designated Manager to be responsible for the everyday operations of the business, ensuring that they do not engage in any other significant management responsibilities or activities that might conflict with their obligations to the Franchise​​​​.