ShelfGenie Franchise Costs $39K - $134K (2024 Stats)

INVESTMENT

$83,000

-

$137,000

LOCATIONS

271

Adam

Updated

April 17, 2024

Is

ShelfGenie

a franchise?

Yes,
ShelfGenie
currently
accepts
franchise
applications

ShelfGenie, known for its custom shelving and home improvement solutions, was founded in 2000 and began franchising in 2008. As part of the Neighborly family of brands since 2020, ShelfGenie has expanded its reach and now operates in the U.S. and Canada. 

The company specializes in Glide-Out™ Shelving Systems, designed to retrofit existing cabinets and provide an organized, accessible, and efficient storage solution. These shelving systems are custom-built, durable, and designed to glide effortlessly, enhancing the functionality of kitchens, bathrooms, garages, and more.

The headquarters of ShelfGenie is located in Atlanta, Georgia, serving as the central hub for its franchising operations and support services. This location coordinates the brand's efforts across North America, ensuring consistency in service quality and innovation in shelving solutions. 

With the backing of Neighborly, one of the largest franchisors of home service brands, ShelfGenie benefits from a robust support system and a network of complementary service providers, enhancing its market presence and service offerings. ShelfGenie's focus on high-quality, custom shelving solutions meets the growing demand for efficient home organization, making it a standout option in the home improvement franchise market​​​​​​.

How many

ShelfGenie

franchises

are there?

In 2022, there were
271
outlets in
the United
States, of which
255
are franchises, and
16
are corporate-owned.

What are the

ShelfGenie

franchise

fees?

Royalty fee

5% to 7%

Advertising fee

2% +up to 3%

Initial Franchise Fee

The Initial Franchise Fee for an Executive Franchise is $69,500. For an Owner/Operator Franchise, the fee is $29,500, with an additional $0.35 per household for territories exceeding 150,000 households.

Royalty Fee

For Owner/Operator Franchises, the Royalty Fee is the greater of $200 per month or 5% to 7% of Gross Sales, dependent on the Business's annual Gross Sales.

Advertising Fee

The Advertising Fee includes a MAP Fee of 2% of Gross Sales and a Minimum Local Marketing Amount of the greater of $1,600 or 15% of Gross Sales per month.

Technology Fee

A Software Enrollment Fee of $1,000 is charged for the setup and initial training on the required business management software.

Transfer Fees

Transfer Fees are the greater of $7,500 or 5% of the sales price per Business, facilitating the transfer of franchise ownership.

Renewal Fees

A Renewal Fee of $1,750 per Territory is charged for Executive Franchises, applicable upon franchise renewal.

Management Fees

Management Fees include a Key Accounts/Management Fee of up to 5% of total Gross Sales related to Key Account work.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

ShelfGenie

franchise?

It costs between
$83,000
and
$137,000
to start a
ShelfGenie
franchise.
Type of Expenditure Amount
Initial Franchise Fee $29,500 to $29,500 + $0.35 per additional household over 150,000
Leasehold Improvements $0 to $1,000
Vehicles $0 to $1,500
Furniture, Home Show Display, and Fixtures $0 to $5,000
Technology and Office Equipment; Supplies $1,500 to $3,000
Insurance $2,000 to $4,500
Advertising & Promotional and Local Marketing Spending for first three months $1,600 to $4,800
Training, Travel, Lodging & Food $1,000 to $3,500
Business Licenses and Permits $100 to $1,000
Professional Fees $0 to $5,000
Additional Funds - 3 Mo. $3,000 to $7,500
Totals $38,700 to $66,300 + any additional franchise fee

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

ShelfGenie

provide

training

to its

franchisees?

Yes,
ShelfGenie
provides
training

The franchisor provides a structured initial training program for franchisees and their management personnel. 

Initial Training Program

The initial training program provided by the franchisor covers various aspects of the business, including the history, philosophy, core values, expectations, use of proprietary software (WishPortal), marketing and advertising, management procedures, business systems, and franchise reporting requirements. The training schedule includes hours of classroom training and may also involve on-the-job training components.

Ongoing Assistance and Training

In addition to the initial training, the franchisor offers ongoing assistance and may require franchisees to attend up to two national business meetings or annual conventions per year. These meetings or conventions are designed to provide further learning opportunities and updates on the business. The franchisor also makes periodic visits to the franchisees' businesses to provide consultation and guidance, offer refresher training courses, and host regional meetings and conventions as necessary.

Specialized Training for Installers and Designers

If a franchisee hires an installer and/or a designer, these individuals will be required to complete specialized training. The franchisor charges a current training fee for this specialized training, and franchisees are responsible for covering all costs and expenses related to their trainees attending the training programs.

Additional Training Requirements

The franchisor may also impose additional training requirements based on the franchisee's experience, the need for retraining of certain individuals, or as a condition for curing any defaults related to operational standards. Franchisees may request training beyond the initial program, for which the franchisor reserves the right to charge a training fee.

Does

ShelfGenie

provides

territory

protection?

The franchisor specifies that you will receive the right to operate a ShelfGenie business within a designated territory, which provides you with limited territory protection. This means your franchise agreement will outline a specific area within which you have certain exclusive rights to operate and market your ShelfGenie business. The size of the territory can vary depending on the population density of the area, and adjustments may be made upon renewal of the franchise agreement if necessary.

While you receive limited territory protection, the agreement does not grant exclusive territorial rights beyond the specified territory. This implies that while you have certain protections within your designated area, there may still be competition from other franchisees, company-owned outlets, or other distribution channels or competitive brands controlled or operated by the franchisor or third parties.

However, provided you are in full compliance with your Franchise Agreement, the franchisor will not operate or grant a franchise for another ShelfGenie business with rights to market within your territory during the term of your agreement​​.

Can a

ShelfGenie

franchise

be run as

a passive

investment?

ShelfGenie specifies the required involvement of franchisees in the day-to-day operations of their franchises. If you are an individual franchisee, you must directly perform or supervise the operation of the business unless the franchisor consents otherwise.

This requirement is set out to ensure that the franchisee is actively involved in managing and overseeing the franchise operations to maintain the quality and standards expected by the franchisor.

Additionally, if the franchisee is a corporation or other legal entity, the principal shareholders, members, and/or owners must sign a Guarantee agreeing to fulfill all obligations under the Franchise Agreement. A manager, who does not necessarily need to have an ownership interest in the business, must directly supervise the business if a principal owner is not personally involved in day-to-day operations, as per the agreement.

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