Surface Specialists Franchise Costs $43K - $56K (2024 Stats)

INVESTMENT

$43,000

-

$56,000

LOCATIONS

48

Adam

Updated

May 2, 2024

Is

Surface Specialists

a franchise?

Yes,
Surface Specialists
currently
accepts
franchise
applications

Surface Specialists is a prominent franchise in the home restoration industry, specializing in bathroom and kitchen repair and refinishing services. Founded in 1981 by Wayne and Jan McClosky, the franchise initially focused on the repair and pattern matching of plastic laminate countertops and spot repairs of damaged fiberglass and porcelain bathware surfaces. Recognizing the vast potential in this sector, Surface Specialists expanded its services as new materials and processes were developed, ensuring their franchises could cater to all segments of the home restoration industry.

The franchise began offering opportunities to entrepreneurs in 1982, marking the start of its expansion. Over the years, Surface Specialists has introduced a variety of services, including whirlpool conversions, acrylic tub liners, glass polishing, and more, significantly broadening its scope beyond the initial offerings. The franchise has been under the leadership of different owners, including John and Irene Lucas and, more recently, Dan and Miranda Kaplan, who have continued to evolve the brand.

Surface Specialists stands out in the industry for its comprehensive range of services, from repairing minor damages to complete refinishing and remodeling, offering solutions that fit various customer needs and budgets. The franchise's commitment to using high-quality materials and streamlined procedures ensures superior service quality compared to competitors. Additionally, Surface Specialists has been recognized for franchisee satisfaction and innovation, reflecting the strength of its franchise model and the support provided to its franchisees​​​​​​.

How many

Surface Specialists

franchises

are there?

In 2022, there were
48
outlets in
the United
States, of which
48
are franchises, and
0
are corporate-owned.

What are the

Surface Specialists

franchise

fees?

Advertising fee

1.00%

Initial Franchise Fee

The Initial Franchise Fee is $36,000, payable before opening the business.

Royalty Fee

The Royalty Fee is 5% of Gross Receipts, with a monthly minimum of $250, due on or before the 15th day of each calendar month for the previous month.

Advertising Contribution

The Advertising Contribution is 1% of Gross Receipts, due on or before the 15th day of each calendar month for the previous month.

Transfer Fee

The Transfer Fee is $5,000, payable before the completion of the transfer.

Audit Expenses

Audit Expenses vary and are due after inspection or audit, payable only if the understatement is greater than 3%.

Interest Expenses

Interest Expenses are the lesser of 18% per year or the maximum rate permitted by law, due when Royalty Fee, Advertising Contribution, or other amounts due are not timely paid.

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

Surface Specialists

franchise?

It costs between
$43,000
and
$56,000
to start a
Surface Specialists
franchise.
Type of Expenditure Amount
Initial Franchise Fee $36,000
Real Estate and Leasehold Improvements $0 to $2,500
Signage $200 to $1,500
Equipment and Fixtures $300 to $1,000
Deposits and Business Licenses $100 to $1,000
Insurance $1,800 to $3,000
Computer System $800 to $1,500
Additional Funds - 3 Months $4,000 to $9,500
Total $43,200 to $56,000

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

Surface Specialists

provide

training

to its

franchisees?

Yes,
Surface Specialists
provides
training

The franchisor provides a comprehensive training program for franchisees, which encompasses various aspects of operating the franchised business

Initial Training Program

This training program includes approximately two weeks of instruction covering all operational facets of the franchise. The training is held at Matthews, North Carolina, or another suitable location chosen by the franchisor in the United States. The Initial Franchise Fee covers lodging and travel expenses for one person attending the training. However, meal expenses and other living expenses incurred during this period are the responsibility of the franchisee.

Continuing Advisory Service

In addition to the initial training, the franchisor may offer a continuing advisory service, which includes consultation on promotional, business, or operational problems, along with analysis of the franchisee's sales, marketing, and financial data. The franchisor may also provide materials and bulletins on sales, marketing developments, products, and techniques, either without charge or according to the current price list, to assist franchisees in their operations.

Does

Surface Specialists

provides

territory

protection?

The franchisor offers territory protection to franchisees. Once granted a "Surface Specialists" franchise, franchisees receive a "Designated Territory," which typically encompasses one or more cities, towns, or counties with a population ranging from 100,000 to 2,000,000. This Designated Territory is outlined in Section 1 of the Franchise Agreement.

Within this territory, franchisees are assured exclusivity, meaning the franchisor commits not to establish any company-owned or franchised outlets selling the same or similar goods or services under the same or similar trademarks or service marks licensed for use through the franchise agreement.

However, it's important to note that the franchisor reserves the right to distribute products or services within the Designated Territory through alternative channels, including the Internet, and may sell similar products or services under a different trademark from the "Surface Specialists" trademark without compensating the franchisee for orders solicited or accepted inside their territory.

Can a

Surface Specialists

franchise

be run as

a passive

investment?

Franchisees are required to personally manage and operate the Surface Specialists Business unless they receive prior written consent from the franchisor to delegate their authority to a Designated Manager. It is not necessary for the Designated Manager to own an interest in the franchisee entity. Either the franchisee or their Designated Manager must attend and complete the franchisor's training program.

This requirement underscores the franchisor's emphasis on the franchisee's direct involvement in the day-to-day management and successful operation of the franchised business, ensuring adherence to the franchisor's standards and operational procedures​​.

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