Window World Franchise Costs $123K - $328K (2024 Stats)

INVESTMENT

$123,000

-

$331,000

LOCATIONS

210

Adam

Updated

May 2, 2024

Is

Window World

a franchise?

Yes,
Window World
currently
accepts
franchise
applications

Window World offers an enticing franchise opportunity for those looking to start their own business in the exterior home improvement sector. Founded in 1995 and headquartered in North Wilkesboro, N.C., Window World has established itself as a leader in replacement windows and exterior remodeling. 

The company's commitment to quality and customer satisfaction is evident in its partnership with ENERGY STAR® and the earning of the Good Housekeeping Seal for nine consecutive years​​​​.

The franchise process at Window World is designed to support new franchisees every step of the way, from an introductory call and background check to attending a Discovery Day and signing the franchise agreement. Window World emphasizes the importance of family culture among its franchise owners and provides robust corporate support, including marketing expertise and a network of passionate franchise owners, to help new franchisees build a successful business​​​​.

For those interested in joining the Window World franchise family, the opportunity promises a proven business model in a high-demand market, with low costs of ownership and a focus on simplicity and profitability. The company's approach allows franchisees to provide high-quality, affordable products and services while building a business they can be proud of​​​​.

How many

Window World

franchises

are there?

In 2022, there were
210
outlets in
the United
States, of which
210
are franchises, and
0
are corporate-owned.

What are the

Window World

franchise

fees?

Advertising fee

7.00%

Initial Franchise Fee

The initial franchise fee for a single Franchised Business is $45,000. This fee covers the grant of a license to operate the Franchised Business, initial training, access to Manuals, assistance in opening the business, and a start-up package including one computer with Microsoft Windows and QuickBooks, showroom displays, a photo shoot, demonstrator samples, start-up print materials, an initial $5,000 sign allowance, and the first twelve months of Technology Fees.

Royalties

Royalties vary based on the product, ranging from $.10 to $50 per item if a flat fee, or up to 10% of the gross purchase price for the product if a percentage. These are collected as part of the payment for products purchased from required vendors.

Technology Fee

The Technology Fee is currently $675 per month, which may increase annually by the greater of 2% or another amount designated. This fee covers the use of technology required by the Franchisor, including customer relations management systems, online presences, and other approved proprietary or third-party software and applications.

Advertising Fee

Franchisees are required to spend at least 7% of the previous year's annual gross sales on local advertising. The Franchisor may encourage spending more than this minimum depending on the Territory.

Temporary Management Fee

If the Franchisor or a third party temporarily manages the Franchised Business, the Temporary Management Fee is $300 per day, due monthly.

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

Window World

franchise?

It costs between
$123,000
and
$331,000
to start a
Window World
franchise.
Type of Expenditure Amount
Initial Franchise Fee $45,000
Franchise Agreement and Training Travel Expense $100 - $2,000
Leased Real Property $7,500 - $25,000
Equipment: Copier/Printer, Fax Machine $500
Construction/Remodeling $0 - $50,000
Security Equipment $0 - $10,000
Office Furniture $1,500 - $6,000
Office Supplies $500 - $1,000
Inventory and Supplies for Windows, Siding, and Doors $1,000 - $4,000
Inventory and Supplies for Roofing Program $500 - $1,000
Utility Deposit $100 - $500
Utilities $3,000 - $5,000
Lease Deposit $0 - $12,500
Formation of Business Entity/Acquisition of Business License(s) $1,000 - $2,000
Acquisition of any Required State & Local Professional Licenses $0 - $4,000
Vehicle $1,000 - $3,000
Initial Advertising $10,000 - $30,000
Payroll $15,000 - $50,000
Insurance $3,000 - $9,000
Legal and Professional Services $3,000 - $5,000
Exterior Signage $0 - $2,500
1-800-NextWindow Fees $157
Additional funds – 3 months $30,000 - $60,000
Total $122,857 to $328,157

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

Window World

provide

training

to its

franchisees?

Yes,
Window World
provides
training

The franchisor provides a variety of training and support to franchisees, which includes:

  1. Initial Training Program: The franchisor offers a single initial training program for the Operating Owner or the Operations Manager, as well as other designated individuals. This training covers the necessary operations, systems, and standards required to run the franchised business. Franchisees are responsible for the wages of their attendees during this training.
  2. Additional and Supplemental Training: At the franchisor's discretion or upon the franchisee's request, additional or supplemental training may be offered. This can include training on new systems, updates, or any other relevant areas that could assist in the successful operation of the franchised business. Franchisees are responsible for all expenses related to this additional training, including travel, lodging, meals, and wages.
  3. Conventions and Training Opportunities: The franchisor may, from time to time, offer conferences, instructional meetings, and other training courses. The frequency and content of these are determined by the franchisor. While attendance at some programs may be optional, the franchisor reserves the right to require attendance at certain programs deemed mandatory.
  4. Support and Advice: The franchisor commits to providing advice and information to assist franchisees in implementing the system at their franchised business. This support can come in various forms such as field support, phone, video conference, or electronically through manuals and training materials.
  5. Design Consultant Requirements: The franchisor mandates that design consultants used by the franchisee meet certain training requirements set by manufacturers and distributors of approved products. This ensures that consultants comply with the franchisor's operating procedures and standards.
  6. New Store Owner Training: This mandatory training is required for at least one Operating Owner or the Operations Manager. It focuses on engaging attendees in the complete training program to ensure effectiveness. The franchisor provides food and lodging for attendees, but franchisees are responsible for their representatives' travel expenses.
  7. WW360 Training: Between the New Store Owner Training and the opening of the franchised business, franchisees also receive training on the WW360 customer relationship management software.

Does

Window World

provides

territory

protection?

The franchisor does offer territory protection to its franchisees. Each franchisee is granted an exclusive territory, defined in the Franchise Agreement, within which the franchisor agrees not to establish or operate, nor to license any other party to establish or operate, a business selling and installing exterior remodeling products using the franchisor's trademarks and franchise system. This exclusivity applies once the franchisee commences operations of the Franchised Business.

However, the franchisor reserves the right to modify the territory under certain conditions:

  • If the aggregate population within the territory increases by more than 50% compared to the population at the time the Franchise Agreement was signed, the franchisor may require the franchisee to establish one or more satellite locations within the territory. Alternatively, the franchisee may choose to relinquish a portion of the territory, which will then no longer be considered part of the protected territory, and all rights to it will revert to the franchisor.
  • At the renewal of the Franchise Agreement, the franchisor can modify the territory if it consists of at least two counties and the franchisee has not achieved the minimum "MSI" (a term defined in the Manuals) for the market size during the two years immediately preceding the expiration of the initial term of the Franchise Agreement. The franchisor may remove underperforming counties from the franchisee's territory.

Can a

Window World

franchise

be run as

a passive

investment?

The franchise document indicates that every owner within the entity operating the Franchised Business is designated as either an Operating Owner or a Non-Operating Owner. Operating Owners are involved in the day-to-day operations and on-site supervision of the Franchised Business, while Non-Operating Owners do not have this supervisory responsibility.

Both types of owners must have an ownership interest in the entity, but there is no minimum applicable threshold mentioned for this interest. This structure suggests that there is a provision for owners to participate in the franchise without being actively involved in its daily operations, which is indicative of a passive investment opportunity.

However, it's important to note that Non-Operating Owners are still subject to certain agreements such as the Non-Operating Owner Amendment to the Franchise Agreement and are bound by confidentiality, non-compete, and non-solicit provisions of the Franchise Agreement.

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