From Storefront to Doorstep: Mobile Franchising in a Nutshell
Franchising has come a long way, and one of its most exciting paths leads directly to our doorsteps.
Traditionally, we used to go to stores in order to get what we want. But with our increasingly busy lives and a growing comfort level with technology, franchising is flipping the script, and franchises are now taking the stores directly to the its customers, be it at the customers’ home or wherever the customers prefer.
Time is the truth teller, they say, and what time has been telling us since the emergence of mobile franchising is that it is more than just a passing trend, with more franchises making the bold move to venture into mobile franchising too.
This blog post will introduce some brands that are currently offering mobile franchises from mobile pet grooming services to mobile personal fitness training to mobile lawn services to mobile property cleaning services, to even in-home personal care and companionship services. The information contained in this post was compiled from each brands franchise disclosure document, which we found through online databases.
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Waldrop & Colvin is a franchise law firm and they help business owners (franchisors) and entrepreneurs (franchisees) evaluate franchise opportunities so they can make informed decisions. You can learn more about franchising and franchise law by exploring their site (Overview of federal franchise law and State-by-State franchise requirements).
MOBILE FRANCHISING
Mobile franchising is a contemporary adaptation of the traditional franchise model but without the need for a physical store location as businesses operate on-the-go, delivering products and services directly to customers’ chosen location rather than from a fixed store or establishment.
TYPES OF FRANCHISING
Traditional Franchising
Traditional franchising is basically the typical set-up we are accustomed to where a franchise has a physical store which opens and closes at set business hours. In order for customers to avail the products sold or services offered by traditional franchises, the customers would usually have to visit the physical store.
Mobile Franchising
Mobile franchising is a set-up where businesses operate from equipped vehicles that go from one place to another, or if not operating from an equipped vehicle, mobile franchises carry all necessary tools to delivery services directly to the chosen location of a customer.
BENEFITS OF MOBILE FRANCHISING
Mobile franchising has presented itself as an innovative business model in the business world, especially to the franchising industry as it is an alternative to the traditional franchise model that has long been known by franchisors and franchisees alike.
Mobile franchising offers a multitude of benefits which are discussed below:
Geographic Flexibility
One notable benefit of mobile franchising is its geographic flexibility. Since the operation of mobile franchises do not rely on a physical store, mobile franchises have freedom of movement which allows it to strategically position its business to specific customer demographics, maximizing its market penetration and enhancing its potential for revenue generation.
Because it has freedom of movement, mobile franchises can serve a broader range of areas and can adjust their service areas based on customer needs since its operations are not confined to just a single location. This geographic flexibility allows mobile franchises to reach customers in suburban neighborhoods, rural areas, and even urban centers where its product or service offering may be scarce.
For example: a mobile pet grooming franchise allows groomers to render services to different clients from different areas (suburban/rural/urban) on the same day, allowing clients to skip traveling towards the pet salon, dropping off their pets, and the waiting periods in between.
Time Autonomy
Another benefit of mobile franchising is its time autonomy. The operation of mobile franchises do not abide by typical store hours as mobile franchises are able to schedule its business operations based on customer demands and needs. This means to say mobile franchises may operate early in the morning or late into the evening in consideration of customers’ availability.
This time autonomy allows customers to avoid rushing from their engagements just to make it to the franchise’s store within business hours because mobile franchising adapts to the customer’s schedules, and not the customers adapting to the business hours of the franchise business.
For example: a mobile lawn service franchise does not operate at set hours that are the same with a customer’s working hours, i.e. 9AM to 5PM daily, thus customers can avail of lawn services early in the morning or late in the afternoon in order to personally see the lawn services done on their property without necessarily having to file time off from work.
Operational Scalability
Another benefit of mobile franchising is its operational scalability. As mobile franchises are without the constraints of operating from fixed locations and fixed business hours, it is able to strategically scale its operations based on market demand, customer preferences, seasonal trends and etc.
Mobile franchises can adjust the number of resources it utilizes commensurate to the fluctuating demands and preferences for its offerings, making it more efficient from an operational standpoint for the mobile franchise, as opposed to a typical franchise where the cost of operating a physical store remains the same regardless of the number of products sold or services availed of.
For example: a mobile property cleaning franchise need not deploy and use all 10 vacuums it has in one day if it only has 7 scheduled cleaning appointments for a particular day – a clear example of how mobile franchises are able to adjust its resources accordingly.
Personalized Services
Another benefit of mobile franchising is its offering of personalized services to its customers. By bringing the franchise business directly to the customer’s chosen location, mobile franchises are able to better understand and ultimately better cater to the preference of the customers.
For example: A mobile fitness training franchise allows customers to have workout sessions tailored to their specific fitness goals and preferences, freeing the customer from following a generic workout plan which is usually adopted by most gyms.
Customer Convenience
Undeniably, one of the biggest benefit of mobile franchising is the customer convenience it offers. By providing on-the-go and on-demand services at the customer’s preference or convenience, mobile franchises redefines service delivery by prioritizing customer convenience. With services more accessible to the customers through mobile franchising, usual problems like travel, accessibility, busyness and time constraints are evaded, if not totally eliminated.
For example: a mobile in-home personal assistance franchise allows customers with difficulty in their day-to-day activities have a companion in their own home and have someone attend to their essential needs, eliminating the need for these customers to personally go out to stores to obtain their desired products or services.
BRANDS OFFERING MOBILE FRANCHISING
Zoomin Groomin®
(Mobile Pet Grooming Franchise)
Business Concept
Zoomin Groomin provides a mobile franchise opportunity where franchisees purchase and operate one or more branded vans outfitted for pet grooming, within a designated territory. Essentially, franchisees drive to pet owners homes and provide grooming, along with related services and products. This is the mobile take on the traditional brick-and-mortar concept.
Franchised Outlets in the United States
Zoomin Groomin has been operational for two decades, but hadn’t expanded a great deal through franchising until being acquired by Loyalty Brands. According to Item 20 of Zoomin Groomin® 2024 Franchise Disclosure Document (“FDD”), Zoomin Groomin had 70 franchised outlets in operation across the US by the end of 2023. This is up from 15 outlets at the end of 2022.
These 70 franchised outlets are found in the following states: California, Colorado, Connecticut, Florida, Georgia, Kansas, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Nevada, New York, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah and Virginia. A current list of locations can be found on their website.
Initial Investment Needed
Franchisors disclose an estimated initial investment in Item 7 of their franchise disclosure document. In this case, the franchisor estimates the required initial investment to range from $63,674 to $188,140. A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of Zoomin Groomin®’s 2024 FDD. Like most mobile businesses, procuring and upfitting a vehicle is one of the highest startup costs.
Initial Franchise Fee
Upon signing of the franchise agreement, Zoomin Groomin® charges a franchisee an initial franchise fee of $45,000. This amount is non-refundable. According to Item 5 of Zoomin Groomin®‘s FDD, a franchisee can operate one or more mobile pet grooming van/vehicle within the franchisee’s territory.
DISCOUNT FOR VETERANS AND FIRST RESPONDERS
Zoomin Groomin® offers a 10% discount on the initial franchise fee to all qualified respondents and first responders who purchase a territory.
DISCOUNT FOR EXISTING FRANCHISEES
Zoomin Groomin® also offers a $5,000 discount on initial franchise fee for exisitng franchisees who purchase a second or subsequent terrtitory.
Royalty Fee
The royalty fee collected by Zoomin Groomin® from its franchisees is 8% on Gross Revenue weekly, subject to a minimum weekly royalty fee of $125. All other ongoing fees are disclosed in Item 6 of their disclosure document.
Disclaimer: Zoomin Groomin is a valued and active client of our law firm. This is not an advertisement or offering. We cannot and do not represent any prospective buyer in the evaluation, purchase, or operation of a Zoomin Groomin business. This post is for informational purposes, is based solely on public information, and does not reflect any view or position of the brand.
GymGuyz
(Mobile Personal Fitness Training Franchise)
Business Concept
GYMGUYZ Franchising LLC offers the opportunity to own and operate a mobile personal fitness training business focusing on individualized one-on-one fitness, group sessions and corporate fitness.
GYMGUYZ franchises offer its product and services to the general public, including health and fitness conscious individuals and corporate organizations seeking the value of a personal trainer with the convenience and efficiency of having the personal trainer go to the client.
Franchised Outlets in the United States
According to Item 20 of GYMGUYZ’s 2024 Franchise Disclosure Document (“FDD”), it has 119 franchised outlets across the US by the end of 2023. This figure represents a 23% increase in its franchised outlets since GYMGUYZ began 2023 with just 97 outlets.
These 119 franchised outlets are found in the following states: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas and Virginia.
Initial Investment Needed
The initial investment needed for aspiring franchisees to have their own GYMGUYZ franchised business is estimated to range from $92,100 to $174,000. A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of GYMGUYZ’s 2024 FDD.
Initial Franchise Fee
Upon signing of the franchise agreement, GYMGUYZ charges a franchisee an initial franchise fee of $49,500. This amount is non-refundable. According to Item 5 of GYMGUYZ’s FDD, the initial franchise fee is for a protected territory of 30,000 households.
In the event that a franchisee is approved by GYMGUYZ to purchase a territory that contains in excess of 30,000 households, a franchisee shall pay $1.50 per household over the standard 30,000 households, up to a maximum additional 15,000 household limit. Therefore, the maximum additional initial franchise fee that a franchisee could pay for additional households is $22,500 ($1.50 per household x additional 15,000 household limit)
DISCOUNT FOR TWO OR MORE FRANCHISES
If GYMGUYZ approves a franchisee to purchase two franchises, there is a $5,000 discount on the initial franchise fee for the second unit.
If GYMGUYZ approves a franchisee to purchase three or more franchisees, there is a $5,000 discount on the initial franchisee for each of the three franchise agreements.
DISCOUNT FOR HONORABLY DISCHARGED US VETERANS
GYMGUYZ also offers a $5,000 discount for honorably discharged United States Veterans, subject to the presentation of DD-214 documentation.
Royalty Fee
The royalty fee collected by GYMGUYZ from its franchisees is 7% of Gross Sales which is payable every other Wednesday for the previous two week period ending the prior Sunday.
Lawn Squad
(Mobile Lawn Care Services Franchise)
Business Concept
Lawn Squad Franchising LLC offers the opportunity to operate a mobile lawn care services franchise that offers residential and commercial weed control, lawn care, and related services.
With its primary market consisting of individual homeowners and commercial businesses, Lawn Squad franchises operate its franchised business from a specific street address or site that Lawn Squad has approved for the franchisee’s business premises.
Franchised Outlets in the United States
According to Item 20 of Lawn Squad’s 2024 Franchise Disclosure Document (“FDD”), it does not have any franchised outlets yet in the US by the end of 2023.
This is because, as explained by Lawn Squad in its FDD under Notes to Item 20, Lawn Squad only began offering franchises in September 2023, and its fiscal year ends on December 31.
However, while Lawn Squad still does not have any franchised outlets by the end of 2023, according to Table 5 of Item 20 of Lawn Squad’s 2024 FDD, it had 3 franchise agreements signed but outlets have not yet opened as of December 31, 2023 in the following states: Georgia, Illinois and Tennessee.
Initial Investment Needed
The initial investment needed for aspiring franchisees to have their own Lawn Squad franchised business is estimated to range from $121,630 to $159,616. A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of Lawn Squad’s 2024 FDD.
Initial Franchise Fee
Upon signing of the franchise agreement, Lawn Squad charges a franchisee an initial franchise fee of $45,000. This amount is non-refundable. According to Item 5 of Lawn Squad’s FDD, the initial franchise fee is for a franchise territory with a population of up to 100,000 Single Family Dwelling Units (SFDU)*.
Lawn Squad may grant a franchisee a territory with more than 100,000 SFDUs for a cost of $0.45 per additional SFDUs, up to a maximum of 150,000 SFDUs. Therefore, the maximum additional initial franchise fee that a franchisee could pay for additional SFDUs is $67,500 ($0.45 per SFDU x additional 15,000 SFDU limit)
*A Single Family Dwelling Unit refers to a structure principally designed for the residential habitation of one family.
ADDITIONAL TERRITORY DISCOUNT
If a franchisee licenses additional territories with Lawn Squad at the time of signing of its first franchise agreement, the initial franchise fee for the second territory is discounted to $35,000 while the initial franchise fee for the third territory is discounted to $24,500.
This discount applies to the second and third territory licensed from Lawn Squad at the time of signing of the first franchise agreement.
EXISTING FRANCHISEE DISCOUNT
Lawn Squad offers a 30% discount on initial franchise fee and any applicable additional SFDU fee for additional territories licensed under a separate franchise agreement by existing Lawn Squad franchisees who have met Lawn Squad’s qualifications.
EXISTING FRANCHISEE AFFILIATE DISCOUNT
Lawn Squad offers a discount for existing franchisees of its affiliates for the first two territories to $15,000 per franchised business at the time of signing the first franchise agreement. Should there be a third and/or subsequent territories licensed by the franchisee affiliate at the time of signing the first franchise agreement, there shall be a 30% discount on the initial franchise fee and any applicable SFDU fee.
EXISTING EMPLOYEE DISCOUNT
Lawn Squad offers a 50% discount on initial franchise fee and applicable additional SFDU fee per franchised business for any employee of AB Inc. who meets its qualifications for licensing a franchised business, provided that the employee:
- owns at least 51% of the franchised business
- must be designated as the Key Person in the franchise agreement
- meet requirements of Lawn Squad to license a franchised business
VETERANS DISCOUNT
Lawn Squad offers a 30% discount on initial franchise fee and any applicable additional SFDU fee for all honorably discharged veterans of the American and Canadian armed forces.
This discount is for the first franchise only.
ACITVE-DUTY DISCOUNT
Lawn Squad offers a 30% discount on initial franchise fee and any applicable additional SFDU fee for all active personnel in the American or Canadian armed forces.
This discount is for the first franchise only.
DIVERSITY DISCOUNT
Lawn Squad offers a $5,000 discount on initial franchise fee and any applicable additional SFDU fee for all minority-owned, women-owned, and LGBTQ+ owned businesses. This refers to businesses owned by a woman, minority, or individuals of the LGBTQ+ community who meet Lawn Squad’s requirements to purchase a franchised business.
This discount is for the first franchise only.
LOCAL HERO / FIRST RESPONDER'S DISCOUNT
Lawn Squad offers a $5,000 discount on initial franchise fee and any applicable additional SFDU fee for all law enforcement officer, firefighters, doctor, nurse or emergency medical technician / paramedic-owned businesses.
This discount is for the first franchise only.
Royalty Fee
The royalty fee collected by Lawn Squad from its franchisees is 7% of Gross Revenue which is collected semi-monthly, subject to the payment of a minimum annual royalty fee.
The annual minimum royalty fee obligation of a franchisee to Lawn Squad is equal to the amount of royalty fees a franchisee is required to pay Lawn Squad by achieving the applicable Minimum Performance Requirements through achieving the below Gross Revenue amounts:
- Months 1 to 12 = $50,000 minimum gross revenue
- Months 13 to 24 = $100,000 minimum gross revenue
- Months 25 to 36 = $150,000 minimum gross revenue
- Months 37 to 48 = $200,000 minimum gross revenue
- Months 49 to Expiration Date = $250,000 minimum gross revenue
Maid This
(Mobile Cleaning Referral Agency Franchise)
Business Concept
MaidThis Franchising LLC offers the opportunity to establish, develop, and operate a cleaning referral agency focused on providing cleaning services to residential and vacation rental locations (booked through services like Airbnb and VRBO)
With its market consisting of hosts of rental homes/units and individuals in need of residential cleaning services, the services provided by MaidThis is seasonal based on geography since the market is residential homes used as vacation rental locations.
Franchised Outlets in the United States
According to Item 20 of MaidThis’ 2024 Franchise Disclosure Document (“FDD”), it has 13 franchised outlets across the US by the end of 2023. This figure represents a 160% increase in its franchised outlets since MaidThis began 2023 with just 5 outlets.
These 13 franchised outlets are found in the following states: Colorado, Florida, Indiana, North Carolina, South Carolina, Pennsylvania, and Utah.
Initial Investment Needed
The initial investment needed for aspiring franchisees to have their own MaidThis franchised business is estimated to range from $49,550 to $67,550. A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of MaidThis’ 2024 FDD.
Initial Franchise Fee
Upon signing of the franchise agreement, MaidThis charges a franchisee an initial franchise fee of $39,000. This amount is non-refundable.
SECOND AND SUBSEQUENT BUSINESS DISCOUNT
MaidThis offers a 50% discount on initial franchise fee on a second and any subsequent MaidThis business purchased.
VETFRAN DISCOUNT
MaidThis offers a 10% discount on initial franchise fee for the first MaidThis business purchased by United States military veterans who will own a majority interest in the MaidThis business, provided the veteran meets MaidThis’ qualifications for new franchisees.
This discount does not apply to second and subsequently purchased MaidThis business.
Royalty Fee
The royalty fee collected by MaidThis from its franchisees is 6% of Gross Sales which is paid by the franchisee on the 5th business day of each month, subject to an annual minimum royalty.
The annual minimum royalty fee obligation of a franchisee to MaidThis is dependent on the franchisee satisfying the Minimum Performance Requirement by achieving the below annual Gross Sales amounts:
- First 12 Months = $50,000 minimum gross sales
- Second 12 Months = $125,000 minimum gross sales
- Third 12 Months = $250,000 minimum gross sales
- Fourth 12 Months = $375,000 minimum gross sales
- Fifth 12 Months and Thereafter = $400,000 minimum gross sales
Synergy HomeCare
(Mobile NON-mEDICAL, IN-HOME PERSONAL ASSISTANCE FRANCHISE)
Business Concept
SYNERGY HomeCare Franchising LLC offers the opportunity to operate a business that offers non-medical, in-home personal assistance such as in-home personal care and companionship, child care, meal preparation, medication reminders, medical and social appointment scheduling and managwment, organizational and bill paying assistance, housecleaning services and light home maintenance to seniors, the convalescing, disabled persons and others who need help with daily living activities.
Franchised Outlets in the United States
According to Item 20 of Synergy HomeCare’s 2024 Franchise Disclosure Document (“FDD”), it has 499 franchised outlets across the US by the end of 2023. This figure represents a 10% increase in its franchised outlets since Synergy HomeCare began 2023 with just 454 outlets.
These 499 franchised outlets are found in the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Iowa, Indiana, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming.
Initial Investment Needed
The initial investment needed for aspiring franchisees to have their own Synergy HomeCare franchise is estimated to range from $73,148 to $150,479. A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of Synergy Homecare’s 2024 FDD.
Initial Franchise Fee
Upon signing of the franchise agreement, Synergy HomeCare charges a franchisee an initial franchise fee of $50,000. This amount is non-refundable. This initial franchise fees covers one Protected Territory which includes approximately 20,000 persons who are age 65 or over as of the date of the franchise agreement.
If the protected territory has less than 20,000 persons who are aged 65 or older, the franchise fee shall be reduced by $2.50 per person, but not below a minimum territory size of 10,000 persons who are aged 65 or older.
ADDITIONAL PROTECTED TERRITORY DISCOUNT
Synergy HomeCare offers a 20% discount on additional protected territory purchased at the time of the purchase of the initial protected territory.
VETFRAN DISCOUNT
Synergy HomeCare offers a 15% discount on initial franchise fee for franchises purchased by qualified veterans of the United States Armed Forces.
Royalty Fee
The royalty fee collected by Synergy HomeCare from its franchisees is 5% of Gross Sales which is due weekly, subject to a monthly minimum royalty fee which is applicable beginning the seventh month after the franchised business opens and only if the franchisee does not obtain the minimum monthly sales quota for the prior month.
The minimum monthly average sales quota for a protected territory with 20,000 or more people aged 65 or older are as follows:
- Year 1 Monthly Average = $10,000 minimum monthly average gross sales
- Year 2 Monthly Average = $20,000 minimum monthly average gross sales
- Year 3 Monthly Average = $30,000 minimum monthly average gross sales
- Year 4 Monthly Average = $40,000 minimum monthly average gross sales
- Year 5 Monthly Average = $50,000 minimum monthly average gross sales
REMINDER:
Remember that working with a franchise attorney to evaluate a franchise opportunity is essential.
Meet the Author:
Christine Bontuyan is a lawyer in the Philippines and she is based in Cebu City. She earned her Juris Doctor degree in 2020. Apart from handling civil and criminal cases in the Philippines, Christine serves as a paralegal for reputable US law firms. She previously served as an elected public official in the Philippines, as a Sangguniang Kabataan Chairperson from 2018 to 2023.
