BOSTON, MA – Through the end of 2022, Threshold Brands, the 500+ unit multi-brand franchisor of MaidPro, Men in Kilts, USA Insulation, Heating + Air Paramedics, Plumbing Paramedics, Granite Garage Floors, Pestmaster, Patio Patrol and Sir Grout, is launching a franchise-first model in which franchisees pay 25% of the franchise fee on signing up and start paying the rest one month after opening their unit. In addition, deferred charges will be refunded without interest.
“This model does two things. First, it removes a financial barrier for franchisees who choose to partner with our brands to achieve the dream of owning a business. We wanted to give every new franchise owner greater cash flow flexibility instead of having a large amount of cash tied up before opening. Second, it allows the franchisee to secure multiple units from day one, which means they can begin to lay the foundation for a multi-unit/multi-brand portfolio,” said R. Scott Sutton, Director of Growth.
In franchising, franchise fees are used to offset the costs of setting up and operating a franchisee. For well-capitalized Threshold brands, this is not a necessary cash flow, but rather an opportunity to partner alongside the franchisee as they begin their journey to franchise ownership.
Sutton noted his team is always diligent in the selection process.
“We have incredible franchisees driving growth within our world-class brands. This is an opportunity to offer more cash flow flexibility to our franchisees as they open. We want to remove as many barriers and stress points as possible for our franchise owners, especially when moving from signing to opening. We want our franchisees to focus on training, staffing, marketing, outreach and creating value for our consumers,” he said.