Compound Profit
Click
here to link to Compound Profit’s detailed company profile
Compound Profit endorses a proven fundability system that results in businesses achieving a Business Credit Asset that will enable access to funding and credit for the life of the business. Our Business Fundability System™ offers a range of options to help increase working capital, reduce costs and increase sales and profits. Compound Profit specializes in working with companies in the pre-banking phase, including start-ups and credit-challenged businesses.
Compound Profit works diligently to provide alternative financing solutions in these challenging economic times. They align their services to meet your specific goals and objectives. Advisors provide strategic insight, extensive experience and practical solutions to help get the capital and tools a business needs to grow.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
17 |
47 |
62 |
| | % Change | -- |
176.5% |
31.9% |
| | Company-Owned | 0 | 0 | 0 |
| | % Change | -- |
-- |
-- |
| | Total |
17 |
47 |
62 |
| | % Change | -- |
176.5% |
31.9% |
| | Franchised as % of Total | 100.00% | 100.00% | 100.00% |
Investment Required
The fee for a for a Compound Profit franchise is $34,000 for the first 15,000 businesses, plus $2.25 for each additional business.
Compound Profit provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$34,000 |
$34,000 |
| |
Furniture, Fixtures, Equipment, Computer System |
$1,000 |
$3,500 |
| |
Insurance |
$1,000 |
$1,500 |
| |
Executive Suite Base Rent (3 months) |
$2,400 |
$3,000 |
| |
Security Deposits, Utility Deposits, Business Licenses, and Other Prepaid Expenses |
$900 |
$1,500 |
| |
Initial Supply of Promotional Materials |
$750 |
$1,500 |
| |
Initial Training Tuition Fee |
$5,000 |
$5,000 |
| |
Travel and Living Costs While Training |
$2,000 |
$3,000 |
| |
Professional Fees |
$1,500 |
$2,500 |
| |
Additional Funds (3 months) |
$15,000 |
$30,000 |
| |
Total Investment |
$63,550 |
$85,500 |
On-going Expenses
Compound Profit franchisees pay a monthly royalty fee of 8% of gross revenue, tuition for the third and each additional person to attend initial training (not to exceed $2,500 per person), promotion and marketing fees, software license fees, and others.
Franchisee Satisfaction
A critical component of the due diligence process is that you, as a prospective franchisee, have a strong sense of existing franchisee satisfaction. You can click here to download direct quotes from franchisees about their experience with Compound Profit, taken from a recent independent survey of Compound Profit's existing franchisees conducted by the Franchise Research Institute. You can also click here to download direct quotes from franchisees about their experience with Compound Profit, taken from the same survey. Please note that, in order to ensure that the comments were candid (both good and bad), franchisee names were intentionally withheld from the report provided to the franchisor.
How do you rate Compound Profit in terms of: |
Rating* |
|
|
My franchisor and I are committed to a positive, long term relationship |
96% |
|
|
My franchisor understands that if I am successful they will be successful. |
96% |
|
|
How would you grade the ongoing training and support supplied by your franchisor? |
95% |
I am able to communicate directly and effectively with senior management. |
96% |
|
|
* Independent Audit of Existing Franchisees Who Rated Compound Profit as Excellent, Very Good, or Good |
What You Get–Training and Support
Before the franchisee opens the franchised business, Compound Profit will provide a copy of the company manual, as well as an extensive initial training program. Our advertising program for the services provided by our franchisees currently consists of online promotions, postcard distribution, letter distribution, advertisements in national publications, and promotional brochures for dissemination through networking at the local, regional, and national level. Franchise owners will be trained on all of the Compound Profit products and services and will have the support of our expert fulfillment team.
After the opening, Compound Profit will loan additions and supplements to the manual as they become available, as well as information and training with respect to each of the products and
services, and general marketing and business development support.
Territory
Compound Profit does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Hottest New Franchises publication.
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