Woodcraft
Woodcraft Supply, LLC is one of the nation’s oldest and largest suppliers of quality woodworking tools and supplies. After more than 80 years, the Woodcraft name is more recognizable than at any other time in its history. Woodcraft customers have come to depend on the variety, the educational opportunities, and the product quality that they can only find at a Woodcraft retail store.
Woodcraft is perfect for franchisees who have a passion for working with wood and want to have their own business. The Woodcraft brand carries with it a reputation for quality that cannot be found anywhere else in the woodworking field, providing a large advantage for any franchisee.
| |
Operating Units (in the U.S. and its Territories) |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
84 |
82 |
79 |
| | % Change | -- |
-2.4% |
-3.7% |
| | Company-Owned |
4 |
4 |
4 |
| | % Change | -- |
0.0% |
0.0% |
| | Total |
88 |
86 |
83 |
| | % Change | -- |
-2.3% |
-3.5% |
| | Franchised as % of Total |
95.5% |
95.4% |
95.2% |
Investment Required
The fee for a Woodcraft franchise is $50,000.
Woodcraft 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 |
$25,000 |
$50,000 |
| |
Computer System Support Fee |
$1,525 |
$2,125 |
| |
First Month’s Rent |
$0 |
$10,000 |
| |
Security Deposits |
$9,000 |
$10,000 |
| |
Initial Inventory |
$265,000 |
$280,000 |
| |
Leashold Improvements |
$20,000 |
$50,000 |
| |
Furniture and Fixtures |
$70,000 |
$80,000 |
| |
Insurance |
$3,000 |
$10,000 |
| |
Expenses While Training |
$1,000 |
$3,000 |
| |
Grand Opening Advertising |
$25,000 |
$25,000 |
| |
Signage |
$6,000 |
$9,000 |
| |
Office Equipment & Supplies |
$24,000 |
$26,000 |
| |
Additional Funds (3 Months) |
$50,000 |
$75,000 |
| |
Total Initial Investment |
$499,525 |
$630,125 |
Ongoing Expenses
Woodcraft franchisees pay a royalty fee of 5% of gross revenues each week, marketing contribution ranging from 1% to 1.5% of gross revenues and a local advertising fee ranging from 4% to 5% monthly. Additional fees include an advertising cooperative fee.
What You Get—Training and Support
Woodcraft offers franchisees support in site selection, lease/purchase negotiations, decor and design, marketing and promotion and a web presence. Franchisees are provided with comprehensive training at Woodcraft headquarters, and then additional training at the store site immediately prior to and during commencement of operations. Woodcraft field consultants continue to visit franchise locations on a periodic basis to review operations and answer questions.
Support includes marketing advice on how to reach out to core customers as well as prospects. The Woodcraft catalogue, the web page for each franchise location, and the customer e-newsletter system are provided as marketing tools.
Territory
Woodcraft grants 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 2011 Edition of Bond’s Top 100 Franchises publication.
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