If you are contemplating Filta ownership, you probably have some questions regarding cost and potential returns on your investment into the business. It is important to have a good idea of what you can expect from your investment before you even consider committing yourself. Let’s take a look at some of the realities of Filta ownership and answer a few common questions that potential franchisees often ask.
What Are the Associated Costs?
The initial Franchising Fee for a single unit franchise covering one territory is $31,000 due at the time you submit your Letter of Intent. Once you are approved for ownership, you purchase an Opening Package for $43,500. This package includes all of the equipment and stock to get your business started, and also covers your 2 weeks of classroom and in-field training. There is an additional $5,000 marketing fund fee, as well, that covers the cost of your Business Development Manager and helps support the costs of marketing your Filta franchise. The total start-up cost of a single unit franchise comes out to $79,500. There is also an option to purchase a multi-unit franchise.
Over the life of your business, there are monthly fees, as with any franchise. The Filta Group charges an 8% monthly royalty fee, as well as a 2% advertising fee. There are also ongoing costs for intranet and Quickbook use ($46) and cartridge replacement costs ($408 per MFU). You are also responsible for supplying your own office space, covering your own insurance and equipment maintenance costs, providing your own gas and other travel expenses and other associated costs of conducting business.
What Will My Territory Be?
As a general rule of thumb, territories are structured around county lines. In order to ensure that your franchise has the ability to meet its full potential, territories are established to take into account the number of businesses in your area, population density and growth trends, and other contributing factors. Filta attempts to establish territorial boundaries to that each franchisee has at least 10 McDonalds franchises within his or her territory.
How Much Business Can I Expect?
Most Filta owners make between 6-8 service calls each day, though it is up to you how many calls you wish to make each day and how many days you wish to work each week. The average service call for the FiltaFry service takes between 45 minutes to an hour to complete. The FiltaCool service requires significantly less time to complete. FiltaCool filters take about 25 minutes to install initially, and only a few minutes to switch out every 3 months after that.
Drive times between calls depend on the size of your territory and the traffic density. Within the average territory, Filta technicians have the capacity to handle an average of 40-45 service calls each week.
How Much Do Filta Services Cost?
The average service call charge for FiltaFry filtration is $66.85 as stated by the 2009 Filta Franchise Disclosure Document. The recommended service charge is $50 for the first 50 pounds of oil filtered, with an added charge of $0.35 per additional pound beyond the first 50. FiltaCool filters are rented at a cost of $12 per month for each filter. The average customer uses 6 filters.