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Here’s the Real Cost of Opening a Top Ten Percent Franchise
For prospective franchisees, the cost of starting a franchise can become higher than expected. But franchisees don’t have to pay too much to start a franchise. And if you’re looking for a business to franchise without leaving the comfort of your home, you can invest in Top Ten Percent. But how much does a Top Ten Percent franchise cost?
In this article, learn more about Top Ten Percent, other franchise information, and the franchise cost.
Top Ten Percent Franchise Overview
The company started in 2011 when Jerry Clum, the founder, was fed up with his experience dealing with some businesses. He searched for quality goods and services, but the current selection of review sites or listings couldn’t weed out the bad businesses from the best ones. So, he started Top Ten Percent in 2012. But it wasn’t until 2014 that Top Ten Percent began franchising their business.
It appears that the competitors of Top Ten Percent are Groupon, Yelp, and Angie’s List combined.
Based on their Franchise Disclosure Document, they have units in these states:
- Colorado
- Pennsylvania
- South Carolina
How does Top Ten Percent Work?
It’s a membership-driven community, allowing consumers to nominate businesses that deserve to be part of the program. A few months after they launched Top Ten Percent, the community grew to 12,000 consumers. Consumers can find businesses in any industry, such as automotive, home repair, dining, and more.
Consumers or franchisees can submit a business at no cost to nominate as part of the program. Then, Top Ten Percent will evaluate the business if they’re a great fit for the program. Franchisees also get to assess the business if it meets the Top Ten Percent standards. And once approved, consumers can view information about the business. Plus, businesses would get more visibility.
One of the reasons some franchisees want to consider investing in Top Ten Percent is the fees businesses pay while in the program. Other than that, due to its set-up, it has low start-up costs and overhead, which makes it an attractive option for franchisees. For more information about the Top Ten franchise cost, read more on it below. But before we get to that, check out other pertinent franchise information before you get started.
Training
TTP Franchise Inc. (the franchisor) requires franchisees to complete a training program 15 days before the actual operation’s date as set in the Franchise Agreement. The franchisor may even conduct other training programs. Plus, an Area Representative may hold field training as well.
Territory and Obligations
Once the franchisor and franchisee finalize the Franchise Agreement, the franchisor will grant a protected territory to the franchisee. The franchisor defines a territory depending on the number of franchisees in a specific area. They do this by pointing out the following variables:
- Number of businesses in the territory
- Zip Codes specified in the Franchise Agreement
Once they have those figures, they will divide by 1,500. It will appear that there’s one franchisee per every 1500 businesses in the area.
Since the Top Ten Percent franchise doesn’t require an actual office, it’s expected there may only be a few employees working for the franchise. And there’s no need for a supervisor on any premises. If franchisees have a capital of $10,000, they can hire a Business Recognition Consultant. The consultant can do fieldwork for the franchisee.
Franchisees should sell only products and services that the franchisor mandates them. If the franchisor makes a change in any product or service they’re selling, the franchisee should follow that. Other things to follow are the types of credit cards allowed and compliance with regulations stated in the manual.
All franchisees will have an initial 5-year franchise term. However, if the franchisee wants to renew, the franchisor can give an additional four 5-year terms.
Top Ten Percent Franchise Cost
Your Investments
An estimated Top Ten Percent franchise cost ranges from $17,958 to $26,836. But there are other costs such as set-up fees, listing fees, and renewal fees.
The franchisor doesn’t grant any financial assistance. However, they can refer franchisees to loan experts or consultants that can provide them loans through the Small Business Administration. However, TTP Franchise Inc. has a wide range of services to help franchisees acquire funds for loans.
Check out the tables below to see the franchise cost and other fees to pay when investing in a Top Ten Percent franchise.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $12,900 | $12,900 |
| Insurance (Quarterly Installment) | $128 | $256 |
| Printed Literature, Crystal Awards, & Winner Decals | $995 | $1,495 |
| Digital Equipment | $500 | $1,500 |
| Software | $60 | $575 |
| Work Vehicle – Lease | $0 | $1,500 |
| Business Licenses and Sales Tax Deposits | $35 | $250 |
| Legal and Accounting Fees | $1,000 | $2,000 |
| Training Expenses | $840 | $1,360 |
| Additional Funds – Pre-opening and 1st 90 days (Working Capital) | $1,500 | $5,000 |
| ESTIMATED TOTAL | $17,958 | $26,836 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Set-up Fees | $12 one-time fee for each new VIP or Promo Business Member in the Territory. |
| Listing Fees | $19 per VIP Business Member or, beginning in the 6th month after the start date, a minimum monthly Listing Fee of $285, whichever is more |
| National Advertising Fund Contributions | Up to 3% of Gross Revenues |
| Cost of Audit | The actual cost of performing the audit if the audit discloses an underpayment of 3% or more of the total Set- Up Fees, Listing Fees, national advertising fund contributions or any other ongoing payments franchisees are obligated to make to the franchisor for the period audited. |
| TTP Marketing Mailer Fee | The current rate per mailing piece, which is currently $1.85 per piece |
| Payment for Proprietary Products | The full purchase price of the product plus shipping costs and tax. |
| Renewal Fee | $2,500 |
| Transfer Fee | $2,500 |
| Annual Meeting Registration Fee | The franchisor will charge a registration fee of $395 for 2 attendees at the Top Ten Percent annual meeting. Additional attendees may attend for an additional registration fee of $195 each |
| Declined Payment Charge | $35 or our actual expense, whichever is more. |
| Administrative Processing Fee For Late Payment Or Report | $50 |
| New Products and/or Services | Not to exceed 8% of the Gross Revenues collected specifically for any new product or service that may be developed in the future |
| Attorney Fees and Costs | Varies depending on the amount incurred |
Did You Know?
- Top Ten Percent had its own app available for download on the App and Play Store. Consumers can use the app to find Top Ten Percent businesses to save money on several products and services.
- They were featured in Fortune 500 as “The Next Big Thing” in Mobile Marketing.
- According to BeTheBoss, before Jerry Clum established Top Ten Percent, he had a senior care franchise that had 700 franchise units in 40+ states.
- Businesses have seen growth since signing up for the Top Ten Percent program. They mentioned it was a much more affordable advertising platform. Plus, they’ve increased sales.
- Any business that may receive a negative rating has 14 days to rectify that. However, if the business fails to meet standards, they will get removed from the program.
Get more franchise information here at Franchise How!