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Updated RecentlyDirectBuy vs The Utility Company Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of DirectBuy vs The Utility Company including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $359,000 - $904,000 | $36,715 - $62,785 |
| Franchise Fee | $75,000 | N/A |
| Royalty Fee | 22% | - |
| Advertising Fee | 3% | - |
| Year Founded | 1971 | 2006 |
| Year Franchised | 1972 | 2006 |
| Term Of Agreement | 12 years | - |
| Term Of Agreement | 12 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | - | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | Yes/Yes | -/- |
| Start-up Costs | No/Yes | -/- |
| Equipment | No/Yes | -/- |
| Inventory | No/No | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | At regional meetings | - |
| Support | Newsletter, Meetings, Internet, Field operations/evaluations | - |
| Marketing | Co-op advertising, Ad slicks, National media | - |
| Operations |
1% of all franchisees own more than one unit Number of employees needed to run franchised unit: 9 - 12
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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| US Expansion | Yes | - |
| Canada Expansion | No | - |
| International Expansion | Yes | - |
Company Overviews
About DirectBuy
James L. Gagan founded UCC TotalHome in 1971 and began franchising the following year. Based in Merrillville, Indiana, the private company has over 90 locations throughout North America. DirectBuy began with a vision. It was a vision of liberating consumers from the high cost of retail buying; of allowing consumers to buy goods for their homes at manufacturer direct prices plus freight, handling and sales tax; of restoring to families the opportunity to buy the things they need and want at prices they could afford. That was over three decades ago. Today, the vision has materialized into an exceptional opportunity for DirectBuy franchise owners. We provide a proven, replicable system that allows them to realize the results and rewards of their business quickly. DirectBuy is the largest, most successful business of its kind in North America. For homeowners, remodelers and families in general, our centers are a very significant channel of alternative purchasing in North America.