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Below is an in-depth analysis and side-by-side comparison of KCS Applications vs The Gutter Guys including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $15,500 | $91,700 |
Franchise Fee | $15,000 | $15,000 |
Royalty Fee | $350/yr. | 5% |
Advertising Fee | - | - |
Year Founded | 1992 | 1988 |
Year Franchised | 1994 | 2000 |
Term Of Agreement | 3 years | 10 years |
Term Of Agreement | 3 years | 10 years |
Renewal Fee | - | 25% of franchise 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 | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/Yes |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Meetings, Internet, Field operations/evaluations, Purchasing cooperatives | Newsletter, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives |
Marketing | - | Co-op advertising, Ad slicks, Regional advertising |
Operations |
Franchise can be run from home. 1% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Franchise can be run from home. 10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 7 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
Started in 1992, KCS Applications Inc. specializes in acrylic asphalt sealing. Based in Hastings, New York, it began franchising two years later.
The Gutter Guys was founded by Michael Williams in 1988. Michael had been working in the restaurant and hospitality business for the previous fifteen years and needed gutters and downspouts on his new home. Amazed at the total lack of professionalism in the gutter companies he encountered while getting gutter installation estimates, he decided to start The Gutter Guys. Using his extensive knowledge of and passion for customer service, Michael's company now serves more than 300,000 happy customers throughout four mid-Atlantic states: Delaware, Maryland, New Jersey and Pennsylvania.
Not only did Michael develop the recipe to satisfy his customers, he also found the right recipe to recruit and retain quality employees. While discussing how to utilize and reward skilled employees with his business advisor and CPA Chuck Johnson, the idea of franchising came up. Not franchising in the normal sense, but as a way to expand the geographic area the business served and give employees an opportunity to become self employed while remaining with The Gutter Guys.
Chuck was so instrumental in helping to develop a system to give The Gutter Guys' employees a chance to become franchise owners that he was invited to join the company. Chuck accepted and sold his well-established accounting practice to join The Gutters Guys full time. Since that time, we have helped twelve of our employees become self employed franchisees of The Gutter Guys.