DirectBuy vs Compound Profit Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of DirectBuy vs Compound Profit including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
DirectBuy Franchise
Compound Profit Franchise
Investment $359,000 - $904,000$25,000
Franchise Fee $75,000$15,000
Royalty Fee 22%6%
Advertising Fee 3%-
Year Founded 19712006
Year Franchised 19722006
Term Of Agreement 12 years-
Term Of Agreement 12 years-
Renewal Fee --


Business Experience Requirements
 
DirectBuy Franchise
Compound Profit Franchise
Experience
  • Marketing skills
    		• -

    Financing Options
     
    DirectBuy Franchise
    Compound Profit Franchise
      In-House/3rd PartyIn-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
     
    DirectBuy Franchise
    Compound Profit Franchise
    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
     
    DirectBuy Franchise
    Compound Profit Franchise
    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.

    About Compound Profit

    Compound Profit provides working capital and equipment to companies, while its "Profit Advisors” simultaneously coach clients on how to create credit assets, increase earnings, and decrease losses and risk. With decades of experience in finance and business, Compound Profit’s team empowers clients with the know-how to make their companies profitable and healthy. This approach stabilizes small- to medium-sized ventures and positions them for increased funding opportunities. Launched in Texas, Compound Profit has expanded nationwide and operates under a successful franchise model. With its national expansion, Compound Profit is growing to 300 franchised locations across the United States and will employ 6,000 account executives.
     
    Owning a Compound Profit franchise is like owning several franchises in one because you provide multiple fundamental business services to your clients.