DirectBuy vs The Franchise Group Franchise Comparison

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

Start-Up Costs and Fees

 
DirectBuy Franchise
The Franchise Group Franchise
Investment $359,000 - $904,000$91,500 - $102,000
Franchise Fee $75,000N/A
Royalty Fee 22%-
Advertising Fee 3%-
Year Founded 19712004
Year Franchised 19722004
Term Of Agreement 12 years-
Term Of Agreement 12 years-
Renewal Fee --


Business Experience Requirements

 
DirectBuy Franchise
The Franchise Group Franchise
Experience
  • Marketing skills
  • -

    Financing Options

     
    DirectBuy Franchise
    The Franchise Group 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
    The Franchise Group 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
    The Franchise Group 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 The Franchise Group

    The company specialises, using its unique 'Upside Down Franchising System', in helping small and medium sized enterprises (SME's) to franchise their businesses. In a short period of time the company has grown to become the largest franchise specialist in the UK with 17 Senior Franchise Partners, 60 Franchise Partners and over 50 clients. In November 2005 the company was approached by several individuals and companies from around the world asking for International Master Licences to use the 'Upside Down Franchising System' in their own country/territory. In response to these approaches The Franchise Group has formed a company called The Franchise Group International (TFGI) to offer International Master Licences to suitable individuals and organisations throughout the world. Market research shows that the franchise market in most of the western world and several emerging nations is growing steadily with no clear market leader within our specialisation. With this in mind we believe that our 'Upside Down Franchising System' can, as in the UK, be successfully implemented throughout the world, helping SME's to successfully transform their businesses into franchises, and in turn giving excellent financial returns to the Master Franchisee and his team. Taking into account the experience and enthusiasm of the management team, the excellent existing infrastructure, together with the currently successful business, the time is now perfect for TFG to expand its franchise network by offering Master Licences to suitably qualified individuals and organisations around the world.