DirectBuy vs RetroTax Franchise Comparison

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

Start-Up Costs and Fees
 
DirectBuy Franchise
RetroTax Franchise
Investment $359,000 - $904,000$33,450 - $46,000
Franchise Fee $75,000$30,000
Royalty Fee 22%-
Advertising Fee 3%-
Year Founded 1971-
Year Franchised 1972-
Term Of Agreement 12 years-
Term Of Agreement 12 years-
Renewal Fee --


Business Experience Requirements
 
DirectBuy Franchise
RetroTax Franchise
Experience
  • Marketing skills
    		•  * Single-unit franchisees must live in proximity to the market area that they will service * Possess a minimum net worth of $150K, with $45K in liquidity * Strong interpersonal skills and/or sales experience at the C-level a strong plus

    Financing Options
     
    DirectBuy Franchise
    RetroTax Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees Yes/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/NoNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    DirectBuy Franchise
    RetroTax Franchise
    Training At regional meetingsInitial Training consists of a combined 40 hours of classroom and in-field training. You'll learn the features and benefits of various tax credit programs, become familiar with our internal operations, and train with experienced field personnel.
    Support Newsletter, Meetings, Internet, Field operations/evaluationsOngoing Support is provided to all franchisees. Our primary goal is to help you build your client base and become better every day, as a successful RetroTax franchisee.
    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)

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    Expansion Plans
     
    DirectBuy Franchise
    RetroTax 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 RetroTax

    Established in 1996, RetroTax® helps businesses navigate complex legislation associated with finding and securing federal and state tax credits. These tax credits can be based on geographic regions in which your business operates, or on the demographic characteristics of your employees. In addition to finding and acting upon current and retroactive program eligibility, RetroTax® helps businesses establish policies and practices to create greater opportunities for receiving additional tax credits in the future.
    RetroTax is a full service administrator of federal and state incentive programs. These programs generate federal and state income tax credits that offset federal and state income tax liability. RetroTax uses a state-of-the-art proprietary software program to process your company's information to obtain federal and state tax credits.