About Frost Shades Franchise
Frost Shades is a window tinting franchise providing residential and commercial window tinting products, installation services, and related solutions.
Franchising since 2020, the brand offers a mobile service model where owners travel to customer locations to perform installations, eliminating the need for a traditional retail storefront.
The initial franchise fee is $30,000 for a single territory or $60,000 for a double territory.
Frost Shades Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | Greater of 7% of Gross Sales or Minimum Monthly Royalty Fees of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Brand Development Fund: Up to 2% of Gross Sales, currently not assessed. Franchisee Directed Local Marketing: Greater of 6% of Gross Sales or Minimum Monthly Local Marketing Requirement. | National brand fund |
| Total Investment Range | $55,550 – $89,200 | Includes build-out, inventory, working capital |
The investment range of $56K–$89K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of 7% of Gross Sales or Minimum Monthly Royalty Fees) and marketing fee (Brand Development Fund: Up to 2% of Gross Sales, currently not assessed. Franchisee Directed Local Marketing: Greater of 6% of Gross Sales or Minimum Monthly Local Marketing Requirement.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Construction and Leasehold Improvements | $200 | $2,000 |
| Equipment | $2,000 | $3,000 |
| Initial Inventory | $2,000 | $5,000 |
| Computer, Software and Point of Sales System | $600 | $1,100 |
| Service Vehicle | $1,500 | $7,500 |
| Start-Up Marketing – 3 Months | $5,500 | $5,500 |
| Signage | $2,000 | $3,000 |
| Insurance Deposits – 3 Months | $200 | $1,200 |
| Travel for Initial Training | $2,000 | $6,000 |
| Professional Fees | $1,500 | $3,000 |
| Licenses and Permits | $150 | $500 |
| Printing, Stationery and Office Supplies | $1,000 | $2,000 |
| Additional Funds – 3 months | $10,000 | $20,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers |
| Renewal Fee | 5% of our then current initial franchise fee |
| Technology Fee | Currently $250 per month |
| Audit Fee | Cost of audit plus expensed incurred |
| Contact Center | Up to 3% of monthly Gross Sales, currently not assessed |
| Customer Service and Refunds | Varies under the circumstances |
| Annual Conference Attendance | Our then current conference fee, but not greater than $1,500. Currently not assessed. |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Supplemental Training | Our then current daily fee per trainer, plus our expenses. Current rate is $250 per day |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence plus costs |
| Payment Non-Compliance | $150 per occurrence |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Interest | 18% per annum from due date |
| Quality Assurance Audit | Actual costs incurred by us |
| Collections | Actual fees, costs, and expenses |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 day period |
| Classroom Training | 16 |
| On-the-Job Training | 9 |
| Training Location | Nashville, Tennessee |
| Additional Training | Additional Initial Training Fee of $500 per additional person attending the Training Program. Supplemental training may be required at a rate of $250 per trainer per day plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Single Territory: 250,000 to 350,000 people; Double Territory: 750,000 to 1,000,000 people |
| Description | A geographic area that includes a population of approximately 250,000 to 350,000 people for a Single Territory, or 750,000 to 1,000,000 people for a Double Territory. Population is determined based on raw data without regard to demographics or age. You will not receive an exclusive territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 consecutive years |
| Renewal Term | Up to two additional 5 year renewal terms, for a maximum total of 10 years |
| Renewal Fee | 5% of our then current initial franchise fee |
| Renewal Conditions | Compliance with Franchise Agreement terms, 180 days prior written notice, signing current franchise agreement and related ancillary agreements, signing a general release, paying renewal fee, and completing additional training if required. |
| Transfer Fee | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers |
| Transfer Conditions | 30 days prior written notice, satisfaction of all accrued monetary and outstanding obligations, transferee bound by agreement terms, transferee's owners personally guarantee, franchisee and owners execute general release, transferee upgrades administrative office if applicable, transferee and managers complete training, franchisor approval of transfer terms. |
| Termination for Cause | Franchisor can terminate for various defaults, including failure to pay fees, non-compliance with operational standards, abandonment, intentional misrepresentation, or violation of Anti-Terrorism Laws. Some defaults have a 10-day cure period, others a 30-day cure period, and some result in automatic termination without cure. |
| Non-Compete Period | 24 months after the expiration or termination of the Franchise Agreement |
| Non-Compete Details | Prohibits involvement, ownership, or interest in any competing business within your Operating Territory, a 25-mile radius of your Operating Territory, or the operating territory of any other Frost Shades Business. Also requires compliance with confidentiality, non-disclosure, and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you or, if you are a Corporate Entity, that your managing shareholder or partner be personally responsible for the daily management and supervision of the Franchised Business (the “Managing Owner”). The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless management functions are delegated to an authorized Operating Manager who completes training and meets criteria. |
| Required Suppliers | You may only offer and sell the Approved Services and Products that we designate and you may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing. You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers. |
| Supply Restrictions | We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services. We may designate ourselves or a third party as exclusive supplier irrespective of the existence of competing suppliers. |
| Franchisor Revenue from Suppliers | As of December 31, 2021, we have not received revenue from suppliers of franchisee purchases of source restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
Frost Shades Franchise Earnings — Item 19
Frost Shades does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Frost Shades Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Frost Shades System Growth
Frost Shades currently operates 18 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 5 | 0 | 5 |
| 2021 | 14 | 0 | 19 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 22 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Omar Alnuaimi, CPA for year ending December 31, 2021.
Frost Shades Franchise — FAQ
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