About Patriot Pipeline Franchise
Patriot Pipeline is a franchise system offering residential and commercial underground utility installation services.
Franchisees operate businesses that provide installation and repairs of sewer systems, water pipelines, storm drain systems, storm water retention systems, and dry utilities.
Their target customers include residential and commercial property owners, developers, builders, and government agencies seeking underground utility installation services.
Patriot Pipeline Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,900 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of monthly Gross Sales (minimum local marketing) plus 1% of monthly Gross Sales (Brand Development Fund, subject to increase up to 2%) | National brand fund |
| Total Investment Range | $365,900 – $557,900 | Includes build-out, inventory, working capital |
The investment range of $366K–$558K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Sales) and marketing fee (1% of monthly Gross Sales (minimum local marketing) plus 1% of monthly Gross Sales (Brand Development Fund, subject to increase up to 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,900 | $49,900 |
| Crew Truck (2) | $52,500 | $90,000 |
| Tools | $15,000 | $30,000 |
| 18K Excavator (3) | $100,000 | $150,000 |
| Skid Steer | $50,000 | $70,000 |
| Water Trailer | $8,500 | $15,000 |
| Vehicle & Equipment Wraps/Branding | $5,000 | $10,000 |
| Uniforms & Safety Gear | $1,000 | $3,000 |
| Security Deposits | $0 | $4,000 |
| Leasehold Improvements, Construction and/or Remodeling | $0 | $3,000 |
| Computer System | $5,000 | $10,000 |
| Opening Inventory, Office Equipment and Supplies | $3,000 | $5,000 |
| Grand Opening Advertising | $3,000 | $5,000 |
| Travel and Living Expenses while Training | $2,000 | $5,000 |
| Business Licenses & Permits | $2,000 | $5,000 |
| Professional Fees | $2,000 | $4,000 |
| Additional Funds – 3 Months | $45,000 | $70,000 |
| Insurance – 3 months | $10,000 | $15,000 |
| Microsite Set-Up Fee | $2,000 | $2,000 |
| Software Fees | $10,000 | $12,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current initial franchise fee, or $25,000, whichever is greater |
| Renewal Fee | 50% of then-current initial franchise fee, or $25,000, whichever is greater |
| Technology Fee | $500 set-up fee and approximately $150 per month |
| Audit Fee | Cost of examination plus related expenses if understatement of 2% or more is found |
| Late Charge | $100 per late submission |
| Interest Charge | 1.5% per month from due date |
| Insufficient Funds Fee | $50 per occurrence |
| Interim Management Fee | 10% of monthly Gross Sales plus travel expenses |
| Additional Training for New Personnel | $2,000 per person |
| Remedial Training | $500 per day plus travel expenses |
| Evaluation Fee | $500 |
| Confidential Operating Manual Replacement Fee | $100 |
| Advertising Cooperative | Pro-rata share of actual cooperative advertising costs |
| Liquidated Damages | Average Royalty Fee and Brand Development Fund Contributions for 12 months prior multiplied by lesser of 24 months or months remaining in term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 136 hours total (108 classroom + 28 on-the-job) |
| Classroom Training | 108 hours |
| On-the-Job Training | 28 hours |
| Training Location | Wildomar, California (classroom and field); Remote (Project Management and Pre-Opening Procedures) |
| Additional Training | Mandatory and/or optional additional training programs up to 10 days per year including annual convention. Remedial on-site training available at $500/day plus expenses. Opening assistance of up to 3 days on-site at no charge. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Defined by contiguous zip codes based on demographics, minimum households, geographic terrain and market potential |
| Description | Limited protected territory defined by zip codes. Franchisor will not open another outlet or grant rights within the territory while franchisee is not in default. However, franchisor reserves rights to sell through alternative distribution channels within the territory and to service national accounts. Franchisee may not use alternative distribution channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15 years (one additional term) |
| Renewal Fee | 50% of then-current initial franchise fee, or $25,000, whichever is greater |
| Renewal Conditions | Must be in full compliance, no more than 3 events of default during current term, provide written notice at least 6 months before end of term, execute new franchise agreement, pay successor agreement fee, repair/upgrade equipment to current specifications, execute general release, comply with current qualifications and training requirements |
| Transfer Fee | 50% of then-current initial franchise fee, or $25,000, whichever is greater |
| Transfer Conditions | Franchisor approval required; transferee must meet current standards, sign current franchise agreement, complete training; all amounts owed must be paid; general release required; franchisor has 30-day right of first refusal |
| Termination for Cause | Automatic termination for insolvency/bankruptcy; immediate termination without cure for falsifying reports, ceasing operations 5+ days, understating gross sales 2+ times, unauthorized transfer, felony conviction, 3+ defaults during term; 5-day cure period for payment defaults and other curable defaults |
| Non-Compete Period | 24 months after termination or expiration |
| Non-Compete Details | For 24 months after termination, franchisee may not participate in any underground utility installation business within 50 miles of former territory or any Patriot Pipeline outlet location, or divert customers to competitors |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee does not need to personally participate in direct operation but it is recommended. A general manager must directly operate the business and must complete the Initial Management Training Program. The general manager may be the franchisee or an approved appointee. |
| Required Suppliers | Franchisees must purchase all fixtures, furnishings, signs, equipment, inventory, uniforms, marketing materials, computer systems, certain software, and other supplies from approved suppliers or in accordance with franchisor specifications. Vehicles and construction equipment must be approved and wrapped to specifications. |
| Supply Restrictions | Franchisee must request written approval and pay a $500 evaluation fee to use unapproved suppliers. Franchisor approval required within 30 days or item is deemed unapproved. Franchisor may revoke supplier approval at any time. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 31, 2022, franchisor did not receive any revenue, rebates, discounts or other material consideration from suppliers; however, franchisor may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee any note, lease or obligation on franchisee's behalf. |
Patriot Pipeline Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Patriot Pipeline 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.
Patriot Pipeline System Growth
Patriot Pipeline currently operates 0 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 |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 1 states: CA
Franchisor Financials (Item 21)
Audited by CPA firm at 41880 Kalmia Ste. Ste 170, Murrieta, CA 92562 for year ending December 31.
Patriot Pipeline Franchise — FAQ
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