About Temporary Wall Systems Franchise
Temporary Wall Systems is a commercial services franchise specializing in the rental, installation, and servicing of modular containment systems for use inside hospitals, office buildings, retail centers, and other commercial facilities.
Franchising since 2021 under DSG Three, LLC, owners bid on and secure rental contracts using customized cloud based management software, then handle on site installation and removal of temporary walls and containment systems.
The initial franchise fee is $59,900.
Temporary Wall Systems Franchise Cost & Fees
Minimum Investment
$145K
Average Investment
$249K
Maximum Investment
$352K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $59,900 | One-time payment upon signing |
| Royalty Fee | The greater of: (i) eight percent (8%) of your Gross Revenue; or (ii) the Minimum Royalty Fee each month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Brand Fund Contribution: Currently one percent (1%) of Gross Revenue (can increase to three percent (3%)). Local Advertising Requirement: Minimum of $3,000 per month (can increase to $4,000), with a minimum of $1,500 per month paid to Franchisor as a Franchisor Directed Advertising Fee. | National brand fund |
| Total Investment Range | $145,447 – $352,497 | Includes build-out, inventory, working capital |
The investment range of $145K–$352K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of: (i) eight percent (8%) of your Gross Revenue; or (ii) the Minimum Royalty Fee each month) and marketing fee (Brand Fund Contribution: Currently one percent (1%) of Gross Revenue (can increase to three percent (3%)). Local Advertising Requirement: Minimum of $3,000 per month (can increase to $4,000), with a minimum of $1,500 per month paid to Franchisor as a Franchisor Directed Advertising Fee.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $59,900 | $69,900 |
| Franchisor Directed Advertising Fee Deposit | $3,000 | $3,000 |
| Initial Inventory | $50,000 | $150,000 |
| Travel Expenses to Training | $250 | $3,000 |
| Security Deposits | $0 | $500 |
| Rent | $0 | $500 |
| Office Furniture | $0 | $1,000 |
| Vehicle | $0 | $60,000 |
| Vehicle Enhancements and Vehicle Wrap | $3,000 | $6,000 |
| Tools and Equipment | $2,000 | $5,000 |
| Business Management and Technology System | $1,000 | $3,000 |
| Business Licenses | $0 | $300 |
| Technology Fee (3 Months) | $1,797 | $1,797 |
| Industry Certifications | $0 | $500 |
| Professional Fees | $500 | $2,000 |
| Insurance Deposit and Initial Premiums | $4,000 | $9,000 |
| Grand Opening Marketing | $5,000 | $7,000 |
| Additional Funds (3 Months) | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (the “Transfer Fee”) plus the cost of additional training where applicable. |
| Renewal Fee | $5,000 (the “Renewal Fee”) |
| Technology Fee | Currently $599 per month |
| Audit Fee | Our costs and expenses, including costs for an independent accountant and attorneys’ fees, any understated amounts, and related travel and living expenses. |
| Managed Services Desk Fee | Currently, $55 per month for franchisee and $20 per month for staff. |
| Call Center Fee | Up to four percent (4%) of your Gross Revenue each month (if implemented) |
| Late Fee and Interest | The lesser of: (i) one and one-half percent (1½%) per month (eighteen percent (18%) per annum); or (ii) the maximum interest rate allowed by law from the due date of payment. Plus $100 for each week a payment is paid after the due date. |
| Nonsufficient Funds Fee | The greater of one hundred dollars ($100) per occurrence, or the highest amount allowed by law. |
| Payment Service Fee | Up to four percent (4%) of total charge. |
| Initial Training Fee for Replacement or Additional Trainees | Currently, $0 per trainee for up to three (3) trainees. Currently, five hundred dollars ($500) per day (plus our travel and living expenses) for additional on-site training in your Designated Territory. |
| Additional Training Programs | Then-current fee, varies based on program, per employee or agent for each full or partial day (currently $500 per employee or agent, plus travel and living expenses). |
| In-Person Consulting Services | Currently $500 per employee or agent for each full or partial day, plus their travel and living expenses. |
| Temporary Designated Manager | Currently five hundred dollars ($500) per employee or agent for each full or partial day, plus their travel and living expenses. |
| Temporary Management | Then-current fee charged by us during the period of management, plus any direct out-of-pocket costs and expenses (up to ten percent (10%) of Gross Revenue). |
| Annual Conference Fee | Currently $1,000 for up to two (2) people to attend. $500 per additional attendee. |
| Product, Service, Supplier, and Service Provider Review | $1,000 alternative supplier fee/new product review fee, plus actual costs of inspection and testing. |
| Insurance | Cost of premium plus a $100 fee for our services in procuring the insurance. |
| Remodel/ Re-equip/ Refurbish Requirement | $25,000 |
| Relocation Fee | Actual costs and expenses of providing relocation assistance, plus a $250 administrative fee. |
| Taxes | Varies. |
| Reimbursement of Professional Fees and Expenses | Varies |
| Enforcement Expenses | Our actual cost of de-identifying your Franchised Business or complying with other post-term obligations on your behalf. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately five (5) days |
| Classroom Training | 30 Hours |
| On-the-Job Training | 2.5 Hours |
| Training Location | Our Home Office located at 107 Parr Drive, Huntersville, North Carolina and other location(s) designated by us near Charlotte, North Carolina |
| Additional Training | The franchisor may periodically conduct mandatory or optional training programs for required trainees and/or employees at its office or other designated locations. Mandatory training programs are tuition-free, but optional programs may incur a fee. Training can be in-person, recorded media, teleconference, videoconference, Internet, or webinar. Refresher or advanced training may be required annually. Remedial training may be assigned if quality standards are not maintained, with associated fees and expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | approximately 4,000 target buildings |
| Description | The Designated Territory consists of approximately 4,000 target buildings within specific land use categories (Hospitals, High Technology and Research, Medical Services, and Public Administration). The size may vary, and the Initial Franchise Fee increases for territories with more than 4,000 Target Buildings. Boundaries are defined by zip codes, streets, landmarks, or county lines, based on third-party population data. While the territory is protected from other TWS franchises, it is not exclusive, and the franchisor or its affiliates may compete through other channels or brands. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten (10) years |
| Renewal Term | One (1) successive ten (10)-year term. |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, the franchisee must provide written notice 12-18 months prior to expiration, demonstrate the right to operate at an approved location, complete all required updates to equipment/software/vehicles and refurbishments to premises, be in substantial compliance with all agreements, satisfy all monetary obligations, execute the then-current franchise agreement (which may have materially different terms), satisfy current training requirements, obtain all necessary licenses/permits, execute a general release, and pay a $5,000 Renewal Fee. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Any transfer requires prior written consent and a general release from the franchisor. Conditions for approval include: all monetary obligations to franchisor/affiliates/suppliers must be satisfied; all existing defaults must be cured; transferor and transferee must execute general releases; provision of purchase agreement and supporting documents; transferee must meet franchisor's educational, managerial, and business standards, possess good moral character, business reputation, credit rating, and adequate financial resources; transferee must execute current franchise agreement or assignment; transferee must complete training; transferor/principals/family must comply with post-termination provisions; transferee must obtain/maintain all permits/licenses; lessor must approve lease assignment (if applicable); transfer must comply with all laws; projects in progress must be continued; purchase price/terms must not be overly burdensome; transferee must receive FDD; franchisor's approval is not a waiver of claims; franchisor may disclose financial information; and franchisor may withhold consent based on circumstances. |
| Termination for Cause | Automatic termination occurs for voluntary or involuntary bankruptcy or loss of premises. Termination with notice and without opportunity to cure occurs for criminal acts, fraud, actions materially impairing goodwill, misrepresentation in franchise application, failure to complete training, repeated breaches, material breach of other agreements, misuse of proprietary marks/confidential information, disclosure of confidential information/trade secrets, violation of law/safety hazard, violation of non-compete, liens, insolvency, abandonment, unauthorized transfer, unauthorized products/services, unapproved purchases, misuse of proprietary software, failure to maintain insurance, failure to comply with government regulations, government actions, or anti-terrorist activities. Termination with 15 days' notice to cure occurs for nonpayment, failure to endorse checks, failure to maintain marketing materials/supplies, interruption of service, failure to supervise/staff adequately, quality control issues, or failure to procure/maintain licenses/permits. Any other default allows termination with 30 days' notice to cure. |
| Non-Compete Period | During the term of the Franchise Agreement and for a period of two (2) years after its expiration, transfer or termination. |
| Non-Compete Details | During the term, the franchisee, its owners, officers, directors, principals, and immediate family members may not directly or indirectly own, maintain, engage in, be employed by, lend money to, extend credit to, or have any interest in any competitive business within the Designated Territory or any other System franchisee's Designated Territory (with exceptions for ownership in a TWS franchise or less than 5% interest in publicly-traded companies). They also cannot solicit employees or customers for competitive purposes. Post-term, for two years, similar restrictions apply within the Designated Territory, a 25-mile radius of any other Franchised Business's Designated Territory, or a 25-mile radius of any System business operated by the franchisor or its affiliates (with similar exceptions). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or its principals) must devote personal full-time attention, skill, and best efforts to managing and operating the franchised business and promoting its products/services within the Designated Territory. Other non-competing businesses may be allowed on a case-by-case basis. A Designated Manager may be employed if approved by the franchisor and completes initial training. The business must always be staffed with at least one individual who has completed initial training. Designated Managers are not permitted other employment or business activities during the term. |
| Required Suppliers | Franchisees must purchase Initial Inventory, Business Management and Technology System, branded items, signage, marketing materials, computer equipment and software, insurance, and grand opening marketing from Approved Suppliers or in accordance with franchisor's standards and specifications. |
| Supply Restrictions | The franchisor reserves the right to require franchisees to purchase any items or services necessary for the business from an Approved Supplier, the franchisor, its affiliates, or designated vendors. Franchisees must offer only prescribed products and services and maintain sufficient inventory levels. Prior written authorization is required to offer any other products or services. |
| Franchisor Revenue from Suppliers | In 2022, the franchisor derived $854 (0.2% of total revenue) from franchisees’ required purchases and $4,326 (1% of total revenue) in rebates from suppliers. Affiliates derived no revenue from franchisees’ required purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to you. We do not guarantee your note, lease or other obligations. |
Temporary Wall Systems Franchise Earnings — Item 19
Temporary Wall Systems does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Temporary Wall Systems 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.
Temporary Wall Systems Litigation & Risk Flags
Clean Litigation RecordTemporary Wall Systems has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Temporary Wall Systems System Growth
Total Units
8
Franchised
8
Company-Owned
0
Temporary Wall Systems currently operates 8 franchised locations and 0 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 | 5 |
| 2021 | 0 | 0 | 5 |
| 2022 | 3 | 0 | 8 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$58K
Net Income
$-1,062,384
Total Assets
$1.8M
Audited by Davies, Goldstein & Associates CPA's PLLC for year ending December 31st.
Temporary Wall Systems Franchise — FAQ
The total investment to open a Temporary Wall Systems franchise ranges from $145,447 to $352,497, per their Franchise Disclosure Document. This includes the initial franchise fee of $59,900. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Temporary Wall Systems charges a royalty fee of The greater of: (i) eight percent (8%) of your Gross Revenue; or (ii) the Minimum Royalty Fee each month of gross sales, plus a Brand Fund Contribution: Currently one percent (1%) of Gross Revenue (can increase to three percent (3%)). Local Advertising Requirement: Minimum of $3,000 per month (can increase to $4,000), with a minimum of $1,500 per month paid to Franchisor as a Franchisor Directed Advertising Fee. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Temporary Wall Systems Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Temporary Wall Systems to ensure you have the most up-to-date version.
Temporary Wall Systems does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Temporary Wall Systems has been franchising since 2021. The FDD shows an investment range of $145,447-$352,497, a The greater of: (i) eight percent (8%) of your Gross Revenue; or (ii) the Minimum Royalty Fee each month royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $59,900 and the total investment ranges from $145,447 to $352,497 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Temporary Wall Systems and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Temporary Wall Systems or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com