According to Service Team of Professtionals, Inc. public Franchise Disclosure Document, the total investment necessary to begin the RD's sales activity requires you pay an Initial Franchise Fee based on two cents per capita in your RD territory. And additional expense ranging from $14,000 to $28,000 provides for office establishment, licensing and other related costs associated with operating the RD's sales activity. The per capita fee of two cents comprises the initial fee that must be paid to Service Team of Professtionals, Inc. The cost of office establishment, licencing, etc are over and above the initial franchise fee (the per capita fee) due STOP. These costs are variable based on the determination of the RD and are expended at the descrection of the RD. Service Team of Professtionals, Inc. do not offer financing for your initial fee.

According to the STOP Franchise Website:

Today, the franchise system is strong and growing, with new Franchisees buying up territories throughout North America. STOP franchisees have helped an estimated 167,000 home and business owners recover from a range of water, fire, indoor environmental issues and disasters since the beginning.

The STOP franchise system is primed to grow significantly in the coming years and we are humbled and proud of the successes we have helped create throughout our family of STOP Franchise owners.

JOIN THE PROFITABLE, RECESSION-RESISTANT INSURANCE RESTORATION INDUSTRY WITH DELTA DISASTER SERVICES


Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.

Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “Delta Disaster Services ”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.

As a Delta Disaster Services franchisee you get access to proprietary scalable processes to meet second year gross minimums of $1million, while servicing both commercial and residential customers with water, fire, and environmental losses.

Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.

STOP VS Delta Comparison

  Delta Disaster, Inc. STOP
Number of locations (US) 8 33
Startup Costs $162,755 - $332,220 $78,400 - $138,500
Territories open open
Initial Franchise Fee $45,000 $32,000
Supplies, Equipment and Inventory Purchase: $27,600 - $42,500 $15,000 - $25,000
Vehicle Lease: $400 - $700 / month Purchase: $0 - $25,000 
Additional Funds (Working Capital) $52,755 - $65,000 (3 Months) $500 - $1,000
STOP doesn't reconstruct anything and only limited areas are covered.

DELTA DISASTER FEES

Royalty

For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty. 

For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.

Paid by electronic funds transfer on the sixth day of each month for the preceding month.

Technology Support Fee

$299, payable monthly by electronic funds transfer.

The purpose of the technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.

Warranty Fund Contribution

1% of Gross Revenue, Payable monthly by electronic funds transfer.

Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers. The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual. We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.

Individual Advertising Expense

2% of Gross Revenue, payable monthly.

Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.

National Marketing Fee

1% of Gross Revenue, Payable monthly by electronic funds transfer.

You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% of Gross Revenue for the previous month. If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.

Successor Franchise Fee

10% ofthe then-current Initial Franchise Fee, payable at the time you sign the Successor Franchise Agreement.

Estimating Software

Xactimate software SI 13 to $160 per month per license.

In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business. This fee could decrease as your number of software licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.

Software License Fees

Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.

You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation of your Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.

Technology Maintenance

$500-$1,500 per computer workstation

We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.

STOP DISASTER FEES

Royalty

Based on two cents per capita m the RD territory. It has to be paid upon execution of Franchise Agreement and/or at least 21 days before training.

Equipment and Supplies

You will need certain equipment and supplies if you are a new business, to include office furnishing, computer/sand other office machines as you determine necessary. This does not include the purchase of a vehicle You may choose to work from home You should do your own local research related to the cost of office space, either for rent or lease.

Additional Franchises

You may purchase additional RD franchises after you have operated your business for at least twelve months and we determine, by your performance and staffing abilities, that you have the capability to aggressively and profitably operate another RD Franchise.

Additional franchises will be granted with an annual fee based on the then effective franchise pricing guidelines. A new Franchise Agreement for the additional franchise must be executed The RD may assign a manager for the additional RD franchise and that person must complete the RD Initial Training Program A waiver to attend the RD Imtial Training Program may be given by STOP based on the determination that the assigned manager has sufficient business and management experience, and an awareness of the property restoration industry, to effectively operate the RD franchise business m the territory. The assigned manager of the addrtional franchise must complete the STOP Initial Training Program. You will be responsible for your manager's travel, lodging, and food expenses related to this training ($400 - $4,000).

Additional Funds

If you are planning on hiring admimstrative staff, sales and marketing personnel, or other positions as you determinate, your pre-determined positions will be compensated on the schedule of remuneration you develop. STOP will advise on the compensation levels, and benefits, that you plan on operating with. However, you will have the final determmation of staff, vehicles, office space, travel and field expenses, along with your knowledge of competitive wages in your RD territory.

Initial Franchise Fee

You will pay STOP a franchise fee 21 days before attending RD Initial Training or when you sign the Franchise Agreement (the "Initial Franchise Fee") The Initial fee is not uniform to all buyers of an RD The price per RD territory vanes due to population in the RD's territory The RD will pay two cents per capita on qualified population. Population will be detenrmined by US Census and other up-to-date population data for the RD territory Certain areas in a region that may not be able to sustain a restoration franchise may be excluded from qualified population count. STOP does not offer financing for this Initial Franchise Fee .

The Initial Franchise Fee ts refundable in full, less any expenses incurred by STOP, only if you (or the principal owner, if the franchise is a business entity) dies or becomes permanently disabled before Initial training begins The Initial Franchise Fee  is refundable, less $25,000, if you fail to start the Initial training within sixty days after the Initial Franchise Fee is paid and/or Agreement is signed if we or you elect to terminate the agreement. 

Equipment and Supplies

You will need certain supplies and selected equipment, STOP stationery, business cards, and promotional matenal than can be purchased from STOP General office supplies, furnishings, in addition to computers and other office machines are needed The type of equipment you purchase is at your sole discretion.

Franchisor's Revenue

STOP does not have any designated suppliers or approved suppliers for goods, services or real estate relating to the RD' s business. STOP does not require any supplies be purchased from STOP. However, STOP does produce and/or offer certain promotional brochures, promotional materials, and vehicle/building signs. These items are purchased by STOP in bulk (often at discounted bulk rates) and sold to their franchisees at fair prices. STOP did not offer RD franchises last year. Therefore, none of these materials were sold to RD's.