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DirectBuy Inc.

Consumer buying club

Background

Founded: 1971 Franchising since: 1972
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.
8450 Broadway, P.O. Box 13006
Merrillville, Indiana 46411-3006
Phone:
(800)454-0018/ (219)736-1100


Franchisor is a privately-held company with 330 employee(s); 6 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 131 20 0 12
2008 135 22 0 5
2007 121 21 0 1
2006 108 20 0 1
2005 97 19 0 2

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Pennsylvania, Rhode island, South carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Outside the U.S.: Canada

Exclusive territories available.
Territory size: 300,000 population

Costs and Fees

Total investment: $552K-2.2M
Franchise fee: $75K/155K
Ongoing royalty fee: 22%
Term of agreement: 12 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No Yes

Qualifications
Net worth requirement: $500K
Cash liquidity requirement: $300K
Business Experience:
  • Marketing skills

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)

Training and Support

Training
  • Available at headquarters: 4 weeks
  • At franchisee's location: 5 weeks
  • At regional meetings

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Internet
  • Field operations/evaluations

Marketing Support
  • Co-op advertising
  • Ad slicks
  • National media

Rankings

Franchise 500® rank:
#209 (2009); #219 (2008); #186 (2007); #203 (2006); #263 (2005);

Ranked #1 in category in:
2006;

America's Top Global Franchises:
#160 (2009); #172 (2008); #144 (2007); #159 (2006); #167 (2005);


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