DirectBuy Inc.

At a Glance

Products & Services: Consumer buying club

Number of Locations: 91

Total Investment: $444K - $825K

Founded: 1971

Began Franchising: 1972

About DirectBuy Inc.

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.

Franchise Units

Year U.S. Canadian International Company Owned
2014 64 16 0 11
2013 78 15 0 14
2012 85 14 0 8
2011 102 19 0 11
2010 123 19 0 10
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $444,000 - $825,000
Franchise Fee: $75,000
Ongoing Royalty Fee: 22%
Term of Franchise Agreement: 12 years, renewable
Veteran Incentives: 20% off franchise fee
Financial Requirements
Net Worth: $500,000
Liquid Cash Available: $100,000
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).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

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,

Franchise Ranking History

Franchise 500®: #429 (2011), #221 (2010),
America's Top Global: #169 (2010),