Signing out of account, Standby...
- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$359K - $904K
- Units as of 2015
About DirectBuy Inc.
- Services (Other)
- Related Categories
- Miscellaneous Services, Miscellaneous Retail Businesses
- Parent Company
- United Consumers Club Inc.
- Mike Bornhorst, CEO
- Corporate Address
8450 Broadway, P.O. Box 13006
Merrillville, IN 46411-3006
- Franchising Since
- 1972 (51 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees worldwide.
This company is offering new franchisees in the following US states:
- # of Units
- 52 (as of 2015)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a DirectBuy Inc. franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $359,000 - $904,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $100,000 - $200,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $100,000 - $200,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 12 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- DirectBuy Inc. offers in-house financing to cover the following: franchise fee
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 5 weeks
- Classroom Training
- 4 weeks
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineOnline SupportField Operations
- Marketing Support
Co-op AdvertisingAd TemplatesNational Media
Additional details about running this franchise.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like DirectBuy Inc.? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse franchises that are similar to DirectBuy Inc..
UPS Store, The
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
How to Bring Your Franchise to the Next Level With Marketing Automation
With the impacts of inflation and associated costs of running a business, automation is a powerful solution for streamlining a positive guest experience and overall marketing.
'The Worst Nightmare': One Cold Stone Creamery Location Lost All of Its Inventory — and the Meltdown Went Viral
Employees had to pour the ruined product into garbage cans.
I Was the CEO of Arby's. I'm Auctioning Off My Texas Mansion with a Lowly $2.5 Million Starting Bid Because My Wife and I Are Getting Older and Neither of Us Wants to Live Here Alone.
The home theater replicates the old Marbro Theatre in Chicago.
Everything To Know About Financing Your Franchise
This is it. You're ready to start your franchise journey. Only one thing is left: Finding the money you need.
4 Essentials for Selecting the Perfect Business Real Estate
Marketing for retail, restaurant or other site-critical companies should always begin with meticulously chosen sites: Time-tested ways of picking a winner.
Want to Become a Franchisee? Run Through This Checklist First.
From financing to legal review, we'll cover all the basics before you officially become a franchisee.