Sears Hometown & Outlet Stores

Appliances, hardware

2023 Franchise 500 Rank: N/R Not ranked last year

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Initial investment: $116K - $2.2M

Units as of 2014: 333

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Company Overview

Sears offers two franchise concepts: Sears Outlet Stores and Sears Appliance & Hardware Stores. Franchising since 2009, the stores specialize in home appliances and hardware.

About Sears Hometown & Outlet Stores

Industry	Retail
Related Categories	Miscellaneous Retail Businesses
Founded	1990
Leadership	Bruce Johnson, CEO
Corporate Address	5500 Trillium Blvd., #500 Hoffman Estates, IL 60192
Social	Facebook, Twitter

Business Overview

Franchising Since	2009 (14 years)
# of employees at HQ	300
# of Units	333 (as of 2014)

Information for Franchisees

Here's what you need to know if you're interested in opening a Sears Hometown & Outlet Stores 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.	$25,000
Initial Investment 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.	$116,000 - $2,208,000
Net Worth Requirement 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.	$600,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$250,000
Term of Agreement 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.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	Sears Hometown & Outlet Stores offers in-house financing to cover the following: franchise fee, startup costs, equipment, inventory
Third Party Financing	Sears Hometown & Outlet Stores has relationships with third-party sources which offer financing to cover the following: startup costs, equipment

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	2 weeks
Classroom Training	1 week
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations
Marketing Support	National Media Regional Advertising

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
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.	No
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.	No
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.	No

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Franchise 500 Ranking History

Compare where Sears Hometown & Outlet Stores landed on this year's Franchise 500 Ranking versus previous years.

Stay up to date on the latest news and trends affecting the franchise industry.

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Updated: December 12th, 2022

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Sears Hometown & Outlet Stores

Company Overview

About Sears Hometown & Outlet Stores

Business Overview

Information for Franchisees

Financial Requirements & Ongoing Fees

Financing Options

Training & Support Offered

Operations

Franchise 500 Ranking History

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