How to Read Mold Medics' 2023 FDD
How to Read Mold Medics' 2023 FDD

How to Read Mold Medics’ 2023 FDD

As a prospective franchise owner of Mold Medics, one of the most crucial documents you’ll encounter is the Franchise Disclosure Document (FDD). The FDD for 2023 is a comprehensive guide that provides essential insights into the brand, its operations and what you can expect as a franchise owner.

The FDD consists of 23 items, each covering a specific aspect of the franchise. Understanding each item can help you discern how well a particular franchise might fit your business goals and aspirations. Let’s delve into a few key items within a franchise disclosure document, and highlight some key takeaways and insights you can glean from them.

Item 1: The Franchisor, Its Predecessors and Affiliates – This section provides an overview of the franchisor’s business and the industry within which it operates. It’s essential for candidates to gauge the franchisor’s track record and experience in the industry before signing on with the brand.

  • Mold Medics Franchising LLC is a leading mold remediation franchise that specializes in providing comprehensive mold removal and prevention solutions under the Threshold Brands umbrella. With a commitment to ensuring safe and healthy living environments, Mold Medics has become a trusted name in the industry.

Item 2: Business Experience – This item details the business experience of the franchisor’s key executives and management team. The expertise and stability of the franchise leadership will be crucial for the long-term success of franchise owners.

Item 5: Initial Fees – This section outlines the initial fees that a franchise owner must pay to the franchisor. It will help prospective franchise owners understand the upfront financial commitment and determine whether or not it fits within their budget.

  • The initial franchise fee for Mold Medics is $49,900, paid in lump sum when franchise owners sign the agreement.

Item 6: Other Fees – This item details any other ongoing or recurring fees that the franchise owner must pay. Prospective franchise owners will need to ensure these fees align with their budget and the business model.

  • Some of the fees required include royalties, marketing funds, technology, training programs, call center, etc. 

Item 7: Initial Investment – This item outlines the various costs associated with starting a Mold Medics franchise, including fees, compliance with standards and policies, insurance, advertising and more. This section is perhaps the most crucial for prospective franchise owners to gather an in-depth understanding of the financial requirements.

  • The total investment necessary to begin operation of a Mold Medics franchise is $104,450 to $180,400. This includes $49,900 that must be paid to the Franchisor or its affiliate(s).

Item 10: Financing – This section discloses any financing arrangements offered by the franchisor. For those in need of assistance with start-up costs, this can be a crucial factor in the decision-making process.  

  • Mold Medics may offer financing of up to the full amount of the Initial Franchise Fee as disclosed in Item 5 to prospects who meet our qualifications, including creditworthiness. If you qualify and accept financing, you must sign the Promissory Note attached as Exhibit 6 to the Franchise Agreement. 

Item 12: Territory – This section details the territory rights granted to the franchise owner. Candidates will need to ensure the regulations align with their target market location.

  • A Mold Medics Territory will comprise an area that includes approximately 300,000 people at the time the Territory is defined, based on data from the most recent U.S. Census.

Item 19: Financial Performance Representations – This item provides a glimpse into the financial performance of existing franchises. This section is particularly important as it gives candidates a realistic expectation of the potential earnings and financial performance of the franchise. 

Item 20: Outlets and Franchise Owner Information – This item provides information on the number of franchised and company-owned outlets, as well as contact information for current franchise owners. This can give candidates valuable insight into the stability and growth potential of the franchise — if the brand has closed more locations than it has opened, that could be a cause for concern, for example.

Item 23: Receipt – This section includes a receipt acknowledging that the franchise owner received the FDD. Candidates have a minimum of 14 days after signing Item 23 to review the FDD before they are able to sign a franchise agreement.

Overall, the FDD is a treasure trove of information, and we’ve only scratched the surface. As a prospective franchise owner, it’s important to read the document in its entirety, understand the obligations and expectations and seek legal advice if needed. Remember, becoming a franchise owner is a significant decision, and the more informed you are, the better equipped you’ll be to make the right choice.

The start-up costs for starting a Mold Medics are $104,450 to $180,400, with an initial franchise fee of $49,900. For more information on franchising with Mold Medics, visit https://www.moldmedics.com/franchising.

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