Do It Best Franchise

Overview

Do it Best Corp. offers a unique franchising opportunity for entrepreneurs interested in entering or expanding their presence in the hardware, lumber, and building materials industry. This opportunity involves purchasing Common shares of Do it Best Corp., granting the franchisee certain rights, including the use of the "Do it Best" trademark, access to the company's vast inventory for resale, and participation in advertising campaigns​​.

Investment Information

• Initial Investment: The initial investment for standard membership is $4,400, which includes a $1,000 payment for 20 Common shares. For new retail hardware or lumber businesses, the total initial investment ranges from $440,400 to $1,128,400​​.
• Shares and Pricing: Each unit of 20 Common shares costs $1,000. No underwriting discounts or commissions apply. The proceeds from share sales directly benefit Do it Best Corp​​.
• Refund Policy: The $1,000 payment for Common shares is refundable upon member request. Historically, the company has always honored refund requests​​.

Business Model and Unique Selling Points

• Target Market: Do it Best Corp. primarily targets independent retailers in the hardware, lumber, and building materials sectors​​.
• No Dividends: The shares do not pay dividends. Instead, financial returns are tied to the company's operations and the gross profit from the member's purchases​​.
• Flexibility in Purchasing: Members are not obligated to buy exclusively from Do it Best Corp., but they are encouraged to promote and purchase a majority of their inventory from the company. Members meeting certain purchase thresholds may qualify for financial incentives through the Best Rewards/Enhanced Rebate program​​.

Member Services and Fees

• Member Services Fee: Includes a new member set-up kit, access to CORE®, and various other services for a non-refundable fee​​.
• LDP Program: An additional investment for qualifying members, including $15,500 for 310 Non-Voting Common shares and a $1,000 fee for 20 additional Common shares​​.
• Ongoing Fees: These include a basic member services fee of $75/month, delivery charges (varying based on weekly purchases), and an interest charge of 1.5% per month on overdue amounts. Enhanced and advanced service tiers are available for additional fees​​.

Key Considerations

• Dispute Resolution: Members must resolve disputes with the company through litigation in Indiana, which could lead to higher costs and potentially less favorable outcomes for out-of-state members​​.
• Franchise Complexity: Buying a Do it Best Corp. membership is a complex investment. Prospective members are advised to consult additional resources, such as the FTC's guide on franchising, for further understanding​​.

Estimated Initial Expenditure

• Cost Breakdown: Expenses include initial membership fees, equipment, signage, inventory, computer systems, and working capital​​.
• Variable Store Sizes: Costs vary based on store size, ranging from 2,000 to 80,000 square feet​​.

Key Takeaways

• Do it Best Corp. offers a franchise opportunity centered around hardware, lumber, and building materials, with an emphasis on flexibility and member-driven purchasing.
• The initial investment is substantial but provides access to a range of services and potential financial incentives.
• Members must be prepared for additional ongoing operational costs and should carefully consider the implications of the company's Indiana-based litigation policy.
• As with any franchise investment, thorough research and consultation with financial and legal advisors are strongly recommended.