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DirectBuy
 

DirectBuy offers consumers the unparalleled opportunity to buy merchandise at manufacturer's invoice cost. Our hundreds of thousands of members purchase directly from more than 700 manufacturers. No mark-up, no middleman, no kidding. DirectBuy franchise owners enroll members through our time-tested marketing system and service these members with the support of more than 300 specialists at the DirectBuy Corporate Support Center.

Franchisor Background

Year Established:

  1971

Franchising Since:

  1972

Operating Units:

Franchised Units:119 98.3%  
Company-Owned Units:2 1.7%  
 ______ _____  
Total Operating Units:121 100%  
 

Geographic Distribution:

U.S.:121 84.6% In 25 States
Canada:22 15.4% In 4 Canadian Provinces
International:0 0% In 0 Foreign Countries
 ______ _____  
Total:143 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. California14
2. Florida11
3. New York10

Registered in Following Registration States:

   California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:

Minimum Net Worth:$500K
Cash Investment:$105K-237K
Total Investment:$0K
Average Total Investment:$943K
 

Fees:

Initial Franchise Fee:$75K-155K
Average Franchise Fee:$115K
On-Going Royalty:22%
Average Royalty:22%
Advertising Fee:NA

Average Number of Employees:

   12 Full-time, 2 Part-time

Space Needs (in square footage):

   8,000-12,000

Preferred Sites:

  

Other Sites:

   Business Park

Encourage Conversions?

   Not Applicable

Earnings Claims Provided?

   No

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:Yes
Franchisee Association/Member:No
Size of Corporate Staff:500
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?Yes, Direct
 

Marketing Support:

Co-Op Advertising:No
National Advertising:Yes
Regional Advertising:No
Local Advertising:Yes
Marketing Materials:Ad Slicks, Brochures, Catalogs, Direct Mailers, Radio Ads, Site Signs, Television Ads, Trade Show Exhibits, Videos
Additional Services:In-house Marketing, Marketing Research, Newsletter, Online Extranet, Sales Strategies
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Included in Fees
Central Purchasing:Included in Fees
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Not Applicable
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Not Applicable
 

Training:

1. Merrillville, IN4 Weeks
2. Operating Franchise5 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:4
General Business Experience:4
Specific Industry Experience:1
Formal Education:3
Psychological Profile:1
Personal Interview(s):5

Minority Representation

Units Owned by Minorities:

African-American:N/A
Asian-American:N/A
Hispanic:N/A
Native American:N/A
Other:N/A
Specific Minority:N/A

Terms of Contract

Term of Initial Contract:12 Year(s)
Term of Renewal Period:12 Year(s)
Passive Ownership:Allowed, But Discouraged
Area Development Agreements?No
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?No

Expansion Plans

Projected New Units Over Next 12 months:

   15
U.S.:Yes, All United States
Canada:Yes, All Canada
Overseas:No
 
 
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