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DirectBuy
8450 Broadway
Merrillville, IN 46410


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Business Description

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:

154

96.9%
Company-Owned Units:53.1%
 
Total Operating Units:
159
100.0%
 
Geographic Distribution:
U.S.:13786.2%In 33 States
Canada:2213.8%In 7 Canadian Provinces
International:00%In 0 Foreign Countries
 
Total:
159
100.0%
 
 
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:$552-1.335M
Total Investment:$552-1.335M
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

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
 
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
 
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
 
Expansion Plans
 
Projected New Units Over Next 12 months: 15

U.S.:

Yes, All United States
Canada:Yes, All Canada
Overseas:No
Submit an online form to receive information from DirectBuy.
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