About Coast to Coast Engineering Servicesd/b/a Criterium Engineers Franchise
Criterium Engineers is a professional engineering consulting franchise that has been offering opportunities since 1989.
Each location provides building inspection, structural assessment, and engineering consulting services to property owners, buyers, attorneys, and insurance companies.
The brand is one of the oldest engineering franchise networks in the country, with a long track record of trusted technical expertise.
Coast to Coast Engineering Servicesd/b/a Criterium Engineers Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 to $79,500 | One-time payment upon signing |
| Royalty Fee | 6.0% of Gross Receipts (tiered down to 4.0% or flat $5,000/month) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross receipts or $50.00, whichever is greater. Payable monthly. | National brand fund |
| Total Investment Range | $68,980 – $133,210 | Includes build-out, inventory, working capital |
The investment range of $69K–$133K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.0% of Gross Receipts (tiered down to 4.0% or flat $5,000/month)) and marketing fee (1% of gross receipts or $50.00, whichever is greater. Payable monthly.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $79,500 |
| Rent and Related Real Estate Charges | $0 | $4,500 |
| Utility and Office Security Deposits | $100 | $3,500 |
| Other Pre-paid Expenses and Licenses | $150 | $850 |
| Leasehold Improvements, Fixtures and Equipment | $500 | $5,000 |
| Insurance | $3,180 | $3,660 |
| Training | $0 | $500 |
| Pre-opening Advertising | $500 | $1,500 |
| Printing | $500 | $500 |
| Opening Inventory Supplies | $500 | $1,000 |
| Legal and Professional Fees | $2,050 | $3,800 |
| Additional Funds for First 6 Months | $12,000 | $25,900 |
| Vehicle | $0 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 15% of the then current initial franchise fee if seller provides 1 year transition/training support; 25% if no support is provided. |
| Renewal Fee | No initial renewal fee, but a new franchise agreement with potentially different terms (including fees) may be required. |
| Technology Fee | To be determined (anticipated to start in 2023) |
| Audit Fee | Cost of audit plus 18% interest on under-payment plus related costs (if understatement is at least 5% of gross receipts). |
| Interest on Late Payments | 12% on unpaid balance |
| Late Report Fee | $100.00 per violation |
| Suppliers Approval | Reasonable cost of inspection and actual cost of test not to exceed $1,000 |
| Franchise Training Fees | Travel, if required, in excess of allowance |
| National Conventions | Registration fee |
| Additional Training | Travel and lodging expenses, if required |
| Indemnification | All costs including attorneys’ fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 75 hours |
| Training Location | Virtually using Zoom or other similar technology, or at the offices of CRITERIUM ENGINEERS. |
| Additional Training | Franchisor may provide and require ongoing training programs (refresher training, seminars, classes, meetings), not exceeding one session of 40 hours over one week in any two-year period. Franchisees are required to attend all annual conventions. Additional on-site assistance is available upon request, subject to a daily flat fee plus expenses. Technical employees are typically required to attend Modules 1-3 of the training. Insurance companies may require 6 hours of continuing education annually for E&O coverage. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Anywhere from 250,000 to 1,500,000 people |
| Description | Franchisee is granted an area of primary responsibility for all, or a portion, of a metropolitan area, encompassing 250,000 to 1,500,000 people, determined by negotiation and depicted on a map. The franchisor will not locate another Criterium Engineers franchise or company-owned outlet within the Territory. To maintain exclusivity after five years, the franchisee must meet minimum annual Gross Receipts quotas, which vary by population base. Failure to meet quotas may result in termination of exclusivity, territory redesign, or franchise termination. Area Development Agreements grant exclusive rights to develop a specified number of franchises within a defined Development Area, typically based on political boundaries and demographics. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two (2) additional successive terms of five (5) years each |
| Renewal Fee | No initial renewal fee, but a new franchise agreement with potentially different terms (including fees) may be required. |
| Renewal Conditions | To renew, franchisee must not be in default, provide required notice (180 days to 12 months prior), sign a current Franchise Agreement (which may have different terms), meet current qualifications and training requirements, and sign a general release. |
| Transfer Fee | 15% of the then current initial franchise fee if seller provides 1 year transition/training support; 25% if no support is provided. No charge if transferred to a corporation controlled by the franchisee or to a qualified heir/personal representative upon death/disability. |
| Transfer Conditions | Requires franchisor's prior written consent (not unreasonably withheld). Conditions include: transferee(s) or person in charge must be a licensed professional engineer/architect, all obligations owed to franchisor must be paid, execution of a general release (if not prohibited by state law), transferee must meet franchisor's qualifications (management, business, financial standards, character, credit rating), transferee and owners must sign the then-current franchise agreement, complete copies of transfer documents provided, transfer fee paid, transferor may be required to guarantee transferee's performance, and all necessary third-party consents obtained. |
| Termination for Cause | Franchisor may terminate without notice (or minimum required by law) for reasons such as: failure to complete training, material misrepresentation in application, indictment/conviction of certain crimes, failure to adhere to NSPE Code of Ethics, unauthorized use/disclosure of Manual/Confidential Information, abandonment for 5+ consecutive days, unauthorized transfer of control/interest, two or more instances of understating payments by 5%+, insolvency/bankruptcy, material misuse of Marks, two or more instances of failing to submit reports/fees or comply with agreement within 12 months, failure to obtain/maintain required permits/licenses within 10 days of notice, or failure to attain Minimum Gross Receipts. For other defaults, 30 days written notice to cure is generally given. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisee (and immediate family/owners/supervisory employees) must not have any direct or indirect ownership interest in, or perform services for, any Competitive Business located or operating anywhere in the world. After termination/expiration, franchisee (and affiliates) must not own, manage, operate, or act as a consultant for any Competitive Business for 2 years within a 50-mile radius of the Territory or within 10 miles of any other Criterium Engineers Franchised Business. This does not apply to less than 5% beneficial interest in publicly-held corporations. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee, or its principal partner, shareholder, or officer (if a partnership or corporation), must be licensed as a 'professional engineer' and devote full-time attention (at least 35 hours per week, excluding vacation/sick leave) and best efforts to the operation of the Franchised Consulting Engineering Business, unless prior written approval is granted. This individual must satisfactorily complete the training program and sign a Confidentiality and Non-Competition Agreement. Consulting Engineering Services must be provided by licensed professional engineers. Franchisee has sole authority and control over day-to-day operations and employees. |
| Required Suppliers | Franchisee must purchase various items in accordance with franchisor's specifications, including equipment, supplies, stationery, and computer system software. These items must be purchased from 'approved suppliers' designated or approved by the franchisor. Creative Imaging Group is an approved supplier for most printed items. |
| Supply Restrictions | Franchisee must purchase items that comply with franchisor's specifications and quality standards. If not from an approved supplier, franchisee must submit information/samples for approval. Franchisor can charge up to $1,000 for inspection/testing and can revoke approval. Franchisor reserves the right to change standards and specifications. |
| Franchisor Revenue from Suppliers | In 2021, franchisor had total revenues of $7,264,037. Of that, $7,802 (0.11%) was from franchisees’ purchases of marketing materials, technology products and support, and technical services, most of which was a pass-through of costs. Certain items may be marked up between 15% and 25% above actual cost to cover processing and inventory costs. Franchisor receives no other consideration from recommended suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Criterium Engineers may offer financing for up to 25% of the initial minimum franchise fee ($12,375) to $42,375 of the maximum franchise fee, plus 100% of any additional franchise fee amount, for qualified franchisees. The financing is provided through an unsecured promissory note, bearing interest at 12% per annum (or maximum legal rate) and payable in equal monthly installments over up to two years. A personal guarantee is required. Default on the note constitutes a breach of the Franchise Agreement. |
Coast to Coast Engineering Servicesd/b/a Criterium Engineers Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Coast to Coast Engineering Servicesd/b/a Criterium Engineers Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Coast to Coast Engineering Servicesd/b/a Criterium Engineers System Growth
Coast to Coast Engineering Servicesd/b/a Criterium Engineers currently operates 31 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 4 | 28 |
| 2020 | 2 | 1 | 29 |
| 2021 | 3 | 1 | 31 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Blake Hurley McCallum & Conley, LLC for year ending December 31.
Coast to Coast Engineering Servicesd/b/a Criterium Engineers Franchise — FAQ
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