About Delux Franchise
Delux Franchise, Inc.
is a franchise system that has been operating since 1994, offering entrepreneurs a long established framework for business ownership.
With decades of franchising experience, the brand provides its network of owners with operational support, training, and brand resources.
Delux Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0 | One-time payment upon signing |
| Royalty Fee | 30% of Gross Fares of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $0 | National brand fund |
| Total Investment Range | $20,929.75 – $30,150.75 | Includes build-out, inventory, working capital |
The investment range of $21K–$30K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (30% of Gross Fares) and marketing fee ($0) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $0 |
| Additional Franchised Car | $0 | $0 |
| Cost of Personal Smartphone | $500 | $1,400 |
| Personal Smartphone Service | $180 | $300 |
| Smartphone Linking Tool | $50 | $50 |
| Supplies & Equipment | $1,610 | $1,610 |
| Fuel & Car Maintenance | $5,525 | $7,176 |
| Working Capital | $3,000 | $5,000 |
| Vehicle-Lease/Purchase | $2,925 | $5,650 |
| Vehicle Registration | $37 | $37 |
| Licensing – Livery | $252 | $252 |
| Medallion & related fees | $625 | $625 |
| CMV Tax | $800 | $800 |
| Diamond Sticker | $300 | $300 |
| Taxi Driver’s License | $128.5 | $128.5 |
| Finger Printing Fee | $90.25 | $90.25 |
| Drug Testing Fee | $32 | $32 |
| Defensive Driving Course | $40 | $100 |
| Auto Liability & Physical Damage (Average Driver) | $3,750 | $5,000 |
| Workers' Compensation (Black Car Fund) | $0 | $0 |
| Training (Classroom – 2days) | $200 | $200 |
| Training (On-road - 2 days) | $100 | $100 |
| Meals & Travel | $30 | $60 |
| Lodging (if necessary) | $120 | $240 |
| Incorporation | $500 | $750 |
| E-ZPass® | $135 | $250 |
| Privilege Permit (NY Port Authority) | $0 | $0 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $500 |
| Renewal Fee | $0 |
| Technology Fee | $60-$100 per month for Smartphone Data Service |
| Weekly Dispatch Fee | $25 + 5% sales tax Weekly |
| Additional Training (classroom) | $100/day (per person) |
| Additional Training (on-road) | $50/day (per person) |
| Vehicle Finance Costs | $975-$1,875 Monthly |
| Motor Vehicle Reports | $10 Per report |
| Credit Card Processing Fee | $10 Monthly |
| Special handling Fees | $50 Per occurrence |
| Black Car Fund Surcharge | 3.0% of gross invoices (paid by customer) |
| PANYNJ Access Fee | $2.50 pick-up/drop-off (paid by customer) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 days |
| Classroom Training | 2 days |
| On-the-Job Training | 2 days |
| Training Location | Port Washington, New York |
| Additional Training | Additional training programs, workshops, and seminars may be offered semi-annually, up to 5 days per year. Remedial or supplemental training costs $100 per day for classroom and $50 per day for on-road, per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Metropolitan New York Area (Long Island (Nassau and Suffolk Counties), the five boroughs of New York City, Southern Connecticut and Eastern New Jersey) |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from businesses that we own, or from other channels of distribution or competitive brands that we control. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years |
| Renewal Fee | $0 |
| Renewal Conditions | Compliance with current Franchise Agreement, and executing a new Franchise Agreement if the standard provisions have been materially changed since the preceding agreement was entered into. |
| Transfer Fee | $500 |
| Transfer Conditions | Franchisor's prior right of first refusal. Conditions include: all monetary obligations satisfied, no default, execution of general release, transferee meets managerial/business standards, good moral character, business reputation, credit rating, sufficient equity capital, execution of current standard franchise agreement (or assumption of obligations), completion of training, purchase/lease of conforming vehicle, franchisee remains liable for pre-transfer obligations. |
| Termination for Cause | Franchisor may terminate without notice for: alcohol/drug use while operating, felony conviction, mistreatment of customer, dishonesty/abuse of trust, suspension/revocation of driver's license, material breach of specific paragraphs (5.1, 6.1 E, G, H, I, K, L, 7.1, 7.2, 8.1, 8.2, 9.2), serious/repeated rule violations, endangering public health/safety, or exhibiting a pattern of unqualified conduct. Franchisor may terminate with 30 days' notice for: breach of other provisions, insolvency/bankruptcy, failure to attend training or commence operations, failure to transfer interest upon death/incapacity, repeated defaults, abandonment, failure to maintain standards, misuse of proprietary marks, failure to pay amounts owed, failure to cooperate with inspections, default under vehicle lease, failure to submit required information, or failure to obtain prior written approval. |
| Non-Compete Period | 1 year post-termination |
| Non-Compete Details | Franchisee covenants not to directly or indirectly engage in or be interested in a competitive private, chauffeur-driven limousine service in Nassau or Western Suffolk Counties, New York, during the term and for one year post-termination. This includes soliciting customers or employees of the franchisor or other franchisees. Franchisee may work as a for-hire or black car driver for another company outside the franchised territory if permitted by NYC TLC, and engage in other non-competitive employment. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor recommends that either the Franchisee or his designee utilize the Franchise rights to obtain the maximum benefit of his investment. No person, partnership or corporation other than the Franchisee shall be permitted to use the franchise without prior written approval. |
| Required Suppliers | Franchisee must use compatible communications systems and Willets Management Systems, Inc. for credit card and charge account transaction processing. |
| Supply Restrictions | Franchisee must use a smartphone compatible with franchisor's system and Willets Management Systems, Inc. for credit card processing. Inactive franchisees will be disaffiliated from Reagan Conveyance's NYC TLC base license, impacting operational rights, workers' compensation, and airport access. |
| Franchisor Revenue from Suppliers | The franchisor does not derive revenue from franchisee purchases and leases, except as detailed in Items 6 and 7 regarding affiliate services and vehicle financing. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor's affiliate, Mo-Town, Inc., may offer to finance vehicle leases. Mo-Town, Inc. charges a financing rate of 10.5% per annum on the vehicle's value, plus a $75 monthly management fee for the lease term (3-4 years, with a $1 purchase option). Late fees of 1.25% per month and a $500 early termination fee may apply. Mo-Town, Inc. may also charge an acquisition profit up to 5% of the vehicle's acquisition cost. Financing decisions consider employment history, customer service, references, and creditworthiness. |
Delux Franchise Earnings — Item 19
Delux does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Delux 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.
Delux System Growth
Delux currently operates 106 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 30 | 21 | 134 |
| 2020 | 16 | 5 | 145 |
| 2021 | 34 | 95 | 106 |
Transfers: 0 | Closures: 95
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 GRASSI & CO., CPAs, P.C. for year ending December 31.
Delux Franchise — FAQ
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