About Driverseat Franchise
Driverseat is a transportation services franchise offering designated driver services, special events chauffeuring, assisted transport, and car relocation within a defined territory.
The brand provides professional driving solutions for customers who need reliable transportation assistance for a variety of situations.
The franchise fee ranges from $20,000 to $30,000 USD, and the company has been franchising since 2019.
Driverseat Franchise Cost & Fees
Minimum Investment
$42K
Average Investment
$55K
Maximum Investment
$68K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 - $30,000 USD | One-time payment upon signing |
| Royalty Fee | $339 - $439 USD per month (based on territory level), plus $175 USD per month per vehicle for each vehicle in excess of the first of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to $300 USD per month (upon establishment of Advertising Fund), plus local advertising payment if minimum not met. | National brand fund |
| Total Investment Range | $41,729 – $68,457 | Includes build-out, inventory, working capital |
The investment range of $42K–$68K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($339 - $439 USD per month (based on territory level), plus $175 USD per month per vehicle for each vehicle in excess of the first) and marketing fee (Up to $300 USD per month (upon establishment of Advertising Fund), plus local advertising payment if minimum not met.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $30,000 |
| Onboarding and Training Fee | $10,000 | $10,000 |
| Computer Equipment | $0 | $900 |
| Grand Opening Advertising | $2,000 | $2,000 |
| Business Licenses and Permits | $1,000 | $4,000 |
| Professional Fees | $500 | $4,000 |
| Insurance | $350 | $500 |
| Training Expenses | $500 | $2,500 |
| Vehicle Down Payment | $2,000 | $5,000 |
| Vehicle Wrapping | $3,000 | $4,000 |
| Uniform Package | $225 | $675 |
| Print Material | $1,000 | $2,000 |
| Business VOIP Phone System and Service | $59 | $118 |
| Additional Funds – For Initial 3 Months of Operation | $1,000 | $2,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $3,500 USD (to third party); $2,000 USD (to existing franchisee); legal costs (to wholly owned entity). |
| Renewal Fee | $2,000 USD |
| Technology Fee | $199 USD per month (Software License Fee), not to exceed $350 USD per month during initial term. |
| Audit Fee | Cost of audit and inspection, including related accounting and legal expenses, any understated amounts, plus 1.5% interest per month on understatement. |
| Local Advertising Payment | Difference between amount spent and $300 USD per month (or $600 USD if Minimum Sales Volume not met) |
| Business VOIP Phone System | $39 - $49 CAD per month plus excess usage charges |
| Vehicle Software Fee | $40 USD per Vehicle per month |
| Unauthorized Advertising Fee | $500 USD per occurrence |
| Prohibited Product, Service, Supplier Fee | $250 USD per day of offering or using unauthorized products or services |
| Service Charge | Up to 5% of total charge (for credit card payments) |
| Ongoing Training Fees / Additional Assistance | Approximately $500 USD per attendee per day, plus expenses |
| Interest on Late Payments | Lesser of 1.5% per month or highest commercial contract interest rate permitted by law |
| Late Payment Fee | $65 USD on first occurrence; $150 USD for every occurrence thereafter |
| Standard Default Fee | Up to $250 USD per violation |
| Peer Compliance Committee Fee | Up to $1,000 USD per violation |
| Indemnification | Varies under circumstances |
| Customer Issue Resolution | Reasonable costs incurred for responding to a customer complaint |
| Cost of Enforcement or Defense | All costs, including accounting and attorney fees |
| Failure to Submit Required Report Fee | $100 USD per occurrence, plus $100 USD per week until submitted |
| Returned Check or Insufficient Funds Fee | Greater of $100 USD per occurrence or highest amount allowed by law |
| Convention Fee | $480 - $660 CAD per person (currently $40 CAD per month in 12 installments) |
| Participation Fees | Up to $1,000 USD if you fail to complete 1,500 continuing engagement credits annually |
| Supplier and Product Evaluation Fee | $100 - $500 USD |
| Insurance Reimbursement | Reimbursement of our costs, plus a 20% administration charge |
| Tax Assessment | Our actual expenses |
| Liquidated Damages | Average monthly Royalty Fees, Vehicle Software Fee, Advertising Fund contributions, Software License Fees, and any other recurring fees paid/owed during the 12 months preceding termination, multiplied by the lesser of 24 months or remaining term. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 20 business days |
| Classroom Training | 146 hours |
| On-the-Job Training | 0 hours |
| Training Location | Corporate headquarters of Driverseat Inc. (Canada) in Kitchener, Ontario, or virtually, or a combination of both. |
| Additional Training | Ongoing virtual training programs are required during the first year (no charge for first offering, fees for retakes). Annually, franchisees must obtain at least 1,500 continuing engagement credits (webinars, meetings, coaching, annual conference attendance), with fees for non-compliance ($1,000 for <500 credits, $750 for 500-999, $500 for 1,000-1,499). System-wide refresher or additional training courses may be required, with potential tuition fees. Additional training/assistance requested by franchisee or determined by franchisor costs $500 USD per attendee per day plus expenses. Mandatory annual convention attendance requires a convention fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Based on geographic area, number of qualified event locations, population properties, and other demographic characteristics, corresponding to the Initial Franchise Fee level. |
| Description | The Franchise Agreement grants a protected territory based on geographic area, qualified event locations, population, and other demographic characteristics, corresponding to the Initial Franchise Fee level. Territories in densely populated areas may be smaller, while less dense urban areas may have larger territories. Franchisees must operate only within their territory and cannot relocate without written consent. While the territory is protected, it is not exclusive; franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels/brands controlled by the franchisor for certain services (e.g., mobile app bookings, commercial clients, shuttle services). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years |
| Renewal Fee | $2,000 USD |
| Renewal Conditions | Give timely written notice; maintain compliance with Franchise Agreement and System Standards; cure deficiencies; maintain possession of and agree to refurbish/replace the Vehicle and modify the business as required; sign the new franchise agreement and any ancillary documents, a release (if law allows), and other documents; and pay the successor franchise fee. |
| Transfer Fee | $3,500 USD (to third party); $2,000 USD (to existing franchisee); legal costs (to wholly owned entity). |
| Transfer Conditions | New franchise owner qualifies; all amounts due to franchisor/affiliates/vendors are paid; all required reports submitted; no default within 60 days prior to request or during transfer period; transferee/owners/affiliates are not in a competitive business; training completed; transferee agrees to upgrade/refurbish business (including vehicle); lease transfer permitted; transferee signs then-current franchise agreement and related documents; transfer fee paid; transferor signs general release (if law allows); transferor/owners execute guaranty; franchisor approves material terms; transferor subordinates amounts due; transferor ceases use of Marks; transferor/owners/immediate families will not engage in competitive business for a specified time after transfer. |
| Termination for Cause | Franchisor may terminate for various causes, including material misrepresentation, failure to open within 90 days, failure to complete training, abandonment, unapproved transfers, felony conviction, failure to maintain insurance, failure to meet Minimum Sales Volume, unethical conduct, unauthorized use of confidential information, failure to pay taxes, repeated defaults (even if cured), bankruptcy-related events, or violation of anti-terrorism laws. Curable defaults have 24-hour or 30-day cure periods depending on the nature of the default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For two (2) years after termination or expiration, the franchisee, its owners, and their spouses may not have any direct or indirect interest in, or participate in, any Competitive Business located within the former territory or within 20 miles from the edge of the former territory or any other Driverseat Business territory then operating or under development. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Driverseat Business must be managed by the franchisee or, if an entity, by a Managing Owner for at least the first 60 days. After this period, a Designated Manager may be appointed. The Managing Owner or Designated Manager must devote full-time efforts to the business, focusing on management while drivers are hired to operate vehicles. All Designated Managers must complete initial training and receive franchisor approval. |
| Required Suppliers | Our affiliate, LNB, is the only approved supplier for uniforms and the business VOIP phone system. Franchisees must also use an approved vendor for phone system installation, a mandatory supplier for vehicle wraps, and a mandatory supplier for larger capacity vehicles to our specifications. |
| Supply Restrictions | Franchisees must purchase certain products, equipment, vehicles, signage, initial inventory, materials, supplies, and services from franchisor-approved vendors, which may include the franchisor or its affiliates. The franchisor may concentrate purchases with one or more suppliers to obtain lower prices or better support. Approval of a supplier may be conditioned on various criteria, and approval can be revoked. Franchisees must submit written requests for approval of unapproved suppliers, which may incur an evaluation fee. |
| Franchisor Revenue from Suppliers | During the last fiscal year (ended August 31, 2022), the franchisor did not receive revenue from required purchases/leases by franchisees. Its affiliate, LNB, received $3,980.78 CAD from required purchases/leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to you. We do not guarantee your note, lease, or other obligation. |
Driverseat Franchise Earnings — Item 19
Driverseat does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Driverseat 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.
Driverseat Litigation & Risk Flags
Clean Litigation RecordDriverseat has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Driverseat System Growth
Total Units
3
Franchised
3
Company-Owned
0
Driverseat currently operates 3 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 |
|---|---|---|---|
| 2020 | 1 | 1 | 1 |
| 2021 | 1 | 0 | 2 |
| 2022 | 1 | 0 | 3 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 17 states: CA, CT, HI, IL, IN, MD, MI, MN, NE, NY, ND, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$61K
Net Income
$-36,988
Total Assets
$37K
Audited by Boyum & Barenscheer PLLP for year ending August 31.
Driverseat Franchise — FAQ
The total investment to open a Driverseat franchise ranges from $41,729 to $68,457, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000 - $30,000 USD. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Driverseat charges a royalty fee of $339 - $439 USD per month (based on territory level), plus $175 USD per month per vehicle for each vehicle in excess of the first of gross sales, plus a Up to $300 USD per month (upon establishment of Advertising Fund), plus local advertising payment if minimum not met. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Driverseat Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Driverseat to ensure you have the most up-to-date version.
Driverseat does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Driverseat has been franchising since 2019. The FDD shows an investment range of $41,729-$68,457, a $339 - $439 USD per month (based on territory level), plus $175 USD per month per vehicle for each vehicle in excess of the first royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $20,000 - $30,000 USD and the total investment ranges from $41,729 to $68,457 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Driverseat and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Driverseat or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com