About FRONTDoor Franchise
FRONTDoor Franchising is a home services franchise that has been offering franchise opportunities since 2021 under its parent company The Frontdoor Collective, Inc.
The brand operates in the residential services space, connecting homeowners with trusted professionals for a range of home maintenance, repair, and improvement needs.
The franchise fee is $50,000.
FRONTDoor Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | As established by cooperative members, but not exceeding 2% of Gross Sales | National brand fund |
| Total Investment Range | $88,635 – $308,230 | Includes build-out, inventory, working capital |
The investment range of $89K–$308K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (As established by cooperative members, but not exceeding 2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Construction and Leasehold Improvements | $0 | $500 |
| Lease Deposits – 3 Months | $0 | $750 |
| Utility Deposits | $110 | $110 |
| Furniture and Fixtures | $0 | $650 |
| Equipment | $6,900 | $176,250 |
| Signage | $70 | $175 |
| Computer, Software and Business Management System | $75 | $2,125 |
| Insurance Deposits – 3 Months | $1,250 | $7,500 |
| Travel for Initial Training | $1,000 | $3,100 |
| Professional Fees | $4,000 | $7,000 |
| Licenses and Permits | $50 | $500 |
| Printing, Stationery and Office Supplies | $550 | $1,775 |
| Additional Funds – 3 months | $24,630 | $57,795 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 40% of the then current franchise fee, with a minimum of $20,000 |
| Technology Fee | Up to $800 per month, currently $600 per month |
| Audit Fee | Cost of audit |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Supplemental Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $500 per day |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $100 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred by us |
| Management Service | 20% of Gross Sales, plus expenses |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | $50 per violation |
| Non-Compliance | Actual fees, costs, and expenses |
| Legal fees and expenses | Costs and expenses |
| Indemnification | Actual cost incurred by us |
| Supplier Review | Actual fees, costs, and expenses |
| Operations Manual Replacement Fee | $500 |
| Relocation Fee | Costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 7 day period |
| Classroom Training | 16 |
| On-the-Job Training | 24 |
| Training Location | Virtual and/or Dallas, TX |
| Additional Training | Supplemental training fee is currently $500 per on-site trainer per day, plus travel, meals, and accommodation expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | A geographic area within a 3-hour driving distance, on average, throughout. |
| Description | The scope of the Operating Territory varies based on population density, demographics, and geographical boundaries, determined by the franchisor. It is generally a geographic area within a 3-hour driving distance. The franchisor may identify the territory by zip code, boundary streets, highways, county lines, or designated market area. The territory is not exclusive or protected, and the franchisor or other franchisees may compete within it. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 4 years |
| Renewal Term | 1 additional 4 year term |
| Renewal Conditions | Franchisee must be in compliance with the Franchise Agreement, provide 180 days written notice to renew, sign the then-current form of Franchise Agreement and related agreements, sign a general release, remodel and upgrade the business to meet current standards, and meet all other renewal requirements. Owners and their spouses must also be in compliance and personally guarantee the new agreement. |
| Transfer Fee | 40% of the then current franchise fee, with a minimum of $20,000 |
| Transfer Conditions | Franchisee must provide 30 days prior written notice, satisfy all accrued monetary and other obligations, not be in default, ensure the transferee is bound by all terms and conditions (including personal guarantees from owners and spouses), execute a general release, and complete any required training programs. The franchisor's approval is discretionary and subject to the transferee meeting current standards and the franchisor's business judgment. |
| Termination for Cause | The franchisor can terminate for various curable defaults (e.g., failure to pay fees, failure to operate according to standards, non-compliance with laws, failure to maintain insurance) with a 10 or 30-day cure period, or for non-curable defaults (e.g., 3 or more curable defaults, intentional refusal to comply, creating health/safety threats, abandonment, material misrepresentation, unauthorized transfer, disclosure of confidential information, felony conviction, unethical conduct, failure to complete training). |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the post-termination restricted period of 24 months, the franchisee (and owners/spouses) cannot engage in any competitive business within the Operating Territory, a 25-mile radius surrounding it, or a 10-mile radius of any other The Frontdoor Collective Business. This includes involvement, ownership, or interest in a competitive business, or performing services for one. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires the franchisee or, if a Corporate Entity, its managing shareholder or partner (the “Managing Owner”) to be personally responsible for the daily management and supervision of the Franchised Business. The Managing Owner must complete initial training and obtain necessary licenses. A manager may be hired if they meet minimum standards, complete training, and sign a confidentiality agreement. All owners and their spouses must personally guarantee all financial obligations and comply with non-competition covenants. |
| Required Suppliers | Franchisees must purchase System Supplies, Branded Items and Marketing Materials, Business Management System and Computer Equipment, Service Vehicles, and Insurance from the franchisor, its affiliates, or designated approved suppliers. |
| Supply Restrictions | The franchisor may designate itself or its affiliates as exclusive suppliers and may limit the number of approved vendors. Franchisees must purchase System Supplies from designated suppliers. |
| Franchisor Revenue from Suppliers | As of December 31, 2021, the franchisor did not earn any revenue from approved suppliers based on franchisee purchases of source restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
FRONTDoor Franchise Earnings — Item 19
FRONTDoor 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.
FRONTDoor 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.
FRONTDoor System Growth
FRONTDoor currently operates 48 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 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 49 | 0 | 49 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
FRONTDoor Franchise — FAQ
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