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DirectBuy
- DirectBuy, Inc.
Merrillville, IN 46410
- (800) 454-0018 / (219) 648-7360
- (219) 756-2859 (Fax)
- Mr. Robert Troutman, VP Franchise Development
- [email protected]
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 | 101 | 94.4% |
|---|---|---|
| Company-Owned Units | 6 | 5.6% |
| Total Operating Units | 107 | 100% |
Geographic Distribution
| USA | 141 | 86.5% | In 25 States |
|---|---|---|---|
| Canada | 22 | 13.5% | In 4 Provinces |
| International | 0 | 0.0% | In 0 Foreign Countries |
| Total | 163 | 100% |
Multi-Unit Operators
| Multi-Unit Operators | N/A |
|---|---|
| Franchises Owned by Multi-Unit Operators | N/A |
North American Unit Density
| Density | Units |
|---|---|
| California | 14 |
| Florida | 11 |
| New York | 10 |
Registered in the 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
Back to TopSupport and Training
General Information
| IFA Member | Yes |
|---|---|
| CFA Member | Yes |
| Franchisee Association? | 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 |
Ongoing Support
| Central Data Processing | Included |
|---|---|
| Central Purchasing | Included |
| Field Operation Evaluation | Included |
| Field Training | Included |
| Initial Store Opening | Included |
| Inventory Control | N/A |
| Franchisee Newsletter | Included |
| Regional or National Meetings | Included |
| 800 Telephone Hotline | N/A |
Training
| Merrillville, IN | 4 Weeks |
| Operating Franchise | 5 Weeks |
Financial Requirements
Investment
| Minimum Net Worth | $500K |
|---|---|
| Cash Investment | $100-200K |
| Total Investment | $354-800K |
| Average Total Investment | $577K |
Fees
| Initial Franchise Fee | $75K-155K |
|---|---|
| Average Franchise Fee | $115K |
| On-Going Royalty | 22% |
| Average Royalty | 22% |
| Advertising Fee | N/A |
Site Information and Requirements
| Average Number of Full-Time Employees | 12 |
|---|---|
| Average Number of Part-Time Employees | 2 |
| Space Needs (in square feet) | 8,000-12,000 |
| Preferred Site Types | |
| Other Site Types Allowed | Business Park |
| Encourages Conversions | N/A |
| Item 19 (Earnings Claim) Provided? | No |
| Listed in the SBA Registry? | No |
Franchisee Qualifications
| Financial Net Worth | 4 |
|---|---|
| General Business Experience | 4 |
| Specific Industry Experience | 1 |
| Formal Education | 3 |
| Psychological Profile | 1 |
| Personal Interviews | 5 |
Terms of Contract
| Term of Initial Contract | 12 |
|---|---|
| Term of Renewal Period | 12 |
| Passive Ownership? | Not Allowed |
| Area Development Agreements? |
No |
| Sub-Franchisor Contracts? |
No |
| Franchisees Allowed to Expand Within Territory? | No |
Expansion Plans
| Projected New Units Over Next 12 Months | 15 |
|---|---|
| USA | Yes, All United States |
| Canada | Yes, All Canada |
| Overseas | No |
