Economists, city planners, housing experts, Architects and the media began telling everyone that modular and prefab was the future of not only homebuilding but hotels, hospitals, affordable housing, ADU’s, highrise apartments and even housing for the homeless.
The next part required Jim and Jane to go through an extensive training program.
There are currently four required components to initial training:
- The Management Training Readiness Assessment (MTRA)
- SERVSAFE certification
- The American Dairy Queen Corporation’s training program (three phases): Phase 1, Product and Equipment Training; Phase 2, Systems & Management Training; Phase 3, People, PRIDE and Profit Training.
- A cake decorating and certification course
The franchise’s designated manager and two assistant managers are required attendees for the first 3 components. Only one person is required to attend a cake decorating certification course. Prior to attending the franchiser's training program, the required attendees must pass the MTRA, which is administered at a location designated by the franchiser. The MTRA measures leadership, customer service, decision-making, prioritizing and business math, and may be modified by the franchiser at any time.
The franchise’s controlling owner (as defined in the franchise agreement) must, at the franchisee’s expense, attend all meetings the franchiser holds or sponsors in their area or region including all DMA or other marketing area meetings, and all meetings relating to new products or product preparation procedures, new DQ system programs, new operational procedures or programs, training, restaurant management, financial management, sales or sales promotion, or similar topics.
Here are the required expenses before the doors are opened for the first time:
- Initial franchise Fee $35,000-$35,000
- ALTA Survey $0-$5,000
- Initial Training Fees and Costs $1,125-$11,825
- Travel And Living Expenses for Training Programs $23,000-$38,500
- Building Construction and Leasehold Improvements $550,000-$900,000
- Construction Consultation Services $0-$7,500
- Building Plans, Design Intent Plans and Architectural Seal $15,000-$45,000
- Equipment (Including Signs and Point-of-Sale Systems) $390,000-$530,000
- Training Inventory $5,000-$15,700
- Opening Inventory $8,300-$38,900
- Utility Deposits, Business Licenses and Government Charges $4,000-$17,000
- Attorney's Fees $1,000-$8,000
- Additional Funds (3 Months) $51,000-$198,000
ESTIMATED TOTAL $1,083,525-$1,850,425
But Here Is The REAL Bottom Line:
Now let’s look at what Jim and Jane could have made if they had chosen to go with a modular home factory that offered a training program.
The average small builder makes $86,000 a year.
If Jim and Jane had invested $50,000 for training and assistance on marketing, selling and building their first modular home, they would have made an average of $16,000 more without all the hassle, fees and red tape of being a Franchisee of a major company like Dairy Queen, 7-11, Taco Bell or Jiify Lube.
Why doesn’t this happen in our industry? Until recently there hasn't been any way for someone, especially people without a lot of construction knowledge to enter the world of building modular houses. No path, no school, no training...nothing.