How much does a Schooley Mitchell franchise cost?
The July 31, 2025 U.S. Franchise Disclosure Document gives two distinct capital ranges: $75,300 to $85,550 for a standard or builder franchise, and $252,500 to $262,750 for a development franchise. The development format has a materially different initial fee and may operate up to 10 approved satellite offices, so its range should not be blended with the standard/builder range.
Data basis. Legal franchisor: 1073355 Ontario Limited, operating as Schooley Mitchell. Document: 2025 U.S. Franchise Disclosure Document, issued July 31, 2025. Formats reviewed: standard, builder, and development franchises. Cost sections reviewed: Items 5, 6, 7, 8, 10, 11, and 17. Information checked July 20, 2026. The franchisor does not publish a matching current FDD on an official franchise-controlled webpage, so FDD citations below are unlinked Item-and-page references. See the brand's official U.S. franchise information.
Capital snapshot
An official opportunity page still displays a $68,000 franchise fee. That does not match the current verified 2025 FDD, which discloses $73,000 for standard and builder franchises. For a purchase decision, use the current FDD and the final agreements rather than the older website figure.
Why are there two initial investment ranges?
The 2025 FDD separates the development franchise from the standard and builder franchises because the development format carries a $250,000 Initial Franchise Fee and permission, subject to approval, to establish up to 10 satellite offices. Standard and builder franchises share the same Item 7 range, although their ongoing Royalty Fee, Marketing and Promotion Fund contribution, renewal fee, and agreement term differ.
The bars use a $0 to $270,000 scale. Exact official low and high amounts appear beside each format.
Interpretation: the development range is higher primarily because its Initial Franchise Fee is $177,000 more than the standard/builder fee. Source: 2025 FDD, Item 7, pages 10–13. Official figures; no midpoint or average used.
One Item 7 range, two different ongoing contracts
Standard franchise
- Operation
- Full-time professional consulting business.
- Initial fee
- $73,000.
- Royalty
- 8% of monthly Gross Sales, with $200 and $400 minimum stages.
- Term / renewal
- 10-year initial term; $2,500 renewal fee.
Builder franchise
- Operation
- Part-time operation is permitted.
- Initial fee
- $73,000.
- Royalty
- 12% of monthly Gross Sales; $125 monthly minimum from month 7.
- Term / renewal
- 5-year initial term; $500 renewal fee.
Development franchise
- Development right
- Up to 10 approved satellite offices.
- Initial fee
- $250,000.
- Royalty
- 8%, with 7% and 6% annual Gross Sales tiers.
- Term / renewal
- 10-year initial term; $2,500 renewal fee.
Sources: 2025 FDD, Item 1, pages 1–2; Item 6, pages 6–9; Item 17, pages 29–32; Builder Franchise Addendum; Development Franchise Addendum. The brand's official franchise FAQ also describes the home-based model and general fee structure, but current dollar amounts should be confirmed against the 2025 FDD.
What does the initial investment include?
Most of the disclosed capital is paid for the Initial Franchise Fee. The remaining Item 7 range covers training expenses, home-office or optional outside-office equipment, deposits and prepaid expenses, rent for an optional office, logo office supplies, and Additional Funds. The FDD allows a Schooley Mitchell business to operate from a home office, so outside-office categories can be $0.
Payments to the franchisor
| Item 5 / Item 7 payment | Standard or builder | Development | Timing and treatment |
|---|---|---|---|
| Initial Franchise Fee | $73,000 | $250,000 | Earned at signing; generally nonrefundable, subject to the 90% training-related refund provision in Item 5. |
| Logo office supplies and promotional items | $800 | $1,000 | Lump sum before opening; paid to the franchisor. |
| Total shown on the FDD cover as paid to franchisor | $73,800 | $251,000 | Included inside the applicable Item 7 total, not added on top. |
Item 5 also states that purchasing more than one franchise at the same time requires an additional $73,000 Initial Franchise Fee for each additional franchise. That multi-franchise amount is not part of the single-franchise Item 7 totals above. Source: 2025 FDD, Item 5, page 5.
Third-party and operating start-up categories
| Item 7 category | Low | High | What changes the amount |
|---|---|---|---|
| Training Expenses | $500 | $2,000 | Transportation, lodging, meals, living costs, and salary for attendees; training has been virtual since March 2020. |
| Equipment and fixtures — home office | $0 | $2,000 | Computer, fax software, telephone line, scanner, and printer if not already owned. |
| Equipment and fixtures — optional outside office | $0 | $2,000 | Furniture, equipment, and possible office construction; the note cites about $1,500 for basic furniture and equipment. |
| Deposits, insurance, utilities, licenses, professional fees, inventory, and prepaid expenses — home office | $0 | $1,000 | Varies with licensing, insurance, legal, accounting, utilities, and initial sales materials. |
| Same prepaid-expense group — optional outside office | $0 | $2,000 | May include a lease security deposit; the note allocates $1,500 for two months of rent. |
| Rent — optional outside office | $0 | $750 | The FDD note says small outside offices rent for about $350 to $750 per month. |
| Additional Funds — three months | $1,000 | $2,000 | Start-up expenses before opening and during the initial phase, including payroll and advertising. |
The third-party ranges are the same for all three formats. The only Item 7 differences are the Initial Franchise Fee and the logo office-supply amount. Source: 2025 FDD, Item 7, pages 10–13.
Additional Funds are already included in the official total. Do not add the $1,000 to $2,000 a second time. The FDD says this amount covers three months and names payroll and advertising, but it does not state that owner compensation, personal living expenses, or every possible operating expense is included.
When is the money paid?
For a standard or builder franchise, the 2025 FDD uses a staged Initial Franchise Fee schedule: $2,000 with the license application, $5,000 when the Franchise Agreement is signed, and the remaining $66,000 before training. The $66,000 figure is a derived calculation from the disclosed $73,000 fee minus the first two payments.
Review the disclosure before paying
The FTC Franchise Rule requires delivery of the FDD at least 14 calendar days before the buyer signs a binding agreement or pays the franchisor or an affiliate. See the FTC franchise buying guide.
Submit the $2,000 application deposit
The application says the deposit is credited toward the Initial Franchise Fee if a Franchise Agreement is completed. Cancellation or rejection treatment depends on the application terms and expenses incurred.
Pay $5,000 at Franchise Agreement signing
This is the second standard/builder installment. The Initial Franchise Fee becomes fully earned at signing, subject only to the limited 90% refund provision if the franchisor terminates during Introductory Training for qualification reasons.
Pay the standard/builder balance before training
The remaining $66,000 is due before training begins. Training expenses are incurred separately, and logo office supplies are due before opening.
Fund opening costs and the first three months
Equipment and optional office costs are paid as negotiated or incurred. Additional Funds are spent before opening and through the initial three-month operating period. Item 11 says the typical period from agreement or first payment to opening is about 60 days, subject to training availability.
For the development franchise, Item 5 and the Development Franchise Addendum say the $250,000 fee is payable at signing, while the Item 7 table displays the same $2,000 / $5,000 / pre-training installment pattern used for the other formats. The buyer should obtain a written payment schedule that reconciles those provisions before transferring funds. Sources: 2025 FDD, Item 5, page 5; Item 7, pages 11–12; Development Franchise Addendum.
Which fees continue after opening?
Every format pays ongoing fees, but the percentages and minimums are not identical. Standard and development franchises generally pay an 8% Royalty Fee and a 2% Marketing and Promotion Fund contribution; builder franchises pay 12% and 3%. All formats also pay a $120 monthly Software and Marketing Programs Fee. Percentage fees are based on the FDD definition of Gross Sales, not on profit.
| Ongoing fee | Standard / development | Builder | Basis and timing |
|---|---|---|---|
| Royalty Fee | 8% of monthly Gross Sales. Development rate falls to 7% for annual Gross Sales from $2,500,001 to $5,000,000 and 6% above $5,000,000. Minimum: $200 in months 7–29; $400 from month 30. | 12% of monthly Gross Sales. Minimum: $125 from month 7. | Payable monthly by the 10th day of the following month. |
| Marketing and Promotion Fund | 2% of monthly Gross Sales. Minimum: $50 in months 7–29; $100 from month 30. | 3% of monthly Gross Sales; no minimum. | Payable monthly by the 10th day of the following month. |
| Software and Marketing Programs Fee | $120 per month | $120 per month | Payable by the 10th day of the month for proprietary software, system access, storage, email, Pulse, and other programs. |
| Production Fees | 25% of revenue collected from a client when the franchisor provides analysis, report services, and post-audit services. | 30% on the same disclosed basis. | Item 6 states the fee basis but does not show a separate due date in the Production Fees row. |
This chart adds only the $120 software fee and the disclosed minimum Royalty Fee and Marketing Fund contribution. Percentage-based amounts can make the actual payment higher.
Derived calculation: standard/development months 7–29 = $120 software + $200 minimum royalty + $50 minimum marketing = $370; month 30+ = $120 + $400 + $100 = $620. Builder month 7+ = $120 + $125 + $0 marketing minimum = $245. These are not total monthly fees: Gross Sales percentages and Production Fees remain additional when applicable. Source inputs: 2025 FDD, Item 6, pages 6–9.
Item 11 says franchisees are not required to join a local or regional advertising cooperative. It also discloses required computer systems costing less than $1,500 from third parties and an optional support contract estimated at less than $100 annually. Those technology figures should not automatically be added to Item 7 if the same hardware is already captured in the equipment line. Source: 2025 FDD, Item 11, pages 21–22.
Which costs arise only after a specific event?
Item 6 includes several fees that are not part of ordinary monthly operating charges. They become relevant when a franchise renews, transfers, relocates, misses a deadline, needs additional training, or triggers an audit or default remedy.
Source: 2025 FDD, Item 6, pages 7–9; Item 17, pages 29–32. Renewal can require signing the then-current form of Franchise Agreement, which may contain materially different fees and terms.
Does Schooley Mitchell disclose a liquid-capital minimum or financing?
No numeric Liquid Capital or Net Worth minimum is stated in the 2025 FDD. The Confidential Qualification Report asks for assets, liabilities, Net Worth, unencumbered cash, intended funding sources, and borrowing needs, but it does not publish a minimum threshold. The official qualification form asks applicants to select the Liquid Capital Available, also without displaying a required minimum.
Item 10 states that 1073355 Ontario Limited does not offer direct or indirect financing and does not guarantee a note, lease, or obligation. A buyer who borrows must arrange financing independently; lender approval is not a franchisor commitment. Source: 2025 FDD, Item 10, page 16; Exhibit H.
Directory pages may publish cash or Net Worth thresholds, but those figures are not stated in the verified 2025 FDD. Ask the franchisor to identify any current financial qualification in writing and whether it differs by standard, builder, or development format.
What should a buyer verify before committing capital?
The official ranges are compact because this can be a home-based consulting business, but the FDD still leaves several buyer-specific amounts unresolved. The main diligence task is to reconcile the selected format, payment schedule, optional office decision, technology already owned, and expenses beyond the three-month Additional Funds allowance.
Cost structure in one view
A prospective U.S. buyer should distinguish four amounts: the $75,300 to $85,550 standard/builder Estimated Initial Investment, the $252,500 to $262,750 development Estimated Initial Investment, the format-specific Initial Franchise Fee, and the continuing Royalty Fee, Marketing and Promotion Fund contribution, Software and Marketing Programs Fee, and Production Fees. The largest unresolved questions are not a hidden average investment; they are the buyer's actual optional-office costs, funding needs beyond three months, and the contradictory development-fee timing provisions.