Sears Home Appliance FDD Summary
Type of Business
Franchises are offered for the right to independently own and operate a retail store that sells merchandise the franchisor authorize and designate for sale under the Sears® name (and certain merchandise marks) on a consignment basis (either outright purchase or lease-to-own). The different Store models are Hometown Model (a store that offers merchandise and services, including home appliances, tools, sporting goods and household goods, that is designed to serve markets that may not support a full-service big-box retailer), Showroom Model (a store that primarily offers and sells home appliances and related merchandise that are on display in a showroom-type setting), Appliance & Hardware Model (a store that offers a wide selection of merchandise categories with a focus on the offer and sale of home appliances, lawn and garden equipment, tools, home improvement products and products typically found at a hardware store, and the provision of proprietary in-store services such as blade sharpening, key cutting and screen repair) and Outlet Model (a store that offers and sells outlet-value merchandise at prices that are typically lower than manufacturer’s suggested retail prices).
Corporate Information
Sears Home Appliance Showrooms, LLC organized on April 13, 2009 as a Delaware limited liability company. Their principal business address is 5500 Trillium Boulevard, Suite 501, Hoffman Estates, Illinois 60192.
Investment
The total investment necessary to begin operation of an existing Hometown Model ranges from $116,000 to $358,000 if you lease the fixed assets of the Store from the franchisor and from $122,000 to $568,000 if you purchase the fixed assets of the Store from the franchisor. The total investment necessary to begin operation of a new Hometown Model ranges from $67,000 to $232,500 if you lease the fixed assets of the Store from the franchisor and from $83,000 to $567,500 if you purchase the fixed assets of the Store from the franchisor. The total investment necessary to begin operation of an existing Showroom Model ranges from $182,500 to $1,013,000. The total investment necessary to begin operation of a new Showroom Model ranges from $283,000 to $428,500. The total investment necessary to begin operation of an existing Appliance & Hardware Model ranges from $142,000 to $1,035,000. The total investment necessary to begin operation of a new Appliance & Hardware Model ranges from $422,500 to $811,000. The total investment necessary to begin operation of an existing Outlet Model ranges from $260,000 to $2,208,000. The total investment necessary to begin operation of a new Outlet Model ranges from $452,000 to $762,500.