Year Business Began: 2008
Franchising Since: 2008
Headquarters: Lehi, Utah
Estimated Number of Units: 365
Franchise Description: Property Management Incorporated Franchise, LLC is the franchisor. Franchisees offer a broad spectrum of community association, commercial, residential, and vacation/short-term rental property management and real estate services. Franchisees will operate a PMI business, in a specific geographic area, using PMI’s name, logo and other trademarked and copyrighted materials, procedures, software solutions, property management software, processes and systems.
Training Overview: The franchisor will provide franchisees with the training program for the franchisee’s primary and additional pillars. The training program will take place remotely, via telephone, webinars, web-based tools, and instructional videos and tutorials. Franchisees will participate from their office or other location of their choosing and the franchisor will participate from its corporate headquarters. The training program occurs over a six-week period and is comprised of two components, being training and opener, with each requiring one hour of scheduled and supervised training conducted by conference call or webinar per week, in addition to several hours of on-the-job training and/or activities per week. Training and opener will be provided concurrently. Training and opener instructional materials include the franchisor’s PMiWAY, materials, webinars, and online information videos tutorials. The number of hours required for the training program may vary, depending on the franchisee’s business experience, real estate and property management experience, licenses held and existing business structure. Once franchisees have completed the training program, the franchisor requires franchisees or their operating principal and up to one other person of their choosing to participate in workshop, PMiLAUNCH, and PMiSPRINT. Thereafter, the franchisor require franchisees or their operating principal to participate from time-to-time in programs, seminars and continuing education. From time-to-time, the franchisor may provide what it calls “refresher courses.” Refresher courses may be held online, by webinar, conference call or in-person. The franchisor may hold an annual summit which, if held, will require franchisees to attend.
Territory Granted: Franchisees will be assigned a territory that is either a standard territory (population of 100,000 or greater, according to the most recent US Census data) or a local territory (population less than 100,000). Franchisees will not receive an exclusive territory. The territory will usually be delineated by city, county, state and/or United States Post Office zip code boundaries, boundary streets, and/or highways. Once established, the boundaries of the territory will not be adjusted without the franchisor’s written consent, regardless of whether the population of the territory increases or decreases over time.
Obligations and Restrictions: Franchisees do not have to participate personally in the direct operation of their business, though it is recommended that they do so. Franchisees are required to form a legal entity to operate the business and they must designate a person to be responsible for the day-to-day operation of the business (principal operator). The principal operator is a person, designated to act as the general manager of the business and who is authorized to oversee the management of the business and direct the delivery of property management services, leasing and brokerage services. The principal operator must be designated by the franchisee and approved by the franchisor. Franchisees must sell only those products and services approved by the franchisor and may not use the business, systems, or marks for any other purposes. Franchisees may offer other services and products not approved only after they have obtained the franchisor’s express written permission to do so.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years unless terminated sooner. Additional 10-year renewal franchise terms are available if all obligations for renewal are met.
Financial Assistance: The franchisor does not currently offer any direct or indirect financing to franchisees, but it may do so in the future. The franchisor does not guarantee any lease, note, or obligation for any franchisee.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $80,000 |
| Rent | $0 | $1,500 |
| Rental Improvements | $0 | $2,500 |
| Deposits | $0 | $2,500 |
| Primary Pillar Certification (Training Program, Workshop, PMiLAUNCH and PMiSPRINT; $5,000 for each additional pillar) | $0 | $3,800 |
| Equipment and Business Supplies | $500 | $3,000 |
| Computer Hardware and Software (including PMiSoft PMiWare, PMiPrograms, PMiSTR, PMiWorkFlow, Accounting Software (as required) | $675 | $5,950 |
| PMiBOOKS (different divisions listed below; only one will apply in the first year): ResidentialBOOKS AssociationBOOKS VacationBOOKS |
$0 $0 $0 |
$18,000 $26,200 $12,100 |
| Local Advertising Expenses (for period of 3 months) | $4,500 | $13,500 |
| Insurance | $750 | $3,000 |
| Professional Services | $0 | $1,500 |
| EPMC Conversion Fee | $1,000 | $10,000 |
| Initial Trust Account (deposit for short-term rental operations) | $500 | $1,000 |
| VOIP Telephone Equipment (3 months not including FCC fees and taxes) | $300 | $500 |
| Additional Funds (3 months) | $0 | $20,000 |
| ESTIMATED TOTAL | $53,225 | $205,050 |
| Type of Fee | Amount |
|---|---|
| Royalty | Monthly: (i) 5.0% of brokerage plus (ii) a tiered percentage of gross revenue (the greater of 7% or $350, $700, $1,050 based on territory sales quota), on gross revenue up to $35,000; plus 6% of gross revenue from $35,001- $75,000; plus 5% on gross revenue above $75,001), plus (iii) 0.5% on self-owned doors, units, and suites and 1% on self-owned keys of rent and leasing fees collected. |
| National Advertising Fee | 2.0% of gross revenue. |
| Local Advertising | Minimum of $1,500 per month and $1,000 per month for each additional pillar. (Digital marketing program counts toward the $1,500 and $1,000 for each additional pillar per month minimum.) |
| PMiBOOKS Bookkeeping Program | Minimum monthly fee is presently: (i) for doors and suites, the greater of (a) $15 per door/suite managed or (b) $100; (ii) for units, the greater of: (a) 20% of the management fee the franchisee is paid for managing units or (b) $75 per association plus an initial $3.00 per unit setup fee; and (iii) for keys, presently, the greater of (a) $50 per key managed or (b) $100, and $50 onboarding fee per key. |
| PMiSOFT Software (for franchisees that manage residential and commercial properties) | Presently, one-time setup fee of $300; no per door monthly fee. |
| PMiWARE Software (for franchisees that manage associations) | Presently, $35 per association and a one-time setup fee of $500. |
| PMiSTR Software (for franchisees that manage short-term rentals) | Presently, a one-time set-up fee of $500 for 1-5 keys or $700 for 5+ keys, (for EPMC franchisees, the set-up fee is generally $250 per key and the initial set up fee); and (i) a monthly software user fee that is the greater of (a) $25 flat fee or (b) $10.95 per key for keys 1-10, $8.95 for keys 11-30, $6.95 per key for keys 31-50, and $4.95 for keys 51+. For more than 2 users, there is a $5.00 per additional users per month fee and (ii) a monthly fee of 1% percent of the collected gross booking and guest fees. |
| Accounting Software | Presently, a monthly fee of $75 - $150 (based on the number of users). |
| PMiPrograms | Presently, a monthly fee of $80, plus $1.00 per door, suite, or key, and $0.10 per unit managed. |
| Audit Fee | If brokerage or gross revenue is understated by 5% or more, franchisees pay the costs of audit, a charge of 50% of the understated amount, and the royalties and fees (plus interest) that would have been owed on the understated amount. |
| Transfer Fee | $12,000 |
| Franchise Renewal | Presently, $10,000. |
| Late Fees, Non-sufficient Funds fees, or Interest on Late Payments | Presently, $50 per each day payment is late, plus highest applicable legal rate for open account business credit, or if there is no maximum, not less than the rate of 1.5% per month. The franchisor will pass on any on-sufficient fund fees for payments from franchisees to the franchisor that are charged to it. |
| Insurance | An annual premium of approximately $750 - $3,000. |
| Late Fee | If proof of insurance is not received by the franchisor prior to opening day or not maintained during term, franchisees will be assessed a late fee of $50 per day. |
| PMiWorkflow | Presently, an annual subscription of $270 per license. |
| Extraordinary Education Cost | The then current fee, which is presently a minimum of $600 to $800 per day, plus travel reimbursement. |
| Monthly Phone Service Fee | Presently, a one-time set up fee of $94.95 – $149.90 before FCC regulated fees and taxes, and $65.87 per month before FCC regulated fees and taxes. |
| Annual Summit Fee | The then current fee, which is presently $450 - $700 per attendee. |
| Trust Account Reconciliation Fee | Presently, $5.00 per door. |
| Compliance Fee | Presently, $25.00 per day if franchisees are out of compliance with the franchisor’s quality measures in the Franchise Agreement. |
| Broker fee (for residential and commercial pillars) | Presently can range for $0 to 30% of leasing fee. |
The above information has been compiled from the FDD of Property Management Inc. Year of FDD: 2022.
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