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Schooley Mitchell
Schooley Mitchell franchises provide cost reduction consulting services to business clients, reviewing expenses in categories such as telecommunications, merchant services, shipping, waste management, and more. Franchisees prepare reports summarizing current costs and proposed solutions, then advise clients on implementing improvements to reduce costs. The business model involves granting franchises for full-time professional consulting offices, part-time builder franchises, or development franchises with satellite locations, targeting virtually all businesses seeking operational cost savings.
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Franchise Costs
8% royalty + 2% ad fund (standard; mins $200-$400/mo royalty, $50-$100/mo ad after initial months); builder 12% + 3%
Financial Performance
Item 19 Financial Performance
Data Based On: 240 U.S. and Canadian franchisees during the 12 months ending February 28, 2025, separated into Full-Time and Part-Time categories.
* Calculated overall weighted average gross revenue: (79 Full-Time units × $223,544 + 161 Part-Time units × $14,743) / 240 total units = $83,473.33. Overall median gross revenue could not be calculated from the provided segmented medians. Revenue top and bottom quartiles are based on the Full-Time Franchisees data only, as segmented quartile data was not available for Part-Time Franchisees.
Extracted Item 19 Section
Avg. Revenue: $83,473
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Unlock financial performance dataSchooley Mitchell Franchise Analysis
What if you could build a consulting empire by simply spotting cost savings for other businesses, no inventory required? Schooley Mitchell's unique model has powered steady expansion since 2004, with Item 19 finally revealing average gross revenues and a history of SBA financing that speaks volumes about franchisee commitment. Yet amid one notable legal hiccup, does this data paint a picture of reliable returns or hidden hurdles?
Item 7 in the 2025 FDD pegs initial investment at $70,500-$85,550, including a $73,000 franchise fee, making entry relatively low-barrier for a professional services play. Ongoing fees hit 8% royalty plus 2% ad fund, with minimums of $200-$400 monthly royalty and $50-$100 ad after ramp-up; builder models spike to 12%+3%. Item 19 discloses average gross revenue of $83,473 across units, a modest but achievable figure for part-time or full-time operators targeting expense categories like telecom and shipping. With 258 locations (257 franchised, 1 corporate) and growth from 201 to 227 units (+13%) between 2023-2024, plus 67 projected new units, the system shows momentum, though international presence from Canadian roots may influence U.S. scalability.
SBA data adds grit: 64 loans averaging $133,503 but with a 17.2% default rate, higher than many peers, signaling real capital needs and some execution risks. A single litigation note involves a former franchisee claiming misrepresentation under Ontario's Arthur Wishart Act, settled with rescission—isolated but worth scrutinizing disclosure practices. For buyers eyeing flexible, recession-resistant consulting, these numbers suggest $83K averages could yield solid owner-operator profits after fees, but validate local demand and builder vs. standard models before committing.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Schooley Mitchell Compares
Key Insights
- Lower than average SBA loan default rate in Business Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Schooley Mitchell Current | $71K – $86K | $73K | 8.0% | 258 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 198 franchises | $121K – $289K | $47K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Schooley Mitchell franchisees (2015 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
64 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
324 franchisee contacts on file from official FDD filings.
324 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
One dispute with a former franchisee alleging misrepresentation and failure to comply with franchise disclosure laws (Arthur Wishart Act), resulting in rescission of the franchise agreement and a settlement payment.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Schooley Mitchell franchise ranges from $70,500 to $85,550. This includes a franchise fee of $73,000. Ongoing royalty fees are 8.0% of gross sales.
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