16 frequently asked questions answered with data from the 2024 Franchise Disclosure Document.
The total initial investment to open a OpenWorks franchise ranges from $4K to $134K (2024 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for OpenWorks is $33K (2024 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the OpenWorks 2024 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, OpenWorks does not require franchisees to have dedicated real estate (2024 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisOpenWorks charges a royalty fee of 15.0% of gross sales (2024 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a OpenWorks franchise is approximately 21.1% of gross sales (2024 FDD). This includes the royalty fee, a 2.5% marketing/advertising fund contribution, and other recurring charges.
View full fees analysisOpenWorks has been involved in 10 litigation cases over the past 3 years (2024 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.
View full litigation analysisNo, the OpenWorks franchisor has no bankruptcy filings in their disclosure history (2024 FDD).
View full litigation analysisOpenWorks offers non-exclusive territory rights to its franchisees (2024 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisOpenWorks currently operates 414 locations (2024 FDD) (414 franchised, 0 company-owned). The system contracted by 32.7% over the past year. The 3-year compound annual growth rate is -17.1%.
View full growth analysisThe 1-year franchisee turnover rate for OpenWorks is 41.8% (2024 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisOpenWorks does not include an Item 19 financial performance representation in their FDD (2024 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for OpenWorks is 10 years (2024 FDD). Franchisees can renew 2 times for 10-year periods. The total potential term is 30 years.
View full contract analysisOpenWorks's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 75 miles of the former location (2024 FDD).
View full legal analysisYes, OpenWorks's franchise agreement requires mandatory arbitration for dispute resolution (2024 FDD). The agreement includes a jury trial waiver.
View full legal analysisOpenWorks provides 35 hours of initial training (2024 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisOpenWorks does not provide site selection assistance (2024 FDD). Franchisees are responsible for finding and securing their own location.
View full support analysis