Frequently Asked Questions

Q: WHAT IS THE MINIMUM REQUIREMENT NEEDED TO OPEN A ELEPHANT IN THE ROOM STORE?

A: To ensure that you will be successful as a franchisee and that you can insure the necessary financing we do require that you have at least a minimum of $200,000 liquid assets (cash and marketable securities) and a $400,000 net worth. This requirement may actually be more if construction costs exceed the national average in the area of the country in which you would like to open.

Q: WHAT IS THE total upfront investment cost?

A: Your initial investment will be a $25,000 franchise fee. This amount covers the fees for the first 3 franchises that you open. If you desire to have more than three franchises, any additional store will be $10,000 each.

Q: How much does it cost to open a store?

A: The cost to build a single store, which does include the franchise fee and the initial working capital you need will range between $175,000 and $300,000. A full line item list of the costs is provided in item 7 of the Franchise Disclosure Document. Although in most cases, the majority of the cost is financed, lenders will require an upfront cash contribution of 20% to 30% based on the lender’s qualifications.

Q: May I buy a single store?

A: Unless a unique situation arises franchisees are required to buy a minimum of three franchise licenses.

Q: What is a Multi-unit Franchisee?

A: A multi-unit franchisee is a business owner who operates multiple locations and units within the same franchise system.

Q: Do you provide discounts for veterans?

A: Yes we do. Qualifying veterans can receive a 5% discount off of their total franchise fee of $25,000.

Q: how many corporate stores do you have?

A: We have 3 stores in our designated territory. At Elephant in the Room we do feel strongly that a franchisor should operate 3 stores. We test new ideas to improve the system in our own stores before introducing new ideas to franchisees.

Q: how Long has Elephant in the Room been in business?

A: Our founders Clay Clark, and Jonathan Barnett have been operating Elephant in the Room since 2012.

Q: how Big is a typical Store?

A: A normal store location is between 1,000 and 1,500 square feet, and must have 10 chairs.

Q: Who is responsible to select location or the store?

A: The location must be recommended by you, then ultimately approved by our leadership team.

Q: What training does corporate provide during the first year and beyond?

A: After you sign the contracts and become an actual franchisee, you will begin a training process. At Elephant in the Room, we train franchisees on the following business systems, aspects of the business and more:

• Customer Service
• Marketing
• Team Recruitment, Hiring and Firing
• Elephant in the Room Operations and Systems
• Culture Development
• Real Estate
• Leadership and Team Mentorship
• Sales
• Public Relations
• System Execution

**We also include on-going weekly coaching, accountability, and mentorship to all franchisees to ensure your success.
New franchisees will shadow the managers and assistant managers of an existing Elephant in the Room.

Q: Can you provide financial performance reports?

A: The Federal Trade Commission requires that all franchises provide this information in a very specific way in the Franchise Disclosure Document. You will receive that document from you development representative. Our item 19 will include gross sales averages for our stores and a more detailed layout of the expenses and revenues of our corporate owned locations.