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Rod Works

Company Information

4275 Thanksgiving Way Suite 200 Lehi, Utah 84043

[email protected]

Rod Works Inc. was incorporated in Utah on February 24, 2003. Rod Works only does business under the name Rod Works Inc. and has no predecessor. Rod Works Inc. is the owner of the trade names and trademarks “Rod Works,” and “American Mercantile Company.” Rod Works principal business address is 4275 Thanksgiving Way, Suite 200, Lehi, Utah 84043, and its agents for service of process is Mark Tuttle, 4275 Thanksgiving Way, Suite 200, Lehi, Utah 84043, and as listed in EXHIBIT C to the Disclosure Document.

We franchise the nght to operate a business offenng quality retail home decor and gift items featunng unique home iron products The franchise or franchised business does business under the trade name. Rod Works, and also uses our other related service marks, trademarks or logos (our "Marks") The Rod Works franchised business includes services and products The Rod Works franchise typically requires between 1,600 to 2,600 square feet and is typically located near residential and business areas in a location with accessible parking The franchise operates using our standards, methods, procedures and specification, called our "System " We do operate a business of the type being franchised We are not involved in any other business activities

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

3/10

Investment Accessibility

3/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: N.A Maximum: N.A

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

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Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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