Armoloy franchise
2024 filing · August 1, 2024Fewer locationsShares sales figures
Armoloy at a glance
An industrial metal-treatment business that applies the Armoloy coating process to customers' metal parts to make them harder, slicker and more corrosion-resistant. At the end of 2023 there were 12 Armoloy locations in the US, 9 franchised and 3 company-owned.
The business
- Industry
- Business services
- Franchisor
- The Armoloy Corporation
- The company that sells the franchises
What you pay
- Cost to open
- $1.02M–$3.15M
- Fee, build-out and opening working capital
- Franchise fee
- $125,000
- Paid once, when you sign
- Royalty
- 7%–10%
- A service fee of 7% to 10% of gross revenue depending on the product or service, with a $1,250 monthly minimum, plus an advertising fee of the greater of $500 or 0.5% a month
- Brand fund
- Yes
- 0.5% of monthly gross revenue or $500, whichever is more, paid monthly
- Renewal fee
- $10,000.
- When the agreement ends and you sign again
- Agreement length
- 10 years
Where it is
- US locations, 2023
- 12
- Franchised and company-owned
- Franchised
- 9
- Company-owned
- 3
- Change in 3 years
- −1
- Franchised locations, 2021–2023
- States
- 9
- Most in Pennsylvania, Rhode Island and Texas
From The Armoloy Corporation’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Armoloy among all franchises with the same figure.
| Figure | Armoloy | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $2,086,400 | Costs more than 93% of franchises |
| Franchise feePaid once, when you sign | $125,000 | Higher than 99% of franchises |
| RoyaltyShare of sales paid to the franchisor | 10% | Higher than 95% of brands with a set rate |
| US locationsFranchised and company-owned | 12 | Fewer than 58% of franchises |
How much a Armoloy franchise costs
Opening one Armoloy costs an estimated $1,023,300 to $3,149,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are real property, purchased ($350,000 to $2,000,000) and equipment, fixtures, other fixed assets, construction, remodeling, real property improvements ($400,000 to $700,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $125,000 | ||
| Training Expenses | $10,000 | $20,000 | |
| Real Property, purchased | $350,000 | $2,000,000 | |
| Equipment, fixtures, other fixed assets, construction, remodeling, real property improvements | $400,000 | $700,000 | |
| Initial Inventory | $15,000 | $50,000 | |
| Start-up Supplies | $5,000 | $10,000 | |
| Advertising | $40,000 | $60,000 | |
| Insurance | $15,000 | $30,000 | |
| Permits and Licenses | $7,500 | $15,000 | |
| Additional Funds – 3 months | $55,800 | $139,500 | |
| Total | $1,023,300 | $3,149,500 | |
Source: The Armoloy Corporation, 2024 filing, page 13
Armoloy franchise fee
The franchise fee is $125,000. You pay it when you sign the franchise agreement.
Source: The Armoloy Corporation, 2024 filing, page 8
Royalty and ongoing fees
| Royalty | A service fee of 7% to 10% of gross revenue depending on the product or service, with a $1,250 monthly minimum, plus an advertising fee of the greater of $500 or 0.5% a month. |
|---|---|
| Brand or marketing fund | 0.5% of monthly gross revenue or $500, whichever is more, paid monthly. |
| Transfers | 25% of the initial fee or $12,500, whichever is greater. |
| Renewal Fee | $10,000. |
| Additional Training or Assistance | Currently, up to $1,000 per day ($125/hour). |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: The Armoloy Corporation, 2024 filing, page 9
Other fees as filed, from pages 9–10. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Armoloy publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: The Armoloy Corporation, 2024 filing, page 33
SBA loans to Armoloy franchisees
Lenders approved one SBA 7(a) loan for a Armoloy franchisee in 2001, for $310K. It was paid in full.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2023 / 2021–2023. Typical means the median: half of brands are above it, half below.
| Measure | Armoloy | Typical business services brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | 0% / −10% | 0% / +3.6% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 10% | 5.9% / 25% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical business services brand is the median of the 114 brands in business services franchises with three years of counts.
How Armoloy compares
Of the 324 business services franchises on this site, Armoloy is the 322nd cheapest to open and the 192nd largest by number of locations.
| Figure | Armoloy | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $1.02M | $77K | $222K |
| Cost to open, high end | $3.15M | $136K | $477K |
| Franchise fee | $125K | $45K | $40K |
| Royalty | 10% | 7% | 6% |
| US locations | 12 | 32 | 21 |
| Shares earnings figures | Yes | 187 of 324 | 2,147 of 3,352 |
Typical is the median across the 324 brands in business services franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 10 (0) | 3 | 0 | 0 |
| 2022 | 9 (−1) | 3 | 0 | −1 |
| 2023 | 9 (0) | 3 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: The Armoloy Corporation, 2024 filing, page 35
Where Armoloy locations are
At the end of 2023, Armoloy had locations in 9 states. The most are in Pennsylvania, Rhode Island and Texas.
- Pennsylvania2
- Rhode Island2
- Texas2
- Connecticut1
- Illinois1
- Michigan1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Pennsylvania | 2 | 0 | 2 |
| Rhode Island | 0 | 2 | 2 |
| Texas | 2 | 0 | 2 |
| Connecticut | 1 | 0 | 1 |
| Illinois | 0 | 1 | 1 |
| Michigan | 1 | 0 | 1 |
| New York | 1 | 0 | 1 |
| Ohio | 1 | 0 | 1 |
| South Carolina | 1 | 0 | 1 |
Source: The Armoloy Corporation, 2024 filing, page 36
Who owns Armoloy?
Armoloy franchises are sold by The Armoloy Corporation.
From The Armoloy Corporation’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: The Armoloy Corporation, 2024 filing, litigation on page 8, bankruptcy on page 8
Armoloy filings
The figures on this page come from The Armoloy Corporation’s 2024 filing, issued August 1, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | August 1, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
