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Description
Investment Icon

What Are the Initial Investment Requirements for an ABRA Auto Body & Glass Franchise?

To open an ABRA Auto Body & Glass franchise, you should anticipate an initial investment ranging from $263,640 to $4,569,050. This includes a franchise fee of $35,000. It's essential to ensure you have sufficient cash available, as you'll need between $263,640 and $4,569,050 to cover startup costs. Additionally, a net worth of $100,000 to $1,000,000 is required to qualify for franchise ownership, making financial preparedness crucial for prospective franchisees.

Fees Icon

What Are the Financial Performance Metrics for ABRA Auto Body & Glass Units?

ABRA Auto Body & Glass franchises exhibit promising financial performance, with an average annual revenue of approximately $1,440,474 per unit. The median revenue is slightly higher at $1,500,000, while some units report revenues as low as $45,000 and others as high as $1,500,000. Franchisees can expect a breakeven time of around 12 months and an investment payback period of about 24 months, indicating a potentially lucrative opportunity for those who effectively manage their operations.

Revenue Icon

What Ongoing Fees Should Franchisees Expect?

Franchisees of ABRA Auto Body & Glass will incur ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can drive customer traffic and enhance overall profitability. Understanding these fees and incorporating them into your financial planning will be vital for ensuring long-term success as a franchisee.

Breakeven Icon

How Has ABRA Auto Body & Glass Grown Over Recent Years?

ABRA Auto Body & Glass has shown steady growth in its franchised units, increasing from 55 in 2020 to 63 in 2022. This growth trajectory suggests a strong demand for their services and a solid franchise model. With no corporate-owned units, the focus remains on franchise expansion, highlighting the brand's commitment to empowering franchisees and enhancing their operational capabilities. This growth can be a positive indicator for potential investors considering joining the ABRA franchise network.

ABRA Auto Body & Glass Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$35,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

3%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$263,640 - $4,569,050
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$263,640 - $4,569,050
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,440,474
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,500,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,500,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$45,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Automotive Franchises
Category icon A more specific division within the broader industry.

i Category:

Auto Repair
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Jonathan Fitzpatrick
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

7225 Northland Drive North, Suite 210 Brooklyn Park, Minnesota 55428
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2014
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

ABRA Automotive Systems LP

ABRA Auto Body & Glass Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

57
The number of locations owned by independent franchisees.

Franchised Units i

57
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2020 2021 2022
Total Units 55 57 63
Net Change YoY 2 6
Franchised Units 55 57 63
Net Change YoY 2 6
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The initial investment for an ABRA Auto Body & Glass franchise ranges from $263,640 to $4,569,050. This wide range reflects various factors, including location, size, and the specific requirements of each franchise unit. The initial franchise fee is $35,000, which is a standard entry cost for new franchisees looking to join this established brand.

Potential About

Revenue Potential

ABRA Auto Body & Glass franchises show promising financial performance, with average annual revenue per unit reported at $1,440,474 and a median of $1,500,000. The lowest annual revenue recorded is $45,000, while the highest reaches $1,500,000, showcasing a diverse range of operational success among franchisees.

Metrics About

Royalty and Marketing Fees

Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 3%. These fees contribute to the overall support and branding efforts of ABRA, ensuring franchisees benefit from a strong marketing presence and operational guidance.

Fees About

Financial Performance

The financial metrics for ABRA Auto Body & Glass indicate a gross profit margin of 61.6%, with operating expenses accounting for 81.7% of revenue. This results in an EBITDA of $264,804, which represents 18.3% of total revenue. Understanding these figures is crucial for franchisees to manage their operations effectively and optimize profitability.

Breakeven About

Breakeven and Payback Period

Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 24 months, making ABRA Auto Body & Glass a viable option for entrepreneurs looking for a relatively quick return on their investment.

Units About

Franchise Growth

ABRA Auto Body & Glass has demonstrated steady growth in its franchise network, increasing from 55 units in 2020 to 63 units in 2022. This consistent expansion reflects the brand's strong market presence and the confidence of franchisees in the business model, making it an attractive opportunity for new investors.

Frequently Asked Questions

The initial investment for an ABRA Auto Body & Glass franchise ranges from $263,640 to $4,569,050, which includes the franchise fee and other startup costs.