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ABRA Auto Body & Glass Franchise ProfileAutomotive Franchises > Auto Repair |
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.
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.
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.
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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
ABRA Auto Body & Glass Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| 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 |
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.
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.
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.
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 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.
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.