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ACFN Franchise ProfileBusiness Opportunities > ATM Services |
What Are the Initial Investment Requirements for an ACFN Franchise?
To start an ACFN franchise, you will need to prepare for a significant initial investment. The total investment ranges from $37,838 to $421,060, with a franchise fee of $25,000. Additionally, you should have cash available between $37,838 and $59,921 and a net worth of at least $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they can meet both initial and ongoing expenses.
What Are the Ongoing Fees Associated with ACFN Franchise Ownership?
When you own an ACFN franchise, you will incur ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees are essential for maintaining brand standards and supporting marketing initiatives that drive traffic to your location. It’s important to factor these costs into your financial planning to maintain profitability in the long run.
What Is the Average Revenue Potential for ACFN Franchise Units?
ACFN franchises show promising revenue potential, with an average annual revenue per unit of $65,640 and a median of $67,082. However, revenue can vary widely, with the lowest annual revenue reported at $7,125 and the highest at $1,013,424. This variability highlights the importance of location, management, and market demand in determining your franchise's financial success.
How Quickly Can You Expect to Break Even with an ACFN Franchise?
Franchisees can anticipate a breakeven period of approximately 12 months, with an investment payback period of around 24 months. This timeline can be influenced by various factors, including operational efficiency and local market conditions. Understanding these timeframes can help you set realistic financial expectations as you embark on your franchise journey.
ACFN 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:
ACFN Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Units | 222 | 227 | 227 |
| Net Change YoY | 5 | 0 | |
| Franchised Units | 222 | 227 | 227 |
| Net Change YoY | 5 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The ACFN franchise offers a wide range of investment options, with initial costs ranging from $37,838 to $421,060. The initial franchise fee is set at $25,000, while ongoing royalties are 6% of gross sales. Additionally, a marketing fee of 1% is required, ensuring that franchisees benefit from a collective marketing strategy. To qualify, franchisees must have a net worth of at least $1,000,000 and cash reserves between $37,838 and $59,921.
Financial Performance
The average annual revenue per unit for ACFN franchises stands at $65,640, with a median revenue of $67,082. Revenue can vary significantly, with the lowest annual revenue recorded at $7,125 and the highest reaching $1,013,424. This demonstrates the potential for substantial earnings, depending on location and management. Franchisees can expect to break even within approximately 12 months and achieve full investment payback in around 24 months.
Franchise Growth
ACFN has shown steady growth in its franchised units, increasing from 222 in 2022 to 227 in both 2023 and 2024. Notably, there are currently no corporate-owned units, indicating a focus on franchise expansion. This growth trend reflects the brand's commitment to supporting franchisees and enhancing its market presence.
Operational Costs
Franchisees should be aware of the operational expenses associated with running an ACFN unit. Average annual running expenses total between $2,680,882 and $2,684,682. Key expenses include payroll and employee benefits, which amount to approximately $1,799,043, and selling, general, and administrative costs of about $879,939. Other costs include insurance, professional fees, and initial local marketing expenses.
Profitability Metrics
The financial metrics for ACFN reveal a gross profit margin of 17.83%, with an EBITDA of $65,856, representing 0.43% of total revenue. The cost of goods sold (COGS) accounts for 82.17% of revenue, emphasizing the importance of managing costs effectively to enhance profitability. Franchisees must focus on operational efficiency to maximize their earnings potential.
Franchise Support
ACFN provides comprehensive support to its franchisees, including training, marketing assistance, and ongoing operational guidance. This support is crucial for new franchisees, particularly those transitioning from other careers or industries. The franchise's commitment to helping franchisees succeed is evident in its structured training programs and resources aimed at optimizing unit performance and profitability.
Frequently Asked Questions
The initial investment for an ACFN franchise ranges from $37,838 to $421,060. This includes the franchise fee of $25,000 and other startup costs.