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Ameriprise Financial Franchise ProfileAccounting & Financial Franchises > Financial Planning |
What Are the Initial Investment Requirements for an Ameriprise Financial Franchise?
To open an Ameriprise Financial franchise, you will need to consider a range of initial investment costs. The franchise fee is set at $1,500, while the total initial investment can vary significantly, ranging from $11,620.50 to $126,506.50. It's essential to have a cash reserve that meets these requirements, as well as a net worth between $100,000 and $5,000,000. This financial foundation will help ensure you can cover startup costs and sustain your business as it grows.
What Are the Ongoing Fees Associated with an Ameriprise Financial Franchise?
As an Ameriprise Financial franchisee, you will be responsible for ongoing fees that contribute to the brand's marketing and operational support. A royalty fee of 9% of your revenue is required, along with a marketing fee of 1%. These fees are essential for maintaining the brand's visibility and ensuring you have access to the resources necessary for running your franchise effectively. It's vital to factor these costs into your financial planning to maintain profitability.
What Is the Average Revenue Potential for Ameriprise Financial Franchisees?
Ameriprise Financial franchisees can expect to see substantial revenue potential. The average annual revenue per unit is reported at $1,499,654, with a median annual revenue of $549,543. However, revenue can vary widely, with the lowest annual revenue recorded at $140,618 and the highest at an impressive $3,638,189. Understanding these figures can help you set realistic financial goals and evaluate the potential return on your investment.
What Is the Typical Breakeven and Investment Payback Period for Ameriprise Financial Franchisees?
For those considering an Ameriprise Financial franchise, it's important to know the expected timeframes for breakeven and investment payback. Franchisees typically reach breakeven within 24 months. Furthermore, the investment payback period is relatively quick, averaging around 12 months. These metrics can provide valuable insight into the franchise's financial performance and help you assess the viability of your investment in the long run.
Ameriprise Financial 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:
Ameriprise Financial 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 | 6243 | 6016 | 5888 |
| Net Change YoY | -227 | -128 | |
| Franchised Units | 4309 | 4221 | 4141 |
| Net Change YoY | -88 | -80 | |
| Corporate Units | 1934 | 1795 | 1747 |
| Net Change YoY | -139 | -48 |
Franchise Overview
Ameriprise Financial is a leading financial services firm with a strong franchise model that provides comprehensive financial planning and investment advisory services. With a focus on empowering clients to achieve their financial goals, Ameriprise has built a reputation for excellence and trust over the years. The franchise model allows entrepreneurs to leverage a well-established brand while benefiting from extensive training and support.
Investment Requirements
The initial investment to open an Ameriprise Financial franchise ranges from $11,620.50 to $126,506.50, depending on various factors such as location and specific business needs. The franchise fee is set at $1,500, with ongoing royalty fees of 9% of gross sales and a marketing fee of 1%. Prospective franchisees must have a net worth of $100,000 to $5,000,000, ensuring they are well-positioned to invest in the business.
Financial Performance
Ameriprise Financial franchises generally report robust financial performance, with average annual revenue per unit reaching $1,499,654. The highest reported annual revenue can soar to $3,638,189, while the lowest stands at $140,618. This range highlights the potential for significant earnings, especially for franchisees who effectively leverage the brand's resources and support.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 24 months of operation. The investment payback period is notably favorable, averaging around 12 months. This quick return on investment is a compelling factor for aspiring franchisees, allowing them to recoup their initial costs relatively swiftly.
Operational Support
Ameriprise Financial provides comprehensive operational support to its franchisees, including training programs, access to proprietary technology, and ongoing business development resources. This support is designed to help franchisees effectively manage their operations, enhance client relationships, and ultimately drive profitability.
Market Presence
As of 2022, Ameriprise Financial boasts a strong market presence with a total of 5,888 units, comprising 4,141 franchised units and 1,747 corporate-owned units. This established footprint reflects the brand's stability and growth potential, making it an attractive option for entrepreneurs looking to enter the financial services sector.
Frequently Asked Questions
The initial investment for an Ameriprise Financial franchise ranges from $11,620.50 to $126,506.50, which includes the franchise fee of $1,500 and other startup costs.