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Annex Brands Retail Centers Franchise ProfileBusiness Services Franchises > Shipping & Packaging |
What is the Initial Investment for an Annex Brands Retail Center Franchise?
To start your journey with an Annex Brands Retail Center franchise, you should prepare for a range of initial investment costs. The franchise fee is set at $14,975, with total initial investments varying between $33,555 and $319,780. It's essential to have cash on hand, which can range from $33,555 to $243,805, and a net worth of between $200,000 and $500,000. This financial foundation is crucial for securing your franchise and ensuring you can cover operational costs as you get started.
What Are the Ongoing Fees Associated with an Annex Brands Franchise?
Owning an Annex Brands Retail Center franchise comes with ongoing fees that you'll need to budget for. There's a royalty fee of 5% on your gross sales, along with a marketing fee of 2%. These fees contribute to the overall operational support and brand marketing efforts, helping to drive customer engagement and sales. Being aware of these fees will help you manage your cash flow effectively as you grow your business.
What is the Average Revenue Potential for an Annex Brands Retail Center Franchise?
The revenue potential for an Annex Brands Retail Center franchise is notable, with an average annual revenue of $382,000 per unit. The median annual revenue is slightly lower at $342,000, while revenues can range significantly, from as low as $43,000 to as high as $1,530,300. Understanding these figures can help you set realistic financial goals and expectations as you plan for your franchise's growth.
How Quickly Can You Expect to Break Even with an Annex Brands Franchise?
When investing in an Annex Brands Retail Center franchise, it's important to know the financial timeline. Franchisees can expect to reach breakeven within approximately 12 months. Additionally, the investment payback period is around 8 months, which indicates a relatively quick return on your initial investment. This timeline can be an encouraging factor for aspiring franchise owners looking to achieve profitability in a competitive market.
Annex Brands Retail Centers 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:
Annex Brands Retail Centers Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 182 | 180 | 176 |
| Net Change YoY | -2 | -4 | |
| Franchised Units | 181 | 180 | 176 |
| Net Change YoY | -1 | -4 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Initial Investment
The Annex Brands Retail Centers franchise offers a range of initial investment options, with costs varying from $33,555 to $319,780. This flexibility allows aspiring franchisees to assess their financial capabilities and choose an investment level that aligns with their business goals. The initial franchise fee is set at $14,975, making it accessible for those looking to enter the franchise market.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall support and resources provided by the franchisor, ensuring that franchisees can effectively promote their business while benefiting from the brand’s established reputation.
Financial Performance
The average annual revenue per unit for Annex Brands Retail Centers is approximately $382,000, with a median revenue of $342,000. This financial performance indicates strong earning potential for franchisees, with some units generating as much as $1,530,300 annually. Understanding these figures can help prospective franchisees evaluate the viability of their investment.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation, which is a favorable timeframe for new business owners. Additionally, the average investment payback period is around 8 months, allowing franchisees to recoup their initial investment relatively quickly and start generating profit sooner.
Franchise Growth
As of 2023, the Annex Brands Retail Centers franchise has a total of 176 franchised units, down from 181 in 2021. This slight decline in the number of units may reflect market adjustments or strategic changes within the franchise system. Understanding growth trends is essential for potential franchisees when assessing the brand's stability and future prospects.
Corporate Structure
Annex Brands operates under a well-defined corporate structure, with a focus on supporting its franchisees through various resources and training programs. The company emphasizes a collaborative approach, ensuring that franchisees have access to the tools and guidance necessary for successful operations, which is critical for long-term growth and sustainability in the competitive retail landscape.
Frequently Asked Questions
The initial investment for an Annex Brands franchise ranges from $33,555 to $319,780, which includes the franchise fee of $14,975.