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Archadeck Franchise ProfileHome Services Franchises > Landscaping |
What Are the Initial Investment Requirements for an Archadeck Franchise?
To open an Archadeck franchise, you should prepare for an initial investment ranging from $120,400 to $139,300. This includes a franchise fee of $59,500, along with additional costs for equipment, inventory, and working capital. It's essential to have a net worth between $300,000 and $1,000,000 to qualify for ownership. Understanding these financial commitments will help you assess your readiness to enter the franchise system.
What Are the Ongoing Fees Associated with an Archadeck Franchise?
As an Archadeck franchisee, you will be required to pay a royalty fee of 6.5% on your gross sales, in addition to a marketing fee of 1.5%. These ongoing fees contribute to brand support and marketing efforts that can drive customer traffic to your business. Being aware of these fees is crucial for budgeting and ensuring your franchise's financial health over time.
What Is the Financial Performance of an Archadeck Franchise?
On average, Archadeck franchise units generate annual revenues of approximately $2,037,549, with a median revenue of $1,306,500. The lowest annual revenue recorded is $139,500, while the highest reaches $9,655,500. This range illustrates the potential for profitability, but success will depend on factors such as location, management, and market demand.
How Quickly Can You Expect to Break Even with an Archadeck Franchise?
Franchisees can anticipate breaking even within approximately 12 months of operation. This quick payback period is attractive for prospective investors, as it reflects the potential for rapid return on investment. However, achieving this timeline will require effective management and a strong marketing strategy to attract customers and drive sales.
Archadeck 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.
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Archadeck Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 66 | 70 | 86 |
| Net Change YoY | 4 | 16 | |
| Franchised Units | 63 | 70 | 86 |
| Net Change YoY | 7 | 16 | |
| Corporate Units | 3 | 0 | 0 |
| Net Change YoY | -3 | 0 |
Initial Investment
The Archadeck franchise requires an initial investment ranging from $120,400 to $139,300. This includes a franchise fee of $59,500, ensuring that franchisees have access to the brand's resources and support from the outset.
Financial Performance
Archadeck franchises show strong financial potential, with an average annual revenue of $2,037,549 per unit. The median annual revenue stands at $1,306,500, while the revenue range varies significantly, from a low of $139,500 to a high of $9,655,500, indicating diverse operational success among franchisees.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6.5% of gross sales, along with a marketing fee of 1.5%. These fees contribute to the ongoing support and national marketing efforts that help drive brand visibility and customer engagement.
Breakeven and Payback Period
Archadeck franchises typically achieve breakeven within 12 months. This quick turnaround is appealing for new investors, as it indicates a potentially rapid return on investment and the ability to start generating profit soon after opening.
Franchise Growth
The Archadeck franchise has demonstrated consistent growth, increasing from 63 franchised units in 2021 to 86 in 2023. This upward trend reflects the brand's expanding market presence and the increasing demand for outdoor living solutions among consumers.
Operational Expenses
Average annual operating expenses for Archadeck units total approximately $637,695. Key expenses include salaries, marketing, and various operational costs, which are essential for maintaining efficient business operations and delivering quality services to customers.
Frequently Asked Questions
The initial investment for an Archadeck franchise ranges from $120,400 to $139,300, which includes the franchise fee of $59,500.