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Beef 'O' Brady's Franchise ProfileFood Franchises > Casual Dining |
What Are the Initial Investment Requirements for a Beef 'O' Brady's Franchise?
To open a Beef 'O' Brady's franchise, potential franchisees should prepare for an initial investment ranging from $812,850 to $1,475,375. This investment includes a franchise fee of $25,000 and requires liquid cash of $200,000 to $250,000. Additionally, franchisees must have a net worth between $500,000 and $1,000,000 to qualify, ensuring they have the financial stability to support their new venture.
What Are the Ongoing Fees Associated with a Beef 'O' Brady's Franchise?
Franchisees of Beef 'O' Brady's are subject to ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 2.5%. These fees contribute to the overall operational costs and support the franchise's marketing and promotional efforts. Franchisees should factor these costs into their financial planning to ensure sustainable profitability.
What Is the Average Revenue Potential for a Beef 'O' Brady's Franchise?
The average annual revenue for a Beef 'O' Brady's franchise unit is approximately $1,682,830, with a median revenue of $1,572,776. This indicates a strong revenue potential, although actual earnings can vary significantly, with the lowest reported annual revenue being $631,901 and the highest reaching $1,682,830. Understanding these figures can help franchisees set realistic financial expectations.
What Is the Expected Breakeven Time for a Beef 'O' Brady's Franchise?
Franchisees can expect to reach breakeven within approximately 24 months of operation. This timeline is crucial for financial planning, as it indicates how long it may take to recover the initial investment and start generating profit. Additionally, the investment payback period aligns with the breakeven time, emphasizing the importance of effective management and operational efficiency during the initial years.
Beef 'O' Brady's 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:
Beef 'O' Brady's 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 | 139 | 138 | 134 |
| Net Change YoY | -1 | -4 | |
| Franchised Units | 111 | 108 | 102 |
| Net Change YoY | -3 | -6 | |
| Corporate Units | 28 | 30 | 32 |
| Net Change YoY | +2 | +2 |
Initial Investment
The initial investment required to open a Beef 'O' Brady's franchise ranges from $812,850 to $1,475,375. This includes the franchise fee of $25,000, which grants you access to the brand and operational support. Potential franchisees should also prepare for additional costs such as equipment, signage, and initial inventory, which are essential for a successful launch.
Financial Performance
Beef 'O' Brady's franchises have an average annual revenue of approximately $1,682,830, with a median revenue of $1,572,776. The revenue range varies significantly, with the lowest annual revenue reported at $631,901 and the highest at $1,682,830. These figures indicate the potential profitability of the franchise, but actual performance may vary based on location and management.
Breakeven and Payback
Franchisees can expect to reach breakeven within 24 months of operation. This timeline is crucial for new owners, as it signifies the point at which revenues cover initial investments and ongoing expenses. Additionally, franchisees can anticipate recovering their investment within the same 24-month period, making Beef 'O' Brady's a potentially attractive option for aspiring entrepreneurs.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 2.5%. These fees are essential for maintaining brand standards and funding collective marketing efforts that drive customer traffic to all locations. Understanding these ongoing financial commitments is vital for effective budgeting and financial planning.
Required Financial Qualifications
To qualify for a Beef 'O' Brady's franchise, potential owners must have a net worth ranging from $500,000 to $1,000,000. Additionally, franchisees should have liquid cash available between $200,000 and $250,000 to cover initial expenses and ensure adequate working capital during the startup phase.
Franchise Growth
As of 2023, there are 102 franchised units of Beef 'O' Brady's, reflecting a gradual decline from 111 units in 2021. However, corporate units have increased from 28 to 32 in the same timeframe. This trend highlights the brand's focus on corporate development while managing franchisee growth, which may influence potential investors' decisions regarding market saturation and opportunities for new locations.
Frequently Asked Questions
The initial investment for a Beef 'O' Brady's franchise ranges from $812,850 to $1,475,375. This includes the franchise fee, equipment, and other startup costs.