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BeeHive Homes Franchise ProfileHealthcare & Senior Care > Senior Living Facilities |
What Are the Initial Investment Requirements for a BeeHive Homes Franchise?
To open a BeeHive Homes franchise, you will need to prepare for a substantial initial investment ranging from $3,400,000 to $5,100,000. This includes a franchise fee of $75,000, along with ongoing royalty and marketing fees, both set at 5% of revenue. Additionally, you should have cash reserves between $2,875,000 and $4,500,000 and a net worth between $3,400,000 and $5,100,000 to meet the financial prerequisites for franchise ownership.
What is the Average Revenue Potential for a BeeHive Homes Franchise?
BeeHive Homes franchises have an average annual revenue of approximately $1,200,000 per unit, with a median revenue of about $1,050,000. The revenue can vary significantly, with the lowest reported annual revenue at $1,000,000 and the highest reaching $1,800,000. This revenue potential underscores the opportunity for franchisees to achieve a profitable business within the senior living sector.
How Long Does it Typically Take to Break Even with a BeeHive Homes Franchise?
Franchisees can expect to reach their breakeven point in about 15 months after opening their BeeHive Homes location. This relatively short timeframe is advantageous for new franchisees, as it allows for quicker recovery of the initial investment. Moreover, the investment payback period is projected at 24 months, enabling franchise owners to start seeing returns on their investment within a reasonable timeframe.
What Are the Average Operating Expenses for a BeeHive Homes Franchise?
Operating a BeeHive Homes franchise involves various expenses, totaling around $220,700 annually. Key costs include insurance ($15,600), utilities ($5,200), professional fees ($3,200), and miscellaneous operating expenses ($186,600). Understanding these expenses is crucial for franchisees to manage their financial performance effectively and ensure sustainable profitability in their operations.
BeeHive Homes 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:
BeeHive Homes 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 | 198 | 201 | 199 |
| Net Change YoY | +3 | -2 | |
| Franchised Units | 198 | 201 | 199 |
| Net Change YoY | +3 | -2 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Investment Overview
The initial investment for a BeeHive Homes franchise ranges from $3,400,000 to $5,100,000, which includes a franchise fee of $75,000. Potential franchisees should be prepared to have a cash requirement between $2,875,000 and $4,500,000. This investment is aimed at establishing a quality assisted living facility that meets the standards of the BeeHive Homes brand.
Revenue Potential
BeeHive Homes franchises have shown promising revenue figures, with average annual revenue per unit at $1,200,000. The median annual revenue stands at $1,050,000, while the revenue can vary from $1,000,000 to $1,800,000 per unit. These figures highlight the potential for strong financial performance within the franchise model.
Franchise Growth
The BeeHive Homes franchise has demonstrated steady growth over recent years, with 198 franchised units in 2021, increasing to 201 in 2022, and slightly decreasing to 199 in 2023. This consistent presence in the market indicates a stable demand for their services and a solid foundation for future expansion.
Financial Performance
The average profit and loss metrics reveal a gross profit margin of 40%, translating to an average gross profit of $480,000 per unit annually. Operating expenses account for 30% of revenue, allowing for an EBITDA of $120,000, or 10% of total revenue. These figures provide a clear picture of the financial health of a typical BeeHive Homes franchise.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 15 months of operation. The investment payback period is estimated at 24 months, making it a relatively attractive opportunity for those looking to enter the assisted living market with a proven business model.
Ongoing Fees
BeeHive Homes franchisees are subject to a royalty fee of 5% of gross sales, along with a marketing fee of 5%. These ongoing fees are designed to support the brand's marketing efforts and operational support, ensuring franchisees are well-equipped to succeed in their local markets.
Frequently Asked Questions
The initial investment for a BeeHive Homes franchise ranges from $3,400,000 to $5,100,000, which includes a franchise fee of $75,000.