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Benjamin Franklin Plumbing Franchise ProfileHome Services Franchises > Plumbing |
What is the Initial Investment for a Benjamin Franklin Plumbing Franchise?
To open a Benjamin Franklin Plumbing franchise, you will need an initial investment that ranges from $73,992 to $274,076. This includes a franchise fee of $43,000, which grants you the rights to operate under the brand. Additionally, you should be prepared for ongoing costs, including a royalty fee of 6% on your gross sales and a marketing fee of 1.5%. It's essential to have cash reserves between $40,000 and $60,000 to cover initial expenses and working capital.
What Are the Financial Performance Metrics of Benjamin Franklin Plumbing?
Benjamin Franklin Plumbing franchises demonstrate strong financial performance, with an average annual revenue of $3,072,783 per unit. The median annual revenue is $2,509,210, showcasing the potential profitability of the franchise. The lowest reported annual revenue is $35,421, while the highest reaches an impressive $26,053,457. Franchisees can expect to break even within 12 months, with an investment payback period of around 24 months, making it a potentially lucrative venture.
What Are the Required Qualifications for Franchisees?
Aspiring franchisees must meet specific financial qualifications to be considered for a Benjamin Franklin Plumbing franchise. A net worth of $500,000 to $1,000,000 is required, along with liquid capital of $40,000 to $60,000. This financial foundation ensures that franchisees can support their business during the initial stages and manage ongoing operational costs. It's also beneficial for candidates to have a strong business acumen and leadership skills to effectively run their franchise.
What Are the Average Running Expenses for a Benjamin Franklin Plumbing Franchise?
The average running expenses for a Benjamin Franklin Plumbing franchise can vary, with total annual costs estimated between $73,992 and $188,476. Key expenses include rent or lease costs ranging from $3,000 to $9,000, insurance between $2,000 and $4,000, and utilities estimated at $40,000 to $60,000. Additionally, marketing funds may require $12,000 to $24,000 annually. Understanding these costs is crucial for franchisees to manage their budget effectively and maintain profitability.
Benjamin Franklin Plumbing 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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Benjamin Franklin Plumbing 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 | 256 | 265 | 285 |
| Net Change YoY | 9 | 20 | |
| Franchised Units | 246 | 255 | 275 |
| Net Change YoY | 9 | 20 | |
| Corporate Units | 10 | 10 | 10 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Benjamin Franklin Plumbing franchise offers a low initial investment range from $73,992 to $274,076. The franchise fee is set at $43,000, with ongoing royalty fees of 6% and a marketing fee of 1.5%. Prospective franchisees should have a minimum cash requirement of $40,000 to $60,000 and a net worth of $500,000 to $1,000,000 to ensure financial stability upon entry into the franchise system.
Revenue Potential
Benjamin Franklin Plumbing franchises show promising revenue potential, with an average annual revenue of $3,072,783 per unit. The median annual revenue stands at $2,509,210, while the range of revenues varies significantly, from as low as $35,421 to as high as $26,053,457. These figures highlight the brand's ability to generate substantial income, making it an attractive opportunity for investors.
Franchise Growth
The franchise has demonstrated consistent growth over the years, increasing from 246 franchised units in 2021 to 275 in 2023. This upward trend indicates a strong market presence and demand for plumbing services under the Benjamin Franklin brand, providing franchisees with a supportive network and potential for expansion.
Financial Performance
The average Profit & Loss statement reveals a gross profit margin of 57.33%, with operating expenses also accounting for 42.67% of revenue. The EBITDA stands at $452,783, representing 14.73% of revenue. These metrics suggest that franchisees can expect a healthy return on investment while managing costs effectively.
Operational Costs
Franchisees should budget for various operational expenses, which include rent/lease ranging from $3,000 to $9,000, insurance between $2,000 and $4,000, and marketing funds of $12,000 to $24,000 annually. Utilities are estimated at $40,000 to $60,000, and additional funds for three months of operation should be considered, totaling between $40,000 and $60,000.
Breakeven and Payback
Franchisees can anticipate a breakeven period of approximately 12 months, with an investment payback timeline of about 24 months. This relatively quick return on investment is appealing to potential franchisees, as it allows them to recoup their initial investment and start generating profit in a short timeframe.
Frequently Asked Questions
The initial investment for a Benjamin Franklin Plumbing franchise ranges from $73,992 to $274,076, which includes the franchise fee of $43,000.