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Blimpie Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Is the Initial Investment for a Blimpie Franchise?
To open a Blimpie franchise, you can expect an initial investment ranging from $80,780 to $564,200. This includes a franchise fee of $19,900. Additionally, you should have cash reserves between $15,000 and $20,000 and a net worth of $300,000 to $500,000. Understanding these financial requirements is crucial for aspiring franchisees to ensure they are adequately prepared for the investment.
What Are the Ongoing Fees for a Blimpie Franchise?
Blimpie franchisees are required to pay a royalty fee of 6% on their gross sales, along with a marketing fee of 4%. These ongoing fees contribute to the brand’s advertising efforts and support services, which can help drive customer traffic and overall sales. It's important to factor these costs into your financial planning to maintain profitability.
What Is the Average Revenue Potential for a Blimpie Franchise?
Blimpie franchises have shown promising revenue potential, with an average annual revenue per unit reported at $263,686. The median revenue aligns with this figure, indicating a stable income stream for franchisees. However, revenues can vary significantly, with the lowest annual revenue at $67,015 and the highest reaching $1,297,000. Understanding this range can help franchisees set realistic financial goals.
How Long Does It Take to Break Even with a Blimpie Franchise?
Franchisees can expect to break even within approximately 12 months of opening their Blimpie unit. The investment payback period is estimated at 34 months, which provides a clear timeline for profitability. This relatively quick return on investment can be appealing for entrepreneurs looking to enter the food service industry.
Blimpie 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:
Blimpie 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 | 142 | 120 | 108 |
| Net Change YoY | -22 | -12 | |
| Franchised Units | 137 | 114 | 104 |
| Net Change YoY | -23 | -10 | |
| Corporate Units | 5 | 6 | 4 |
| Net Change YoY | 1 | -2 |
Investment Overview
The Blimpie franchise offers a low initial investment range of $80,780 to $564,200, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $19,900, while ongoing royalty fees are 6% of gross sales and a marketing fee of 4% is also required. Franchisees should have liquid assets between $15,000 and $20,000 and a net worth of $300,000 to $500,000 to qualify.
Financial Performance
Blimpie units generate an average annual revenue of $196,671, with a median revenue matching this figure. Revenue can vary widely, with the lowest annual revenue recorded at $67,015 and the highest reaching $1,297,000. Franchisees can expect to break even within 12 months and achieve a return on investment in approximately 34 months, providing a solid financial outlook for new owners.
Franchise Growth
The number of franchised Blimpie units has seen a decline in recent years, with 137 units in 2021, dropping to 114 in 2022, and further to 104 in 2023. In contrast, corporate units have fluctuated slightly, with 5 in 2021, 6 in 2022, and 4 in 2023. This trend indicates a need for strategic adjustments to enhance franchise growth and stability.
Operational Costs
Average operating expenses for Blimpie units total $194,664 annually. Key expenses include wages and benefits at $60,607, rent at $10,060, and professional fees at $15,139. Marketing efforts account for about $2,572, while promotional fund contributions add up to $51,867. Understanding these costs is crucial for effective financial management and profitability.
Corporate Background
Blimpie was founded in 1964 and has established itself as a prominent player in the sandwich franchise sector. With a focus on fresh ingredients and a customizable menu, Blimpie has garnered a loyal customer base. The corporate headquarters are located in Atlanta, Georgia, where they continue to support franchisees with training and operational guidance.
Marketing Strategy
Blimpie employs a marketing strategy that emphasizes local advertising and community engagement. Franchisees are required to contribute 4% of their gross sales to marketing efforts, supporting brand visibility and customer outreach. By leveraging both national campaigns and local initiatives, Blimpie aims to drive traffic and enhance brand recognition in competitive markets.
Frequently Asked Questions
The initial investment to open a Blimpie franchise ranges from approximately $80,780 to $564,200, which includes the franchise fee of $19,900 and other startup costs.