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Description
Investment Icon

What is the Initial Investment for a BoxDrop Franchise?

To start a BoxDrop franchise, the initial investment ranges between $25,000 and $202,400. This includes a franchise fee of $15,000. Potential franchisees should also be prepared for additional costs, as cash requirements range from $67,000 to $115,900. Understanding these financial commitments is crucial for anyone considering this business opportunity.

Fees Icon

What are the Financial Performance Metrics of BoxDrop?

BoxDrop franchises have shown promising financial metrics, with an average annual revenue per unit of $200,000 and a median annual revenue of $135,000. The lowest recorded annual revenue is $75,000, while the highest reaches up to $1,500,000. Notably, the average EBITDA stands at $605,858, indicating a healthy profit potential for franchisees.

Revenue Icon

What are the Ongoing Fees Associated with BoxDrop?

BoxDrop franchisees are required to pay a royalty fee of 2% on their gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand presence and support. Franchisees should factor these costs into their financial planning to ensure sustainable profitability.

Breakeven Icon

How Quickly Can You Expect to Break Even with a BoxDrop Franchise?

The breakeven time for a BoxDrop franchise is approximately 24 months, with an investment payback period of around 14 months. This timeline can vary based on location and operational efficiency, but these figures provide a solid benchmark for aspiring franchisees to gauge their potential return on investment.

BoxDrop 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$100,000 - $200,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

14 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$15,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

2%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

24 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$25,000 - $202,400
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$67,000 - $115,900
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$200,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$135,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,500,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$75,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Retail
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Carleton Scott Andrew
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

6221 Riverside Drive, #2N, Dublin, Ohio 43017
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2012
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

BoxDrop Franchising, LLC

BoxDrop Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

160
The number of locations owned by independent franchisees.

Franchised Units i

159
The number of locations owned and run by the franchisor.

Corporate Units i

1
Units 2021 2022 2023
Total Units 81 153 160
Net Change YoY 72 7
Franchised Units 80 152 159
Net Change YoY 72 7
Corporate Units 1 1 1
Net Change YoY 0 0
Investment About

Initial Investment

The BoxDrop franchise offers a low initial investment range of $25,000 to $202,400, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $15,000, which is part of the overall startup costs. Franchisees should also prepare for additional cash requirements ranging from $67,000 to $115,900 to cover initial operational expenses.

Potential About

Revenue Potential

Franchisees can expect an average annual revenue of approximately $200,000 per unit, with a median revenue of $135,000. This financial potential is supported by a diverse revenue range, with some units generating as low as $75,000 and others achieving up to $1,500,000 annually. Such figures indicate a promising opportunity for those looking to invest in the BoxDrop brand.

Metrics About

Royalty and Marketing Fees

BoxDrop franchisees are required to pay a royalty fee of 2% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall support and resources provided by the franchisor, which helps franchisees effectively market their businesses and maintain brand integrity.

Fees About

Breakeven and Payback Period

The breakeven time for BoxDrop franchisees is estimated at 24 months, providing a clear timeline for when they can expect to recoup their initial investments. Additionally, the average investment payback period is around 14 months, indicating a relatively quick return on investment for new franchise owners.

Breakeven About

Growth and Expansion

BoxDrop has shown consistent growth, increasing from 80 franchised units in 2021 to 159 in 2023. This upward trend reflects the brand's expanding market presence and the increasing popularity of its business model, making it an attractive option for potential franchisees looking to join a growing network.

Units About

Average Operating Expenses

Franchisees should anticipate annual operating expenses totaling approximately $100,500. Key expense categories include local marketing at $9,000, advertising at $24,000, and additional funds for three months of operation at $60,000. Understanding these costs is essential for effective financial planning and management within the BoxDrop franchise system.

Frequently Asked Questions

The initial investment for a BoxDrop franchise ranges from $25,000 to $202,400, depending on various factors such as location and store size.