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Cartridge World Franchise ProfileBusiness Services Franchises > Printing Services |
What Are the Initial Investment Requirements for a Cartridge World Franchise?
To open a Cartridge World franchise, you’ll need to prepare for a range of initial investment costs. The total investment can vary significantly, with a low end of $75,150 and a high end reaching $226,800. This includes a franchise fee of $50,000. Additionally, you should have cash readily available between $75,150 and $106,800 and meet a net worth requirement that ranges from $100,000 to $1,600,207. This financial groundwork is essential for setting up your franchise and ensuring you can cover initial operating expenses.
What Are the Ongoing Fees and Financial Performance Expectations?
Owning a Cartridge World franchise comes with ongoing financial obligations, including an 8% royalty fee on gross sales and a 4% marketing fee. Financial performance can vary, with average annual revenue per unit reported at $200,000. However, it’s important to note that revenues can range from as low as $50,000 to as high as $2,171,952, depending on various factors such as location and management. Understanding these financial dynamics will help you plan for sustainable growth and profitability.
How Long Does It Typically Take to Break Even on a Cartridge World Franchise?
Franchisees can expect to reach their breakeven point within approximately 12 months of opening their Cartridge World location. This relatively quick return on investment is a positive aspect for potential franchisees, as it indicates a faster path to profitability. Once breakeven is achieved, the investment payback period is estimated at around 24 months, allowing franchisees to start seeing a return on their initial investment relatively soon.
What Is the Current State of Cartridge World Franchising?
As of 2023, Cartridge World has experienced a decline in the number of franchised units, dropping from 166 in 2021 to 107. This trend indicates a need for potential franchisees to conduct thorough market research and evaluate the brand’s current positioning. Despite this decline, the franchise still presents opportunities for growth, especially in areas with high demand for printing services. Understanding the competitive landscape and market dynamics will be crucial for success in this franchise model.
Cartridge World 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:
Cartridge World 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 | 174 | 142 | 112 |
| Net Change YoY | -32 | -30 | |
| Franchised Units | 166 | 135 | 107 |
| Net Change YoY | -31 | -28 | |
| Corporate Units | 8 | 7 | 5 |
| Net Change YoY | -1 | -2 |
Initial Investment
The Cartridge World franchise requires a low initial investment ranging from $75,150 to $226,800. This includes a franchise fee of $50,000, making it accessible for aspiring entrepreneurs looking to enter the printing and imaging industry.
Royalty and Marketing Fees
Franchisees are subject to an 8% royalty fee on gross sales and a 4% marketing fee. These fees contribute to the ongoing support and marketing efforts provided by Cartridge World, ensuring brand visibility and operational guidance.
Financial Performance
Cartridge World units reported an average annual revenue of $200,000, with the highest performing units generating up to $2,171,952. This showcases the potential profitability of the franchise, making it an attractive option for investors.
Breakeven and Payback Period
Franchisees can expect to breakeven within 12 months and achieve a return on investment within 24 months. This relatively quick payback period is appealing for individuals seeking a profitable business venture.
Franchise Growth
In recent years, Cartridge World has seen a decline in franchised units, with 166 in 2021, 135 in 2022, and 107 in 2023. This trend highlights the importance of evaluating market conditions and operational strategies for potential franchisees.
Corporate Structure
Cartridge World operates with a combination of franchised and corporate-owned units. In 2023, there were 107 franchised units and 5 corporate units, reflecting the brand's commitment to supporting franchisees while maintaining direct control over certain locations.
Frequently Asked Questions
The initial investment for a Cartridge World franchise ranges from $75,150 to $226,800, which includes a franchise fee of $50,000.