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Description
Investment Icon

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.

Fees Icon

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.

Revenue Icon

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.

Breakeven Icon

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.

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

i Net Worth Required:

$100,000 - $1,600,207
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

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

i Franchise Fee:

$50,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

8%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

4%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

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

i Initial Investment:

$75,150 - $226,800
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$75,150 - $106,800
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$16,041
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$200,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,171,952
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$50,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

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

i Category:

Printing Services
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Brett Smith
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

3917 Mercy DriveMcHenry, IL 60050
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2002
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Cartridge World North America, LLC

Cartridge World 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

109
The number of locations owned by independent franchisees.

Franchised Units i

107
The number of locations owned and run by the franchisor.

Corporate Units i

2
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
Investment About

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.

Potential About

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.

Metrics About

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.

Fees About

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.

Breakeven About

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.

Units About

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.