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Description
Investment Icon

What is the Initial Investment for an ENZAFRUIT Franchise?

To open an ENZAFRUIT franchise, you will need to budget between $38,000 and $42,000 for the initial investment. This includes a franchise fee of $2,000, which is a one-time payment to join the franchise system. Additionally, potential franchisees should be prepared for ongoing expenses such as a 3% royalty fee on gross sales and a 10% marketing fee to support brand promotion. Having cash readily available in the range of $38,000 to $42,000 is essential to cover these initial costs.

Fees Icon

What are the Financial Performance Metrics for ENZAFRUIT?

ENZAFRUIT franchises have shown promising financial performance, with an average annual revenue per unit reaching approximately $5,153,516. The median annual revenue is slightly lower at $4,993,971, while the lowest recorded annual revenue stands at $633,883. The breakeven point for new franchisees is typically around 24 months, with an average investment payback period of just 23 months, indicating a potentially lucrative opportunity for dedicated franchise owners.

Revenue Icon

What are the Required Financial Qualifications for Franchisees?

Prospective ENZAFRUIT franchisees must meet specific financial qualifications to ensure they can sustain the business. A net worth of between $1,000,000 and $1,500,000 is required, along with sufficient liquid capital to cover the initial investment and operational costs. The first-year cash flow needs are estimated at $31,922, decreasing to $6,234 in the second year. This financial threshold is crucial for maintaining stability and supporting the growth of the franchise.

Breakeven Icon

What is the Growth Trend of ENZAFRUIT Franchise Units?

The ENZAFRUIT franchise has demonstrated consistent growth over the years. In 2014, there were 64 franchised units, which increased to 67 in 2015 and further to 68 in 2016. This steady growth indicates a healthy interest in the franchise model and suggests that franchisees are finding success in their operations. With no corporate-owned units reported during this period, the expansion relies entirely on franchisee investments, highlighting the brand's commitment to a franchise-centric growth strategy.

ENZAFRUIT 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:

$1,000,000 - $1,500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

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

i Franchise Fee:

$2,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

3%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

10%
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:

$38,000 - $42,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$38,000 - $42,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$5,153,516
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$4,993,971
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$5,153,516
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$633,883
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:

Gareth Edgecombe
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

Level 2, 200 – 204 Great South Road, Greenlane, Auckland, New Zealand
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1998
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

ENZAFRUIT Products Inc.

ENZAFRUIT 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

72
The number of locations owned by independent franchisees.

Franchised Units i

72
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2014 2015 2016
Total Units 64 67 68
Net Change YoY 3 1
Franchised Units 64 67 68
Net Change YoY 3 1
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The ENZAFRUIT franchise requires a low initial investment ranging from $38,000 to $42,000. This includes a franchise fee of $2,000, making it accessible for aspiring entrepreneurs looking to enter the business world without a substantial financial burden.

Potential About

Ongoing Fees

Franchisees are subject to a royalty fee of 3% on gross sales and a marketing fee of 10%. These fees are essential for supporting brand development and local advertising efforts, ensuring that franchisees benefit from a well-recognized brand presence in their markets.

Metrics About

Financial Performance

ENZAFRUIT units generate impressive average annual revenues of approximately $5,153,516, with a median revenue of $4,993,971. This strong financial performance highlights the potential profitability for franchisees, though actual results may vary based on location and management.

Fees About

Breakeven and Payback Period

Franchisees can expect to reach breakeven within 24 months, with an investment payback period of approximately 23 months. This relatively quick return on investment makes ENZAFRUIT an attractive option for those looking to establish a profitable business in a timely manner.

Breakeven About

Franchise Growth

Since its inception, ENZAFRUIT has shown steady growth in the number of franchised units. From 64 units in 2014 to 68 units in 2016, the brand's expansion reflects its increasing popularity and the confidence franchisees have in its business model.

Units About

Operational Costs

Franchisees should prepare for annual operating expenses totaling around $38,156, which includes initial cash flow needs of $31,922 in the first year and $6,234 in the second year. Understanding these costs is crucial for effective financial planning and ensuring long-term success in the franchise business.

Frequently Asked Questions

The initial investment for an EnzaFruit franchise ranges from $38,000 to $42,000, which includes a franchise fee of $2,000.