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Everbowl Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for an Everbowl Franchise?
To open an Everbowl franchise, the initial investment ranges from $213,540 to $475,750. This includes a franchise fee of $37,500. Potential franchisees should also be prepared for ongoing costs such as a 6% royalty fee and a 2% marketing fee. It's essential to ensure you have adequate cash reserves, as the required cash to start can vary widely within this range.
What Are the Financial Performance Metrics for Everbowl?
Everbowl units have shown promising financial metrics. The average annual revenue per unit is approximately $2,129,662, with a median figure of $1,590,000. The lowest reported annual revenue is $250,000, while the highest reaches $2,129,662. Notably, the breakeven time is estimated at just 12 months, indicating a relatively quick return on investment for franchisees.
What Are the Operating Expenses for Everbowl Franchisees?
Operating expenses for an Everbowl franchise can be significant. The total operating expenses average around $1,941,897 annually, which includes payroll and related taxes at $782,803, advertising and promotion at $506,440, and general and administrative costs at $652,654. Understanding these expenses is crucial for franchisees to manage profitability effectively.
How Many Everbowl Locations Are There?
Everbowl has experienced rapid growth in its franchised units. As of 2023, there are a total of 60 units, with 54 being franchised. This marks a significant increase from just 6 franchised units in 2021. The company has also begun to establish corporate units, with 6 corporate locations in operation as of 2023, indicating a balanced approach to growth and support for franchisees.
Everbowl 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.
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Everbowl Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 30 | 45 | 60 |
| Net Change YoY | 15 | 15 | |
| Franchised Units | 6 | 45 | 54 |
| Net Change YoY | 39 | 9 | |
| Corporate Units | 24 | 0 | 6 |
| Net Change YoY | -24 | 6 |
Investment Overview
Everbowl offers a range of initial investment options, with a low end of $213,540 and a high of $475,750. The initial franchise fee is set at $37,500, with ongoing royalty fees of 6% and a marketing fee of 2%. Prospective franchisees should be prepared for a cash requirement within the same range, and a net worth requirement between $200,000 and $400,000 to ensure financial stability for successful operations.
Revenue Potential
Everbowl units show promising financial performance, with average annual revenue reaching $2,129,662. The median annual revenue per unit is also substantial at $1,590,000, indicating a strong demand for their offerings. The lowest annual revenue recorded is $250,000, while the highest peaks at $2,129,662, showcasing the potential for significant earnings within the franchise model.
Breakeven and Payback Period
Franchisees can expect a breakeven time of approximately 12 months, allowing for a relatively quick return on investment. With an investment payback period of the same duration, Everbowl presents an attractive financial opportunity for those looking to enter the franchise market and recoup their initial costs efficiently.
Franchise Growth
Everbowl has demonstrated rapid growth in its franchised units, expanding from 6 units in 2021 to 54 units in 2023. The corporate structure has also evolved, with 24 corporate units in 2021, zero in 2022, and 6 in 2023. This growth trajectory reflects a strong demand for the brand and its potential for future expansion.
Operational Insights
The average annual operating expenses for Everbowl units total approximately $1,941,897, with payroll and related taxes being the largest component at $782,803. Advertising and promotion expenses are also significant, amounting to $506,440, highlighting the importance of marketing in driving customer engagement and sales for franchisees.
Financial Performance Metrics
Everbowl's financial performance metrics indicate a gross profit margin of 88.45%, with cost of goods sold (COGS) at 11.55%. However, operating expenses exceed revenue, leading to a negative EBITDA of ($58,364) or (2.74%). This emphasizes the need for franchisees to manage costs effectively while maximizing revenue to achieve profitability.
Frequently Asked Questions
The initial investment for an Everbowl franchise ranges from $213,540 to $475,750, which includes the franchise fee, equipment, and other startup costs.