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First Choice Business Brokers Franchise ProfileConsultant & Business Brokers > Business Coaching |
What is the Initial Investment for a First Choice Business Brokers Franchise?
To open a First Choice Business Brokers franchise, you need to plan for an initial investment ranging from $69,500 to $101,350. This includes a franchise fee of $40,000. Additionally, potential franchisees should have cash available between $15,150 and $45,100, along with a net worth requirement of $500,000 to $1,000,000. Understanding these costs is crucial as they set the foundation for your business journey.
What are the Ongoing Fees Associated with the Franchise?
Once you become a franchisee, you will be responsible for ongoing fees, including a royalty fee of 10% of your unit's revenue and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing initiatives that drive customer traffic to your business. Being aware of these ongoing costs will help you better manage your financial expectations as a franchise owner.
What are the Revenue Potential and Breakeven Timeline?
The average annual revenue per unit for a First Choice Business Brokers franchise is approximately $1,621,246, with a median revenue of $1,621,246 as well. Franchisees can expect to reach breakeven within about 12 months, providing a relatively quick return on investment. With careful management and effective marketing strategies, franchisees have the potential to achieve significant profitability in the first couple of years.
How Many Units are Currently Franchised?
As of 2023, First Choice Business Brokers has expanded to 84 franchised units, up from 39 in 2021. This growth reflects the brand's increasing popularity and the potential for new franchisees to join a thriving network. Understanding the scale of the franchise can help you gauge the support and community available to you as a new franchise owner.
First Choice Business Brokers 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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First Choice Business Brokers 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 | 46 | 61 | 89 |
| Net Change YoY | 15 | 28 | |
| Franchised Units | 39 | 56 | 84 |
| Net Change YoY | 17 | 28 | |
| Corporate Units | 7 | 5 | 5 |
| Net Change YoY | -2 | 0 |
Investment Overview
The First Choice Business Brokers franchise offers a low initial investment range of $69,500 to $101,350, with a franchise fee of $40,000. Franchisees can expect to allocate between $15,150 and $45,100 in cash to get started. The franchise requires a net worth of $500,000 to $1,000,000, making it accessible for those with substantial financial backing.
Revenue Potential
With an average annual revenue per unit of $1,621,246, First Choice Business Brokers demonstrates strong financial performance. The revenue figures range from a low of $745,341 to a high of $1,621,246, indicating a robust market potential for franchisees. This revenue potential, combined with a breakeven period of just 12 months, makes it an attractive investment opportunity.
Operational Structure
First Choice Business Brokers has seen significant growth in its franchised units, increasing from 39 in 2021 to 84 in 2023. This growth reflects the brand's expanding footprint and market acceptance. The franchise operates alongside a stable number of corporate units, which have remained consistent over the years, providing a balance between franchise and corporate operations.
Financial Performance
The average financial performance shows that First Choice Business Brokers has a gross profit margin of 91.91%. However, operating expenses exceed revenue, resulting in a negative EBITDA of $(281,266). This presents an opportunity for franchisees to focus on cost management and operational efficiency to improve profitability.
Marketing and Royalties
Franchisees are required to pay a royalty fee of 10% on gross sales, alongside a marketing fee of 2%. This structure ensures that franchisees contribute to the overall brand development while benefiting from collective marketing efforts that enhance visibility and attract clients.
Company Mission
First Choice Business Brokers is dedicated to empowering entrepreneurs by providing comprehensive support and resources for business ownership. Their mission centers around facilitating successful business transactions and fostering a community of franchisees who thrive through collaboration, knowledge sharing, and innovative practices in the brokerage industry.
Frequently Asked Questions
The initial investment for a First Choice Business Brokers franchise ranges from $69,500 to $101,350, which includes a franchise fee of $40,000.