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Fleet Feet Sports Franchise ProfileSports Franchises > Sports Equipment Retail |
What is the Initial Investment for a Fleet Feet Sports Franchise?
To open a Fleet Feet Sports franchise, the initial investment ranges from $228,500 to $545,000. This includes a franchise fee of $45,000. Potential franchisees should also be prepared for ongoing costs, such as a 4% royalty fee and a 2% marketing fee. Additionally, you will need to have cash available between $40,000 and $228,500, alongside a net worth requirement of $500,000 to $1,000,000.
What Are the Average Revenues for Fleet Feet Sports Franchisees?
Fleet Feet Sports franchisees can expect to generate significant revenues, with an average annual revenue of approximately $1,696,642 per unit. The median annual revenue stands at $1,459,863, while the lowest reported revenue is $264,174, and the highest can reach up to $5,512,783. This revenue potential can make Fleet Feet Sports an attractive option for aspiring franchisees looking to invest in the retail sector.
What Are the Financial Metrics for Fleet Feet Sports?
The financial performance of Fleet Feet Sports franchises reflects a healthy business model. The average gross profit margin is 56.6%, with an EBITDA of $200,529, representing 11.8% of revenue. Operating expenses average around $1,459,863 annually, which is about 86% of revenue. This data indicates that while there are significant operating costs, the potential for profitability is strong, especially with effective management of goods sold and operational efficiency.
How Quickly Can Franchisees Expect to Break Even?
Fleet Feet Sports franchisees typically experience a breakeven period of around 12 months, which is relatively quick in the franchise industry. Investment payback is projected at 24 months, allowing franchisees to recover their initial investment within a reasonable timeframe. This rapid return on investment can be appealing for those considering entering the franchise space, especially in a growing market like athletic footwear and apparel.
Fleet Feet Sports 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:
Fleet Feet Sports 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 | 183 | 239 | 252 |
| Net Change YoY | 56 | 13 | |
| Franchised Units | 149 | 153 | 167 |
| Net Change YoY | 4 | 14 | |
| Corporate Units | 34 | 86 | 85 |
| Net Change YoY | 52 | -1 |
Initial Investment
The Fleet Feet Sports franchise requires an initial investment ranging from $228,500 to $545,000. This includes a franchise fee of $45,000, which grants you the rights to operate under the Fleet Feet brand. Additionally, potential franchisees should prepare for ongoing costs including a 4% royalty fee on gross sales and a 2% marketing fee to support brand-wide advertising initiatives.
Financial Performance
Fleet Feet Sports franchises report impressive financial metrics, with an average annual revenue of $1,696,642 per unit. The median annual revenue stands at $1,459,863, showcasing a solid earning potential. However, revenue can vary significantly, with the lowest annual revenue recorded at $264,174 and the highest reaching $5,512,783. This variability highlights the importance of location and effective management in achieving financial success.
Breakeven and Payback Period
Franchisees can expect to break even within approximately 12 months of opening their Fleet Feet Sports location. The investment payback period is estimated at 24 months, making it a relatively quick return on investment compared to other franchise opportunities. This timeline is crucial for aspiring entrepreneurs looking to gauge the financial viability of their investment.
Franchise Growth
Fleet Feet Sports has shown consistent growth in its franchised units, increasing from 149 locations in 2021 to 167 in 2023. This upward trend reflects the brand's expanding market presence and the growing demand for specialty running and athletic gear. The total number of units has also risen, indicating a strong franchise model that attracts new investors.
Corporate Structure
Fleet Feet Sports operates both franchised and corporate units, with a total of 252 units as of 2023. The company has a mix of 167 franchised locations and 85 corporate-owned stores, allowing for a balanced approach to market penetration and brand management. This structure supports franchisees by providing a robust operational framework and shared resources.
Operational Expenses
The average annual operational expenses for a Fleet Feet Sports franchise total approximately $59,700. Key expenses include rent, marketing, and administrative salaries. Understanding these costs is essential for franchisees to manage their budgets effectively and ensure profitability. By keeping a close eye on these expenses, franchise owners can optimize their financial performance and enhance their bottom line.
Frequently Asked Questions
The initial investment for a Fleet Feet Sports franchise ranges from $228,500 to $545,000, which includes the franchise fee, equipment, and other startup costs.