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Fleet Feet Triathlete Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a Fleet Feet Franchise?
To open a Fleet Feet franchise, you will need to consider a range of initial investment costs. The total investment can vary significantly, with a low end of approximately $228,500 and a high end reaching up to $545,000. The initial franchise fee is set at $22,500, and franchisees should be prepared for ongoing costs, including a royal fee of 4% of gross sales and a marketing fee of 2%. Additionally, having cash reserves between $40,000 and $228,500 is necessary, along with a net worth requirement ranging from $200,000 to $500,000.
What Are the Financial Performance Metrics for Fleet Feet?
Fleet Feet franchises have shown promising financial performance metrics. The average annual revenue per unit stands at about $1,696,642, with a median revenue of $1,417,560. Revenue can vary widely, with the lowest reported at $264,174 and the highest reaching $5,029,029. The breakeven time for a new unit is approximately 12 months, and the investment payback period is around 22 months, making it a potentially lucrative opportunity for franchisees.
What Are the Average Operating Expenses for Fleet Feet?
Understanding the operating expenses is crucial for managing a Fleet Feet franchise effectively. Average annual expenses include rent and utilities at about $28,700, with additional marketing and advertising costs ranging from $3,000 to $10,000. Franchisees should also budget for sales and accounting services, which can also vary between $3,000 and $10,000. Total estimated operating expenses can range from $71,400 to $128,300, depending on various factors.
How Has Fleet Feet Expanded in Recent Years?
Fleet Feet has demonstrated consistent growth in its franchised units over recent years. In 2021, there were 149 franchised locations, which increased to 153 in 2022, and further expanded to 167 in 2023. The total number of units, including corporate-owned locations, has also grown, from 183 in 2021 to 252 in 2023. This growth reflects the brand's increasing popularity and potential for franchisees looking to enter the market.
Fleet Feet, Fleet Feet Triathlete 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, Fleet Feet Triathlete 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 | 192 | 252 |
| Net Change YoY | 9 | 60 | |
| Franchised Units | 149 | 153 | 167 |
| Net Change YoY | 4 | 14 | |
| Corporate Units | 34 | 39 | 85 |
| Net Change YoY | 5 | 46 |
Investment Overview
The initial investment required to open a Fleet Feet or Fleet Feet Triathlete franchise ranges from $228,500 to $545,000. This includes a franchise fee of $22,500, along with ongoing royalty fees of 4% and a marketing fee of 2%. Potential franchisees should have a cash requirement between $40,000 and $228,500, and a net worth of $200,000 to $500,000 to qualify for ownership.
Revenue Potential
Fleet Feet franchises show strong revenue potential, with average annual revenue per unit reported at $1,696,642. The median revenue stands at $1,417,560, while the lowest and highest annual revenues range from $264,174 to $5,029,029, respectively. This wide revenue spectrum highlights the opportunity for franchisees to achieve significant financial success based on location and market demand.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. Investment payback is estimated to occur within 22 months, allowing owners to recover their initial investments relatively quickly. This timeline is crucial for aspiring franchisees to consider when evaluating the financial viability of their venture.
Growth and Expansion
Fleet Feet has demonstrated consistent growth in its franchise network, increasing from 149 franchised units in 2021 to 167 in 2023. The total number of units has also grown from 183 to 252 during the same period, indicating a robust interest in the brand and its offerings. This growth trend reflects the brand's strong market presence and potential for future expansion.
Financial Performance
The average profit and loss metrics for Fleet Feet franchises reveal a gross profit margin of 62.6%, with operating expenses accounting for 76.1% of revenue. This results in an EBITDA of $1,827,500, showcasing the brand's ability to generate profits while managing operational costs effectively. Franchisees should analyze these figures to understand their potential profitability.
Operational Expenses
The average annual operating expenses for Fleet Feet franchises are estimated between $71,400 and $128,300. Key expenses include rent and utilities at approximately $28,700, along with marketing and advertising costs ranging from $3,000 to $10,000. Understanding these expenses is essential for franchisees to budget effectively and ensure sustainable operations.
Frequently Asked Questions
The initial investment for a Fleet Feet franchise ranges from $228,500 to $545,000, including a franchise fee of $22,500.