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Furniture Medic Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Furniture Medic Franchise?
The initial investment for a Furniture Medic franchise ranges from $86,945 to $145,250. This includes a franchise fee of $50,000. Potential franchisees should also be prepared for ongoing costs, such as a 7% royalty fee and a 2% marketing fee. Having adequate cash reserves is crucial, with a net worth requirement of $100,000 to $250,000 to ensure financial stability during the startup phase.
What Are the Financial Performance Metrics for Furniture Medic?
On average, each Furniture Medic unit generates an annual revenue of $289,908, with a median revenue of $80,502. However, revenues can vary significantly, ranging from as low as $358 to as high as $6,127,559. Typically, franchisees can expect to break even within 12 months and achieve investment payback within 24 months, making it a potentially lucrative opportunity for dedicated operators.
What Are the Typical Expenses for Running a Furniture Medic Franchise?
Running a Furniture Medic franchise involves various expenses, including insurance (approximately $2,500 to $4,500), internet connection costs ($540 to $1,800), and software expenses ($1,200 to $1,500). Additional costs may include a service vehicle ($2,000 to $5,000) and initial marketing expenses of around $3,000. Overall, the total estimated running expenses align with the initial investment range, ensuring franchisees are well-prepared for operational costs.
How Many Franchise Units Are Currently Operating?
As of 2023, there are 124 Furniture Medic franchise units in operation, reflecting a decline from 165 units in 2021 and 147 units in 2022. Notably, there are no corporate-owned units, indicating a focus on franchising as the primary growth model. This trend may suggest a need for potential franchisees to assess market conditions and support structures when considering investment in the Furniture Medic brand.
Furniture Medic 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:
Furniture Medic 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 | 165 | 147 | 124 |
| Net Change YoY | -18 | -23 | |
| Franchised Units | 165 | 147 | 124 |
| Net Change YoY | -18 | -23 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Furniture Medic franchise offers a low to moderate initial investment range, with costs between $86,945 and $145,250. The franchise fee is set at $50,000, and new franchisees should anticipate a royalty fee of 7% on gross sales, along with a marketing fee of 2%. This structure allows aspiring entrepreneurs to assess their financial commitment upfront while planning for ongoing operational expenses.
Financial Performance
On average, Furniture Medic units generate annual revenues of approximately $289,908, with a median revenue of $80,502. The potential for revenue is vast, with the highest reported annual revenue reaching over $6 million. This financial performance indicates a strong market presence and the opportunity for franchisees to achieve significant profitability.
Franchise Growth
The Furniture Medic franchise has seen a decline in the number of franchised units over the past few years, from 165 units in 2021 to 124 in 2023. This trend may suggest a need for franchise development strategies to bolster growth and attract new franchisees. Understanding market dynamics will be crucial for potential investors looking to enter this franchise.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 24 months, offering a relatively quick return on investment compared to many other franchise opportunities. This timeline can be appealing for entrepreneurs seeking to minimize financial risk.
Operational Expenses
Franchisees should be aware of various operational expenses, including insurance (ranging from $2,500 to $4,500), internet costs, and software expenses. Initial marketing costs are set at $3,000, along with additional funds for at least three months of operations estimated between $20,000 and $40,000. Understanding these expenses will help in budgeting and financial planning.
Corporate Structure
Furniture Medic operates as a franchise model without any corporate-owned units, indicating a fully franchised business structure. This model allows franchisees to benefit from a brand with established operational systems while maintaining independence in their business operations. Understanding the franchise's corporate structure is vital for assessing support and resources available to franchisees.
Frequently Asked Questions
The initial investment to open a Furniture Medic franchise ranges from $86,945 to $145,250, which includes the franchise fee of $50,000.