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Goodcents Deli Fresh Subs Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Goodcents Deli Fresh Subs Franchise?
To open a Goodcents Deli Fresh Subs franchise, you should prepare for a range of initial investments between $60,000 and $514,850. This includes a franchise fee of $30,000. It's essential to have cash on hand ranging from $327,800 to $514,850, along with a net worth requirement of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are financially equipped to start their journey.
What Are the Ongoing Fees and Financial Performance Metrics?
Franchisees of Goodcents Deli Fresh Subs are subject to ongoing royalty fees of 6% and a marketing fee of 3%. The average annual revenue per unit is approximately $1,031,954, with a median of $626,132. The lowest annual revenue recorded is $259,119, while the highest reaches $1,412,331. These figures highlight the potential profitability of the franchise, but it’s important to consider the ongoing fees when evaluating overall financial performance.
What is the Breakeven and Investment Payback Period?
One of the appealing aspects of a Goodcents Deli Fresh Subs franchise is the swift breakeven time, which is typically around 12 months. This means that franchisees can expect to recover their initial investment within the first year of operation. Additionally, the investment payback period aligns with the breakeven timeline, providing a clear indication of the franchise's financial viability and the potential for early returns on investment.
How Many Units Does Goodcents Deli Fresh Subs Operate?
As of 2023, Goodcents Deli Fresh Subs operates a total of 64 franchised units, with one corporate unit. The franchise has seen slight fluctuations in unit count over the past few years, with 63 units in 2021, increasing to 65 in 2022, and then stabilizing at 64 in 2023. This growth trajectory reflects the brand's stability and potential for expansion, making it an interesting opportunity for prospective franchisees.
Goodcents Deli Fresh Subs 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:
Goodcents Deli Fresh Subs 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 | 63 | 65 | 64 |
| Net Change YoY | +2 | -1 | |
| Franchised Units | 63 | 65 | 64 |
| Net Change YoY | +2 | -1 | |
| Corporate Units | 0 | 1 | 1 |
| Net Change YoY | +1 | 0 |
Investment Overview
Goodcents Deli Fresh Subs offers a compelling investment opportunity for aspiring franchisees. The initial investment ranges from $60,000 to $514,850, with a franchise fee of $30,000. Franchisees should be prepared for a cash requirement between $327,800 and $514,850, and a net worth of $500,000 to $1,000,000 to qualify for ownership.
Revenue Potential
On average, Goodcents Deli Fresh Subs units generate an impressive annual revenue of approximately $1,031,954, with a median revenue of $626,132. The revenue figures showcase the brand's strong market presence and the potential for franchisees to achieve significant financial returns. The highest annual revenue recorded is $1,412,331, indicating the peak performance possible within the system.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing initiatives that drive customer traffic and brand recognition. By investing in these areas, franchisees can enhance their profitability and market reach.
Operational Efficiency
Goodcents Deli Fresh Subs has established a breakeven time of just 12 months, allowing franchisees to recoup their initial investment quickly. The average EBITDA margin stands at 10.62%, reflecting the brand's operational efficiency and profitability potential. Franchisees can expect a solid return on investment within the first year of operation.
Franchise Growth
The franchise system has shown steady growth, with 63 franchised units in 2021, increasing to 65 in 2022, before stabilizing at 64 in 2023. This consistency indicates a stable brand presence and the ability to maintain franchisee satisfaction, which is crucial for long-term success in the competitive food service sector.
Company Support
Goodcents Deli Fresh Subs provides comprehensive support to its franchisees, including training, operational guidance, and marketing resources. This support structure is designed to help franchisees navigate the challenges of running a business while maximizing their potential for success. With a focus on collaboration and growth, franchisees can rely on the corporate team to assist them in achieving their business goals.
Frequently Asked Questions
The initial investment for a Goodcents Deli Fresh Subs franchise ranges from $60,000 to $514,850, which includes the franchise fee and other startup costs.