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Gotcha Covered Franchise ProfileConsultant & Business Brokers > Franchise Consulting |
What Are the Initial Investment Requirements for a Gotcha Covered Franchise?
To open a Gotcha Covered franchise, you will need to prepare for an initial investment ranging from $103,160 to $136,400. This includes a franchise fee of $69,900. Additionally, it's important to have a cash requirement within the same range, as well as a net worth of $200,000 to $500,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the investment.
What Are the Ongoing Fees Associated with a Gotcha Covered Franchise?
Franchisees of Gotcha Covered will incur ongoing fees, including a royalty fee of 3.5% of gross sales and a marketing fee of 5%. These fees are essential for maintaining brand standards and supporting marketing initiatives. It's vital for potential franchise owners to factor these costs into their financial planning to gauge the overall profitability of their franchise unit.
What Is the Average Revenue Potential for a Gotcha Covered Franchise?
The average annual revenue for a Gotcha Covered franchise unit is approximately $592,530.92, with a median annual revenue of $400,058. This indicates a strong revenue potential, but it's essential to note that revenues can vary significantly, with the lowest reported at $101,237 and the highest at $3,690,457. Understanding these figures can help franchisees set realistic financial expectations and goals.
What Is the Breakeven Point for a Gotcha Covered Franchise?
Gotcha Covered franchisees can expect to reach their breakeven point within 12 months of operation. With an investment payback period of about 22 months, this timeline provides a relatively quick return on investment compared to many other franchise models. This information is crucial for potential franchisees as they evaluate the financial viability of entering the franchise system.
Gotcha Covered 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:
Gotcha Covered 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 | 128 | 146 | 154 |
| Net Change YoY | - | 18 | 8 |
| Franchised Units | 128 | 146 | 154 |
| Net Change YoY | - | 18 | 8 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | - | - | - |
Franchise Overview
Gotcha Covered is a dynamic franchise specializing in custom window treatments, offering a range of products that include blinds, shades, and drapes. With a focus on personalized service, Gotcha Covered empowers franchisees to build lasting relationships with customers by providing tailored solutions for their home or office spaces. The brand has experienced steady growth, boasting an increasing number of franchised units over the years.
Investment Requirements
To become a Gotcha Covered franchisee, the initial investment ranges from $103,160 to $136,400, which includes a franchise fee of $69,900. Franchisees should be prepared with a cash requirement within the same range, while a net worth of $200,000 to $500,000 is necessary for eligibility. This financial foundation ensures that franchisees can effectively manage startup costs and operational expenses.
Financial Performance
Gotcha Covered franchises report an average annual revenue of $592,530.92, with a median annual revenue of $400,058. The financial performance demonstrates a strong potential for profitability, with the highest annual revenue reaching $3,690,457. The breakeven time for new units is approximately 12 months, and the investment payback period is around 22 months, indicating a favorable return on investment for dedicated franchisees.
Ongoing Fees
Franchisees are required to pay a royalty fee of 3.50% of gross sales, along with a marketing fee of 5%. These fees contribute to the overall support and resources provided by the franchise, including brand marketing and operational assistance. Understanding these ongoing costs is crucial for franchisees to effectively plan their financial strategies and maintain profitability.
Operational Support
Gotcha Covered offers comprehensive support to franchisees, including training programs, marketing resources, and operational guidelines. The franchise is committed to helping new owners navigate the initial setup and ongoing management of their business. This support structure is designed to enhance franchisee success and ensure consistency in service delivery across all locations.
Growth Potential
With a consistent increase in franchised units—growing from 128 in 2021 to 154 in 2023—Gotcha Covered demonstrates significant growth potential in the window treatment industry. The franchise model is designed to accommodate both single-unit and multi-unit operators, providing opportunities for franchisees to expand their business footprint. This scalability makes Gotcha Covered an appealing option for aspiring entrepreneurs and seasoned investors alike.
Frequently Asked Questions
The initial investment for a Gotcha Covered franchise ranges from $103,160 to $136,400, which includes the franchise fee of $69,900.