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The Great Frame Up Franchise ProfileChildren’s Franchises > Art & Craft Programs |
What Are the Initial Investment Costs for The Great Frame Up Franchise?
The initial investment for a The Great Frame Up franchise ranges from $113,682 to $209,465. This includes a franchise fee of $30,000. Prospective franchisees should also consider additional cash requirements, which can vary between $30,000 and $209,465. Understanding these costs is crucial for aspiring franchise owners to ensure they have the necessary funds to get started and sustain operations during the initial phase.
What Are the Ongoing Fees Associated with The Great Frame Up Franchise?
Franchisees of The Great Frame Up are subject to a royalty fee of 6% on gross sales, in addition to a marketing fee of 1.50%. These ongoing fees are essential for maintaining brand presence and support from the franchisor. It's important for potential franchisees to factor these costs into their financial planning, as they will impact overall profitability and cash flow.
What Is the Average Revenue Potential for The Great Frame Up Franchise?
The average annual revenue per unit for The Great Frame Up franchise is approximately $1,382,071, with a median annual revenue of $368,000. This revenue potential illustrates the viability of the business model, but it’s essential for franchisees to understand that actual revenues can vary significantly based on location, management, and market conditions. The highest recorded annual revenue per unit is $250,000, while the lowest is $123,749.
What Is the Expected Financial Performance Timeline for The Great Frame Up Franchise?
Franchisees can expect to break even within 12 months of operation, with an investment payback period of approximately 36 months. This timeline is beneficial for potential investors as it provides a clear expectation of when they might start seeing returns on their investment. Understanding these financial performance metrics allows franchisees to plan their growth strategies effectively and manage their cash flow during the early stages of their business.
The Great Frame Up 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.
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The Great Frame Up Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 63 | 60 | 56 |
| Net Change YoY | -3 | -4 | |
| Franchised Units | 63 | 60 | 56 |
| Net Change YoY | -3 | -4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Great Frame Up franchise offers a low to moderate initial investment, ranging from $113,682 to $209,465. With an initial franchise fee of $30,000, potential franchisees should also prepare for ongoing costs, including a 6% royalty fee and a 1.5% marketing fee. A cash reserve of $30,000 to $209,465 is necessary to ensure smooth operations in the early stages.
Financial Performance
Franchisees can expect average annual revenue of approximately $1,382,071 per unit, with a median revenue of $368,000. The breakeven point is typically reached within 12 months, and investors can anticipate a payback period of around 36 months. This financial outlook highlights the potential for profitability within the franchise model.
Operational Insights
The average cost of goods sold (COGS) for The Great Frame Up franchise is about $729,164, representing 52.8% of total revenue. Operating expenses are significant, totaling $1,197,888 annually, which accounts for 86.6% of revenue. Understanding these costs is crucial for managing profitability and operational efficiency.
Franchise Growth
The Great Frame Up has shown a consistent presence in the market, with 63 franchised units in 2021, decreasing slightly to 60 in 2022, and 56 in 2023. This trend indicates a stable, albeit slightly declining, franchise network, which may reflect market saturation or strategic restructuring within the brand.
Required Qualifications
Aspiring franchisees must possess a net worth between $100,000 and $200,000, ensuring they have the financial stability to invest in and operate a franchise. Additionally, having a cash reserve of $30,000 to $209,465 is essential for covering initial costs and managing early operational expenses.
Brand Positioning
The Great Frame Up specializes in custom framing and art services, catering to a diverse clientele looking for personalized solutions. With a focus on quality and customer satisfaction, the brand positions itself as a leader in the framing industry, appealing to both individual customers and businesses seeking tailored art solutions.
Frequently Asked Questions
The initial investment for a Great Frame Up franchise ranges from $113,682 to $209,465, which includes a franchise fee of $30,000.