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Holiday Stationstores Franchise ProfileRetail Franchises > Convenience Stores |
What Are the Initial Investment Requirements for a Holiday Stationstores Franchise?
To open a Holiday Stationstores franchise, you should prepare for an initial investment ranging from $3,341,950 to $7,734,100. This includes a franchise fee of $25,000. Additionally, you’ll need to maintain a net worth between $1,000,000 and $4,000,000, along with sufficient cash reserves to cover the startup costs. Understanding these financial commitments is crucial before diving into the franchise ownership journey.
What Are the Ongoing Fees Associated with a Holiday Stationstores Franchise?
Once you become a Holiday Stationstores franchisee, you will be required to pay a royalty fee of 3.50% on your gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand visibility and support, contributing to your franchise's overall success. It's important to factor these costs into your financial planning to ensure sustainable profitability.
What Is the Average Revenue Potential for a Holiday Stationstores Franchise?
Holiday Stationstores franchises have the potential to generate significant revenue, with an average annual revenue per unit reported at $609,241. The median annual revenue is even higher, at $1,080,000, showcasing the brand's strong market presence. Notably, some units can achieve revenues as high as $3,000,000, making this an attractive opportunity for prospective franchisees looking for profitable ventures.
What Is the Breakeven Timeline for a Holiday Stationstores Franchise?
Franchisees can expect to reach their breakeven point within approximately 12 months of operation. With an investment payback period estimated at 23 months, this timeline indicates a relatively quick return on investment compared to many other franchise opportunities. This efficiency can be appealing for those looking to establish a successful business with a solid financial foundation.
Holiday Stationstores 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:
Holiday Stationstores 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 | 522 | 531 | 534 |
| Net Change YoY | 9 | 3 | |
| Franchised Units | 109 | 114 | 117 |
| Net Change YoY | 5 | 3 | |
| Corporate Units | 413 | 417 | 420 |
| Net Change YoY | 4 | 3 |
Franchise Overview
Holiday Stationstores is a well-established convenience store franchise known for its commitment to providing quality products and exceptional service. With a diverse range of offerings, including fuel, snacks, beverages, and convenience items, Holiday Stationstores has become a go-to destination for customers on the road. The franchise has a growing presence, with both corporate and franchised units across multiple states, catering to the needs of travelers and local communities alike.
Investment Requirements
To become a Holiday Stationstores franchisee, prospective owners should prepare for a significant investment. The initial investment ranges from $3,341,950 to $7,734,100, which includes a franchise fee of $25,000. Additionally, franchisees are required to maintain a net worth between $1,000,000 and $4,000,000. This financial commitment is crucial for securing the necessary resources to establish and operate a successful location.
Royalty and Marketing Fees
Franchisees of Holiday Stationstores are subject to a royalty fee of 3.50% on gross sales, which contributes to the ongoing support and resources provided by the franchisor. In addition, there is a marketing fee of 1% to help fund national and local advertising efforts. These fees are essential for maintaining the brand's visibility and driving customer traffic to individual locations.
Financial Performance
The average annual revenue per unit for Holiday Stationstores is approximately $609,241, with a median annual revenue of $1,080,000. Units have reported revenues ranging from $1,000,000 to as high as $3,000,000. This financial performance highlights the brand's potential for profitability and the viability of the franchise model in the competitive convenience store market.
Break-even and Payback Period
Investors can expect a break-even period of about 12 months, making Holiday Stationstores an attractive option for those looking to recoup their initial investment quickly. The investment payback period is estimated at 23 months, which indicates a relatively swift return on investment compared to other franchise opportunities. This financial outlook is appealing for aspiring franchisees seeking a promising business venture.
Growth and Expansion
Holiday Stationstores has shown consistent growth in its franchised units, increasing from 109 units in 2021 to 117 units in 2023. The total number of units has also expanded, with 534 locations operating as of 2023. This upward trend reflects the brand's successful market strategy and the ongoing demand for convenience store services, positioning Holiday Stationstores as a strong contender for potential franchisees looking to enter a growing industry.
Frequently Asked Questions
The initial investment for a Holiday Stationstores franchise ranges from $3,341,950 to $7,734,100. This includes the franchise fee, equipment, inventory, and other startup costs.