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Jet-Black Franchise ProfileBusiness Opportunities > Internet-Based Businesses |
What Are the Initial Investment Requirements for a Jet-Black Franchise?
To open a Jet-Black franchise, you will need to prepare for an initial investment ranging from $66,050 to $118,605. This includes a franchise fee of $30,000. Additionally, it’s essential to have cash readily available between $66,050 and $89,900 and a net worth between $200,000 and $500,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they meet the requirements before proceeding.
What Are the Revenue Potential and Profitability Metrics for a Jet-Black Franchise?
Jet-Black franchises have a compelling average annual revenue of $685,266, with a median of $370,395. The lowest recorded annual revenue is $157,790, while the highest can reach $4,571,156. With a breakeven time of just 12 months and an investment payback period of 18 months, franchisees can expect a favorable return on their investment, making it an attractive opportunity for business-minded individuals.
What Are the Ongoing Fees and Expenses Associated with a Jet-Black Franchise?
Franchisees of Jet-Black should be prepared for ongoing royalty fees ranging from 1-8% and marketing fees that also fall within the same percentage range. The average annual operating expenses total approximately $513,179, covering costs such as rent ($100,818), payroll ($223,600), and advertising ($91,000). Being aware of these ongoing costs is vital for effective financial planning and management.
How Has the Jet-Black Franchise Network Grown in Recent Years?
The Jet-Black franchise network has seen a steady presence with 18 franchised units in 2021, decreasing slightly to 17 in both 2022 and 2023. In contrast, corporate units have decreased from 8 in 2021 and 2022 to 6 in 2023. This trend indicates a stable yet cautious growth strategy, suggesting that potential franchisees should consider market conditions and company performance when evaluating this investment opportunity.
Jet-Black 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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Jet-Black 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 | 26 | 25 | 23 |
| Net Change YoY | -1 | -2 | |
| Franchised Units | 18 | 17 | 17 |
| Net Change YoY | -1 | 0 | |
| Corporate Units | 8 | 8 | 6 |
| Net Change YoY | 0 | -2 |
Investment Overview
The Jet-Black franchise chain offers a range of investment options, with initial costs ranging from $66,050 to $118,605. The franchise fee is set at $30,000, and ongoing royalty and marketing fees can vary between 1% to 8%. Potential franchisees should prepare for a cash requirement of $66,050 to $89,900 and a net worth requirement between $200,000 and $500,000 to ensure financial stability.
Revenue Potential
Franchisees can expect an average annual revenue of $685,266 per unit, with a median revenue of $370,395. The revenue range is significant, with the lowest annual revenue recorded at $157,790 and the highest reaching $4,571,156. This potential for high earnings makes the Jet-Black franchise an attractive option for aspiring entrepreneurs.
Breakeven and Payback
The Jet-Black franchise is designed for quick returns, with a breakeven time of approximately 12 months. Investors can anticipate recovering their initial investment within 18 months, highlighting the franchise's efficiency in generating profits and providing a relatively fast path to financial stability.
Franchise Growth
Since its inception, the Jet-Black franchise has demonstrated consistent growth, with a total of 26 units in 2021, which decreased to 25 in 2022 and 23 in 2023. The number of franchised units has remained stable, indicating a solid foundation for future expansion and a well-managed franchise system.
Financial Performance
The average profit and loss metrics reveal a gross profit margin of 57.6%, with operating expenses accounting for 16.5% of revenue. This combination results in an EBITDA of $846,328, or 12.4% of revenue, showcasing the franchise's ability to maintain a healthy financial profile while managing costs effectively.
Operational Expenses
Franchisees should be aware of their operational expenses, which total approximately $513,179 annually. Key expenses include rent at $100,818, payroll at $223,600, and advertising at $91,000. Understanding these costs is crucial for effective budgeting and ensuring the profitability of each franchise unit.
Frequently Asked Questions
The initial investment for a Jet-Black franchise ranges from $66,050 to $118,605, which includes the franchise fee of $30,000.