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Learning Express Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a Learning Express Franchise?
To open a Learning Express franchise, you should be prepared for an initial investment ranging from $195,275 to $378,251. This includes a franchise fee of $40,000. Additionally, you'll need to maintain a cash reserve between $195,275 and $378,251 and ensure your net worth falls between $250,000 and $500,000. Understanding these financial commitments is crucial for your preparation and planning.
What Are the Financial Performance Metrics for Learning Express Franchisees?
Learning Express franchisees can expect average annual revenues of approximately $949,309, with a median revenue of $910,423. The lowest annual revenue reported is $193,617, while the highest can reach $3,519,781. With an EBITDA margin of about 9%, franchisees can anticipate a breakeven time of around 24 months and a payback period of 15 months on their investment. These metrics provide valuable insights into potential profitability and operational performance.
What Ongoing Fees Should Learning Express Franchisees Expect?
Franchisees of Learning Express are required to pay a royalty fee of 5% on their gross sales, along with a marketing fee of 3%. These ongoing fees are essential for maintaining brand standards and supporting collective marketing efforts. Understanding these costs will help you budget effectively and assess the long-term financial implications of your investment.
How Many Learning Express Franchise Units Are There?
As of 2023, Learning Express operates a total of 84 franchise units, with 83 being franchised and 1 corporate unit. The growth has been stable, with only slight variations in the number of units over the past few years. In 2021, there were 84 total units, and in 2022, this number slightly decreased to 83. This consistency in unit count reflects the brand's stability and potential for future growth in the franchise sector.
Learning Express 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:
Learning Express 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 | 84 | 83 | 84 |
| Net Change YoY | -1 | 1 | |
| Franchised Units | 82 | 82 | 83 |
| Net Change YoY | 0 | 1 | |
| Corporate Units | 2 | 1 | 1 |
| Net Change YoY | -1 | 0 |
Initial Investment
The initial investment for a Learning Express franchise ranges from $195,275 to $378,251. This includes a franchise fee of $40,000, which grants franchisees access to the brand’s proven business model and support systems. Aspiring franchisees should also be prepared for additional costs associated with setting up their location and initial inventory.
Financial Performance
Learning Express franchises have shown strong financial performance, with an average annual revenue per unit of $949,309. The median annual revenue is slightly lower at $910,423, indicating that most units perform well within this range. The highest annual revenue reported is an impressive $3,519,781, showcasing the potential for significant profitability.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 3%. These ongoing fees contribute to the overall support and marketing efforts of the Learning Express brand, helping franchisees attract customers and drive sales.
Required Financials
To qualify for a Learning Express franchise, candidates must demonstrate a net worth between $250,000 and $500,000. Additionally, a cash requirement of $195,275 to $378,251 is necessary to cover the initial investment and ensure sufficient working capital for the business.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 24 months of operation. The investment payback period is notably short at just 15 months, making Learning Express an attractive option for entrepreneurs looking for a relatively quick return on their investment.
Franchise Growth
As of 2023, Learning Express operates a total of 84 units, with 83 being franchised and 1 corporate-owned. The franchise has maintained stable growth, adding one new franchised unit from 2022 to 2023, reflecting a steady interest in the brand and its offerings.
Frequently Asked Questions
The initial investment for a Learning Express franchise ranges from $195,275 to $378,251, which includes the franchise fee and other startup costs.