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Maui Wowi Franchise ProfileCoffee Franchises > Specialty Coffee Retailers |
What Are the Initial Investment Requirements for a Maui Wowi Franchise?
Starting a Maui Wowi franchise requires an initial investment that ranges from $28,900 to $565,000. This includes a franchise fee of $30,000. Prospective franchisees should also be prepared for ongoing costs, such as a 6% royalty fee and a 15% marketing fee. To qualify, you’ll need a minimum cash requirement of $28,900 to $207,550 and a net worth of $200,000 to $500,000.
What Is the Average Revenue and Profitability of a Maui Wowi Franchise?
Maui Wowi franchises have shown promising financial performance, with an average annual revenue of approximately $263,686 per unit. The cost of goods sold accounts for about 9.29% of revenue, leading to a gross profit margin of 90.71%. After accounting for operating expenses, the EBITDA stands at 16.92%, indicating a solid potential for profitability for franchisees.
What Is the Breakeven Point and Investment Payback Period for Maui Wowi Franchisees?
Franchisees can expect to reach their breakeven point within 12 months of operation. The investment payback period is estimated at 24 months, making it a relatively quick return on investment compared to many other franchise opportunities. This timeline can be appealing for entrepreneurs looking to see a return on their initial investment sooner rather than later.
How Many Units Are Currently Operating Under the Maui Wowi Franchise?
As of 2023, there are 89 franchised units of Maui Wowi, a decrease from 111 units in 2021. Notably, there are no corporate-owned units, indicating that the brand operates entirely through franchising. This trend may reflect the brand's focus on empowering franchisees to manage their own locations while maintaining a consistent brand presence across various markets.
Maui Wowi 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:
Maui Wowi 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 | 111 | 98 | 89 |
| Net Change YoY | -13 | -9 | |
| Franchised Units | 111 | 98 | 89 |
| Net Change YoY | -13 | -9 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Initial Investment
The Maui Wowi franchise offers a range of initial investment options, with costs ranging from $28,900 to $565,000. The initial franchise fee is set at $30,000, making it accessible for aspiring entrepreneurs looking to enter the franchise market. It's important to note that the cash required for starting a unit varies between $28,900 and $207,550, depending on the specific business model and location chosen.
Financial Performance
Franchisees can expect varying revenue outcomes, with average annual revenues reported at $263,686. The median annual revenue is $100,000, while some units achieve revenues as low as $36,000 and as high as $1,000,000. These figures highlight the potential for profitability within the Maui Wowi system, although results can vary significantly based on location and management.
Royalties and Fees
Maui Wowi charges a royalty fee of 6% on gross sales, along with a marketing fee of 15%. These fees contribute to the overall operational costs but are essential for maintaining brand presence and marketing efforts. Franchisees should factor these fees into their financial planning to ensure sustainable profitability.
Required Financial Qualifications
Aspiring franchisees must demonstrate a net worth between $200,000 and $500,000 to qualify for a Maui Wowi franchise. Additionally, having cash reserves of $28,900 to $207,550 is crucial to cover initial costs and operational expenses during the startup phase. This financial threshold helps ensure that franchisees are adequately prepared for the investment.
Breakeven and Return on Investment
The breakeven point for Maui Wowi franchisees is typically reached within 12 months. This quick return on investment is attractive for new franchisees, as they can begin to see profitability relatively early in their operations. The overall investment payback period is estimated at 24 months, allowing franchisees to plan their financial strategies effectively.
Franchise Growth
As of 2023, Maui Wowi operates 89 franchised units, showing a gradual decline from 111 units in 2021. The absence of corporate-owned units indicates a strong focus on franchising as the primary growth strategy. This model allows franchisees to benefit from brand recognition while providing opportunities for expansion in various markets.
Frequently Asked Questions
The initial investment for a Maui Wowi franchise ranges from $28,900 to $565,000. This includes the franchise fee of $30,000 and other startup costs.