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Mrs. Fields Franchise ProfileRetail Franchises > Specialty Retail |
What are the Initial Investment Requirements for a Mrs. Fields Franchise?
To open a Mrs. Fields franchise, you will need to prepare for a total initial investment ranging from $188,860 to $495,850. This includes a franchise fee of $35,000. Additionally, you'll need to have liquid cash available between $311,500 and $495,850 and a net worth of $500,000 to $1,000,000 to qualify for ownership. Understanding these financial commitments is crucial for potential franchisees to ensure they can sustain the business in its early stages.
What are the Ongoing Fees Associated with a Mrs. Fields Franchise?
Franchisees of Mrs. Fields are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 3%. These fees contribute to the brand's overall marketing efforts and support services, helping franchisees maintain a competitive edge in the market. It's important to factor these ongoing costs into your financial planning to ensure the long-term viability of your franchise.
What is the Average Revenue and Profitability for a Mrs. Fields Franchise Unit?
On average, a Mrs. Fields franchise unit generates annual revenue of approximately $378,232, with a median revenue of $361,497. The cost of goods sold (COGS) is around $237,000, resulting in a gross profit margin of about 37.3%. After accounting for operating expenses, franchisees can expect an EBITDA of approximately $41,232, which translates to about 10.9% of revenue. These figures highlight the potential profitability of owning a Mrs. Fields franchise, but individual results may vary based on location and management.
What is the Breakeven Timeline for a Mrs. Fields Franchise?
The breakeven period for a Mrs. Fields franchise is estimated at around 14 months, with an investment payback period of approximately 28 months. This timeline indicates that franchisees can expect to recover their initial investment within two years, assuming the business performs at or above average levels. Understanding these timelines is essential for potential franchisees to set realistic financial expectations and goals.
Mrs. Fields 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:
Mrs. Fields 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 | 128 | 125 | 125 |
| Net Change YoY | -3 | 0 | |
| Franchised Units | 128 | 125 | 125 |
| Net Change YoY | -3 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Mrs. Fields is a renowned franchise chain specializing in freshly baked cookies and gourmet treats. Established in 1977, the brand has built a loyal customer base through its commitment to quality and unique recipes. With a focus on providing a warm and inviting atmosphere, Mrs. Fields locations offer a delightful experience for cookie lovers, making it a popular choice for both franchisees and customers alike.
Investment Requirements
To open a Mrs. Fields franchise, potential franchisees should be prepared for a total initial investment ranging from $188,860 to $495,850, which includes a franchise fee of $35,000. Franchisees must have a minimum cash requirement of $311,500 and a net worth between $500,000 and $1,000,000. This investment structure allows franchisees to tap into a well-established brand with a strong market presence.
Royalty and Marketing Fees
Mrs. Fields franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees contribute to the overall branding and marketing efforts that help drive customer traffic to franchise locations, ensuring that franchisees benefit from the collective strength of the Mrs. Fields brand.
Financial Performance
On average, Mrs. Fields franchise units generate annual revenues of approximately $378,232, with a median revenue of $361,497. The financial performance highlights the brand's potential for profitability, with the highest annual revenue reaching $1,189,028. Franchisees can expect to see a breakeven point in about 14 months, with an investment payback period of approximately 28 months.
Operational Insights
Franchisees can expect average operating expenses to be around $100,000 annually, which constitutes about 26.4% of total revenue. The cost of goods sold (COGS) is approximately $237,000, making up roughly 62.7% of revenue. Understanding these operational metrics is crucial for franchisees to manage their businesses effectively and optimize profitability.
Franchise Growth
As of 2023, there are 125 franchised units of Mrs. Fields, with no corporate-owned locations. This consistent number of franchised units over the past few years indicates a stable franchise model. The brand's focus on franchising allows for scalability and growth, providing opportunities for aspiring entrepreneurs to join a successful network in the baked goods market.
Frequently Asked Questions
The initial investment for a Mrs. Fields franchise ranges from $188,860 to $495,850, which includes the franchise fee and other startup costs.