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NrGize Lifestyle Cafe Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a NrGize Lifestyle Cafe Franchise?
To open a NrGize Lifestyle Cafe franchise, you should prepare for an initial investment ranging from $106,900 to $434,300. This includes a franchise fee of $30,000. Additionally, you will need to have liquid cash available between $5,000 and $15,000 and a net worth of $300,000 to $500,000. Understanding these financial commitments is crucial for aspiring franchisees as it lays the groundwork for your business journey.
What Are the Ongoing Fees and Financial Performance Metrics?
Franchisees are required to pay a 6% royalty fee on gross sales and a 2% marketing fee. The average annual revenue per unit is reported at $263,686, with a median of $300,000. While the lowest annual revenue stands at $150,000, some units have achieved as much as $1,200,000. These figures highlight the potential profitability of the franchise, but they also emphasize the importance of effective operational management to maximize revenue.
What Is the Expected Breakeven and Payback Period?
Franchisees can expect to reach breakeven within approximately 18 months of opening their unit. The investment payback period is notably quicker, averaging around 12 months. This favorable timeline can be an attractive feature for potential investors, as it suggests a relatively swift return on investment, allowing franchisees to reinvest earnings into growing their business further.
How Many Units Are Currently Operating Under the NrGize Lifestyle Cafe Brand?
As of 2023, there are 57 franchised units of NrGize Lifestyle Cafe, showing a gradual decline from 65 units in 2021 and 60 units in 2022. Notably, there are no corporate-owned units, indicating a focus on franchising as the primary growth strategy. This trend may reflect market conditions or operational challenges, making it essential for potential franchisees to assess the brand's stability and growth trajectory before investing.
NrGize Lifestyle Cafe 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:
NrGize Lifestyle Cafe 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 | 65 | 60 | 57 |
| Net Change YoY | -5 | -3 | |
| Franchised Units | 65 | 60 | 57 |
| Net Change YoY | -5 | -3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The NrGize Lifestyle Cafe franchise offers a low to moderate initial investment range of $106,900 to $434,300. With an initial franchise fee of $30,000, prospective franchisees should also budget for a cash reserve between $5,000 and $15,000. This investment structure makes it accessible for a variety of entrepreneurs looking to enter the health-focused café market.
Financial Performance
The average annual revenue per unit for NrGize Lifestyle Cafe is approximately $263,686, with a median annual revenue of $300,000. Units can generate revenue ranging from $150,000 to as high as $1,200,000. The breakeven time is estimated at 18 months, while the investment payback period can be as short as 12 months, providing a promising financial outlook for franchisees.
Ongoing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 2%. This structure ensures that franchisees contribute to the overall brand marketing while benefiting from a shared advertising strategy that enhances visibility and customer reach.
Operational Metrics
The average operating expenses for a NrGize Lifestyle Cafe unit total approximately $194,664 annually. Key expense categories include wages and benefits, rent, and marketing costs. Understanding these metrics is crucial for franchisees to effectively manage their operations and maintain profitability.
Franchise Growth
As of 2023, the NrGize Lifestyle Cafe has seen a gradual decline in the number of franchised units, from 65 in 2021 to 57 in 2023. This trend highlights the importance of strategic market entry and operational efficiency for current and prospective franchisees to ensure sustainable growth.
Brand Mission
NrGize Lifestyle Cafe is dedicated to promoting a healthy lifestyle through its menu offerings, which focus on nutritious and energizing food and beverages. The brand aims to create a welcoming environment that encourages customers to make healthier choices while enjoying a vibrant café experience.
Frequently Asked Questions
The initial investment for a NrGize Lifestyle Cafe franchise ranges from $106,900 to $434,300, which includes a franchise fee of $30,000.