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OpenWorks Franchise ProfileCleaning Franchises > Commercial Cleaning |
What is the Initial Investment for an OpenWorks Franchise?
To start an OpenWorks franchise, potential franchisees should expect an initial investment ranging from $4,250 to $134,480. This includes a franchise fee that can vary significantly, from $2,500 to $72,000. It’s crucial to prepare for these costs, as they encompass not only the franchise fee but also other startup expenses necessary for launching your business.
What are the Financial Performance Metrics for OpenWorks?
OpenWorks franchises have shown an average annual revenue of approximately $185,905, with a median revenue of $105,884,557. The lowest reported annual revenue per unit is $6,000, while the highest reaches $113,744,653. Understanding these figures can help franchisees set realistic financial expectations and assess their potential return on investment.
What are the Ongoing Fees Associated with OpenWorks?
Franchisees of OpenWorks are required to pay an 8% royalty fee on their revenue, along with a 3% marketing fee. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts that drive customer traffic. It’s important for franchisees to factor these costs into their financial planning to ensure profitability.
How Long Does it Take to Break Even with an OpenWorks Franchise?
Franchisees can expect a breakeven period of about 12 months, with an investment payback time of approximately 30 months. This timeline is crucial for aspiring franchise owners to consider, as it indicates how long it may take before they start seeing a return on their initial investment. Understanding these timelines can help in planning and managing financial expectations.
OpenWorks 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:
OpenWorks 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 | 642 | 726 | 654 |
| Net Change YoY | 84 | -72 | |
| Franchised Units | 642 | 726 | 654 |
| Net Change YoY | 84 | -72 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The OpenWorks franchise offers a range of investment options, with initial costs ranging from $4,250 to $134,480. The franchise fee varies between $2,500 and $72,000, which provides access to the brand and operational support. Potential franchisees should also be prepared for ongoing royalty fees of 8% of gross sales and a marketing fee of 3%.
Financial Performance
OpenWorks franchises have demonstrated strong financial potential, with an average annual revenue of $185,905 per unit. The median revenue stands at $105,884,557, showcasing the brand's ability to generate significant income. However, it’s important to note that revenues can vary widely, with the lowest recorded at $6,000 and the highest at $113,744,653.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 30 months, allowing owners to recoup their initial investment relatively quickly compared to many other businesses.
Franchise Growth
OpenWorks has seen consistent growth in its franchised units, increasing from 642 in 2021 to 726 in 2022, before settling at 654 in 2023. This trend indicates a strong market presence and a solid foundation for future expansion, providing new franchisees with a reliable brand in a competitive landscape.
Corporate Structure
OpenWorks operates as a franchise model with no company-owned units reported. This structure allows franchisees to benefit from a fully franchised system, focusing on local market needs while leveraging the brand's established reputation for quality and service.
Required Qualifications
Aspiring franchisees need to demonstrate a net worth between $250,000 and $500,000 to qualify for an OpenWorks franchise. This requirement ensures that candidates have the financial stability necessary to support their business and contribute to its growth and success.
Frequently Asked Questions
The initial investment for an OpenWorks franchise ranges from $4,250 to $134,480, depending on various factors such as location and setup requirements.