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PatchMaster Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a PatchMaster Franchise?
To open a PatchMaster franchise, you should prepare for an initial investment ranging from $87,350 to $188,350. This includes a franchise fee of $49,500, and you will also need to have cash readily available between $87,350 and $112,850. Additionally, a net worth of $200,000 to $400,000 is required to ensure you have the financial stability to support your business.
What Are the Ongoing Fees for PatchMaster Franchisees?
As a PatchMaster franchisee, you will be responsible for ongoing fees that include a royalty fee of 9% of your unit's revenue and a marketing fee of 1%. These fees contribute to the overall support and marketing efforts provided by the franchise, ensuring brand consistency and customer engagement.
What Is the Financial Performance of a PatchMaster Franchise?
The average annual revenue for a PatchMaster franchise unit is approximately $309,603, with a median revenue of $254,968. While the lowest annual revenue recorded is $52,497, the highest can reach up to $1,074,775. This range indicates the potential for substantial earnings depending on various operational factors and market conditions.
How Quickly Can You Expect to Break Even with a PatchMaster Franchise?
Franchisees can expect to break even within 12 months of operation, with an investment payback period of around 24 months. This relatively quick return on investment highlights the potential for profitability in the PatchMaster business model, making it an attractive option for aspiring entrepreneurs in the franchise space.
PatchMaster 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.
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PatchMaster Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 75 | 105 | 117 |
| Net Change YoY | 30 | 12 | |
| Franchised Units | 60 | 91 | 99 |
| Net Change YoY | 31 | 8 | |
| Corporate Units | 15 | 14 | 18 |
| Net Change YoY | -1 | 4 |
Investment Overview
The PatchMaster franchise offers a low to moderate initial investment, ranging from $87,350 to $188,350. The initial franchise fee is set at $49,500, with ongoing royalty fees of 9% and a marketing fee of 1%. Prospective franchisees should be prepared with cash reserves between $87,350 and $112,850, and a net worth requirement of $200,000 to $400,000 to ensure financial readiness for the business.
Revenue Potential
Franchisees can expect strong revenue potential, with an average annual revenue per unit of $309,603 and a median revenue of $254,968. The franchise demonstrates significant variability in revenue, with the lowest annual revenue recorded at $52,497 and the highest reaching $1,074,775. This wide range highlights both the opportunities and challenges within the PatchMaster business model.
Breakeven and Payback
PatchMaster franchises typically achieve breakeven within 12 months of operation, indicating a relatively quick return on initial investment. The average investment payback period is estimated at 24 months, allowing franchisees to recoup their costs and begin generating profit within a reasonable timeframe.
Franchise Growth
The PatchMaster franchise has shown consistent growth over recent years, with 60 franchised units in 2021, increasing to 99 in 2023. This growth trend reflects the brand's expanding market presence and the increasing interest from entrepreneurs seeking to invest in the home repair and maintenance sector.
Corporate Structure
PatchMaster operates with a mix of franchised and corporate-owned units. As of 2023, there are 99 franchised units and 18 corporate units, providing a balanced approach to brand management and support for franchisees. This structure allows for a robust support system while also enabling the brand to maintain control over operational standards.
Financial Performance
The financial health of PatchMaster franchises is underscored by a gross profit margin of 31%, with average annual operating expenses totaling $465,168. Key expenses include professional fees and marketing, which are essential for maintaining competitive positioning in the market. Understanding these financial metrics is crucial for potential franchisees to assess the profitability and sustainability of their investment.
Frequently Asked Questions
The initial investment for a PatchMaster franchise ranges from $87,350 to $188,350, which includes the franchise fee and other startup costs.