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Patrice & Associates Franchise ProfileBusiness Services Franchises > Staffing |
What Are the Initial Investment Costs for a Patrice & Associates Franchise?
To open a Patrice & Associates franchise, you should anticipate an initial investment ranging from $90,050 to $92,750. This includes a franchise fee of $65,000, which grants you access to the brand and its support systems. You will also need to consider ongoing costs, including a royalty fee of 10% on your revenue and a marketing fee of 2%. It’s essential to ensure you have the necessary cash on hand, as well as a net worth between $200,000 and $400,000 to qualify for franchise ownership.
What Is the Potential Revenue for a Patrice & Associates Franchise?
Franchisees of Patrice & Associates can expect an average annual revenue of approximately $150,000 per unit, with the potential for revenue to range significantly. The lowest annual revenue reported is $250,000, while the highest can reach up to $50,000. Understanding these figures is crucial for evaluating the financial viability of the franchise and determining if it aligns with your investment goals.
What Are the Financial Metrics and Performance Indicators?
The financial performance of a Patrice & Associates franchise shows a gross profit margin of 80%, which translates to about $120,000 after accounting for a cost of goods sold (COGS) of $30,000. Operating expenses are estimated at $60,000, leading to an EBITDA of $60,000, or 40% of revenue. This robust financial structure highlights the potential for profitability, making it an attractive option for aspiring franchisees.
How Long Will It Take to Recoup Your Investment?
Franchisees can expect to break even within 12 months of operation, with an investment payback period of around 24 months. This timeline is critical for potential investors to consider, as it indicates how quickly they might start seeing a return on their investment. The ability to recoup costs efficiently can be a significant factor in deciding to pursue a franchise opportunity with Patrice & Associates.
Patrice & Associates 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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Patrice & Associates 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 | 178 | 171 | 196 |
| Net Change YoY | -7 | 25 | |
| Franchised Units | 178 | 171 | 196 |
| Net Change YoY | -7 | 25 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Patrice & Associates offers a low initial investment range of $90,050 to $92,750, making it an accessible opportunity for aspiring franchisees. The initial franchise fee is set at $65,000, with ongoing royalty fees of 10% on gross sales and a 2% marketing fee. This structure allows franchisees to benefit from the brand’s established reputation while managing their financial commitments effectively.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $150,000 per unit, with a median revenue of $9,285. The revenue range varies significantly, with the lowest reported annual revenue at $250,000 and the highest at $50,000. This variability highlights the potential for growth and the importance of effective operational management to maximize profitability.
Financial Requirements
To qualify for a Patrice & Associates franchise, candidates must have a net worth between $200,000 and $400,000. Additionally, prospective franchisees should have access to cash reserves of $90,050 to $92,750 to cover initial investment costs. These financial prerequisites ensure that franchisees are adequately prepared to support their business from the outset.
Operational Performance
The average franchise unit at Patrice & Associates has a breakeven time of approximately 12 months, indicating a relatively quick path to profitability. The investment payback period is estimated at 24 months, allowing franchisees to recoup their initial investment within two years, provided they adhere to the brand’s operational guidelines and best practices.
Franchise Growth
Patrice & Associates has demonstrated steady growth in the number of franchised units, increasing from 178 in 2021 to 196 in 2023. This upward trend reflects the brand’s appeal and the successful support provided to franchisees, positioning it as a viable option for those looking to enter the franchise market.
Average Expenses
Franchisees can anticipate average running expenses totaling about $11,150 annually. Key expense categories include office equipment and supplies, legal and accounting fees, and initial inventory. Understanding these costs is crucial for effective budgeting and financial planning, helping franchisees maintain healthy profit margins while operating their businesses.
Frequently Asked Questions
The initial investment for a Patrice & Associates franchise ranges from $90,050 to $92,750, which includes a franchise fee of $65,000.