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Poolwerx Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Poolwerx Franchise?
To open a Poolwerx franchise, prospective franchisees should prepare for an initial investment ranging from $182,072 to $430,322. This includes a franchise fee of $49,500, alongside ongoing expenses such as a 7% royalty fee and a 3% marketing fee. It's essential to have a net worth between $500,000 and $1,000,000 to meet the financial prerequisites for franchise ownership.
What Is the Revenue Potential for a Poolwerx Franchise?
Poolwerx franchises have an impressive average annual revenue of $2,154,423, with a median annual revenue of $1,767,986. The revenue can vary significantly, with the lowest annual revenue reported at $152,548 and the highest reaching $7,524,054. This revenue potential underscores the opportunity for franchisees to achieve substantial profitability in the pool services industry.
What Are the Financial Metrics for Poolwerx Franchisees?
Franchisees can expect to see a breakeven point within 24 months, making it a relatively quick return on investment. The average EBITDA stands at $850,347, representing 21.6% of total revenue, while operating expenses account for 78.4% of revenue at $3,093,651. Understanding these metrics is crucial for potential franchisees to assess financial viability and operational efficiency.
How Has Poolwerx Expanded Its Franchise Network?
Poolwerx has demonstrated steady growth in its franchise network, with 61 franchised units in 2020, 59 in 2021, and 62 in 2022. The company also operates a few corporate units, which can provide additional support and resources to franchisees. This expansion reflects the brand's commitment to increasing its market presence and supporting its franchisees in achieving success.
Poolwerx 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:
Poolwerx Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 63 | 61 | 63 |
| Net Change YoY | -2 | 2 | |
| Franchised Units | 61 | 59 | 62 |
| Net Change YoY | -2 | 3 | |
| Corporate Units | 2 | 2 | 1 |
| Net Change YoY | 0 | -1 |
Investment Overview
The initial investment required to open a Poolwerx franchise ranges from $182,072 to $430,322. This includes a franchise fee of $49,500, with ongoing royalty and marketing fees set at 7% and 3% of gross sales, respectively. Potential franchisees should also have a net worth between $500,000 and $1,000,000 to qualify for ownership.
Financial Performance
Poolwerx franchises generate significant revenue, with an average annual revenue per unit of approximately $2,154,423. The median annual revenue is reported at $1,767,986, while revenues can vary widely, ranging from $152,548 to as high as $7,524,054. This financial potential can lead to a breakeven period of about 24 months.
Franchise Growth
The Poolwerx franchise network has seen steady growth in the number of franchised units, with 62 units reported in 2022, up from 59 in 2021 and 61 in 2020. This indicates a stable interest in the brand and its offerings, reflecting a solid foundation for future expansion.
Corporate Structure
Poolwerx operates with a mix of franchised and corporate-owned units. As of 2022, there were 62 franchised units and only 1 corporate unit, showing a strong franchise model focused on empowering individual operators while maintaining a small corporate presence.
Operational Insights
Average operating expenses for a Poolwerx franchise amount to approximately $3,093,651, accounting for 78.4% of revenue. The EBITDA margin stands at 21.6%, indicating a healthy profit potential after covering operational costs. Understanding these metrics is crucial for franchisees aiming to optimize their financial performance.
Support and Training
Poolwerx provides comprehensive support and training for its franchisees, equipping them with the necessary tools and knowledge to succeed. From initial onboarding to ongoing operational guidance, franchisees can expect a robust support system designed to enhance their business acumen and operational efficiency.
Frequently Asked Questions
The initial investment for a Poolwerx franchise ranges from $182,072 to $430,322, which includes the initial franchise fee of $49,500.