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Precision Door Service Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Precision Door Service Franchise?
To open a Precision Door Service franchise, you should be prepared for a total initial investment ranging from $145,350 to $371,850. This includes a franchise fee of $67,500. Additionally, you will need to have cash readily available between $145,350 and $317,850 and a net worth between $300,000 and $500,000. Understanding these financial commitments is crucial to ensure you are set up for success from the start.
What Are the Ongoing Fees Associated with a Precision Door Service Franchise?
As a franchisee, you will be responsible for ongoing fees, including a royalty fee of 6% and a marketing fee of 2% of your revenue. These fees contribute to the support and resources provided by the franchise, helping you to effectively market your business and maintain brand standards. It's essential to factor these fees into your financial planning to ensure your franchise remains profitable.
What Is the Average Revenue Potential for a Precision Door Service Franchise?
Precision Door Service franchises have demonstrated strong revenue potential, with an average annual revenue of approximately $1,380,884 per unit. The median annual revenue stands at $1,346,814, while some units have reported revenues as low as $225,942 and as high as $39,976,940. This range highlights the potential for significant earnings, depending on location and management practices.
How Long Does It Take to Break Even with a Precision Door Service Franchise?
Franchisees can expect to reach their breakeven point in about 18 months, with an investment payback period of approximately 34 months. These timelines indicate a relatively quick return on investment, making Precision Door Service an appealing option for those looking to enter the franchise market with a solid business model and support system.
Precision Door Service 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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Precision Door Service 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 | 102 | 108 | 111 |
| Net Change YoY | 6 | 3 | |
| Franchised Units | 102 | 108 | 111 |
| Net Change YoY | 6 | 3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Precision Door Service franchise offers a range of initial investment costs, from $145,350 to $371,850. The franchise fee is set at $67,500, with ongoing royalty fees of 6% and a marketing fee of 2%. Potential franchisees should be prepared with cash reserves between $145,350 and $317,850, and a net worth requirement of $300,000 to $500,000 to qualify for ownership.
Revenue Potential
On average, a Precision Door Service unit generates annual revenues of approximately $1,380,883.69, with a median revenue of $1,346,814. The revenue range is significant, with the lowest reported annual revenue at $225,942 and the highest reaching nearly $40 million. This potential for high earnings makes Precision Door Service an attractive option for investors looking for solid returns.
Breakeven and Payback
Franchisees can expect to reach their breakeven point within approximately 18 months of operation. The investment payback period averages around 34 months, indicating a relatively quick return on investment compared to many other franchise opportunities. This efficiency in recouping initial costs can be a compelling factor for potential franchisees.
Franchise Growth
Precision Door Service has shown consistent growth in its franchise network, increasing from 102 franchised units in 2021 to 111 in 2023. This upward trend reflects the brand's expanding market presence and the increasing demand for garage door services, suggesting a positive outlook for future franchisees.
Financial Performance
The average annual revenue for Precision Door Service franchises is $451,879, with a gross profit margin of 84.8%. Operating expenses average around $351,040, leading to a net income of approximately $166,470, which represents 36.8% of revenue. These figures highlight the franchise's strong financial performance and profitability potential for owners.
Ongoing Support
Precision Door Service provides comprehensive support to franchisees, ensuring they have the tools and resources necessary for success. This includes training programs, marketing assistance, and operational guidance, which help franchisees navigate the challenges of running a business and optimize their performance in the competitive garage door service industry.
Frequently Asked Questions
The initial investment for a Precision Door Service franchise ranges from $145,350 to $371,850, which includes the franchise fee and other startup costs.