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Proforma Franchise ProfileBusiness Services Franchises > Printing Services |
What Are the Initial Costs to Open This Franchise?
To open a franchise, you’ll need to budget for a range of initial costs. The franchise fee is set at $34,500, while the overall initial investment can vary significantly, ranging from $7,030 to $27,695. It’s essential to have cash on hand within this range, and a net worth between $416,667 and $1,000,000 is required. Understanding these financial commitments will help you assess whether this franchise aligns with your investment capabilities.
What Are the Ongoing Fees and Financial Expectations?
As a franchisee, you will encounter ongoing fees that contribute to the overall financial structure of your business. A royalty fee of 9% of your revenue will be due, along with a marketing fee of 1%. These fees support brand marketing and operational assistance, which can be critical for your franchise's success. It’s important to factor these costs into your financial planning to ensure sustainable profitability.
How Profitable Is This Franchise Opportunity?
The average annual revenue per unit stands at an impressive $39,028,000, with a median revenue of $75,000. However, revenue can vary widely, ranging from $40,000 to $1,000,000 annually. The breakeven time is relatively short at just 6 months, and with an investment payback period of 12 months, this franchise opportunity could present a lucrative option for the right investor. Understanding these figures will help you gauge the potential return on your investment.
What Support Does the Franchise Provide?
Franchisees benefit from a comprehensive support system designed to facilitate operational success. The franchise offers assistance in various areas, including vendor support, marketing strategies, and administrative services. This support structure is reflected in the average annual running expenses, which total $33,398,600. Access to ongoing training and resources can significantly enhance your ability to navigate the challenges of franchise ownership and thrive in your market.
Proforma 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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Proforma 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 | 567 | 542 | 526 |
| Net Change YoY | -25 | -16 | |
| Franchised Units | 567 | 542 | 526 |
| Net Change YoY | -25 | -16 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The initial investment for this franchise ranges from $7,030 to $27,695, allowing aspiring entrepreneurs to enter the market with varying financial commitments. The franchise fee is set at $34,500, which grants franchisees access to the brand's established systems and support.
Financial Performance
Franchise units generate an average annual revenue of $39,028,000, with a median annual revenue of $75,000. The revenue figures indicate robust sales potential, although the lowest annual revenue reported is $40,000, and the highest is $1,000,000, showcasing the variability in unit performance.
Ongoing Fees
Franchisees are required to pay a royalty fee of 9.00% on gross sales, along with a marketing fee of 1.00%. These fees contribute to the ongoing support and marketing efforts that help drive sales and brand recognition across all units.
Financial Requirements
To qualify for this franchise, potential franchisees must demonstrate a net worth between $416,667 and $1,000,000. Additionally, a cash requirement of $7,030 to $27,695 ensures that franchisees have sufficient liquidity to cover initial costs and operational expenses.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 6 months of operation. The investment payback period is estimated at 12 months, indicating a relatively quick return on investment, which is appealing to new franchisees looking for timely profitability.
Franchise Growth
The franchise has shown a gradual decline in total units, from 567 in 2021 to 526 in 2023. Despite this decrease, the franchise remains entirely franchised with no corporate-owned units, highlighting a commitment to franchisee-led growth and operations.
Frequently Asked Questions
The initial investment for a Proforma franchise ranges from $7,030 to $27,695, including the franchise fee of $34,500.