|
Rhea Lana's Franchise ProfileChildren’s Franchises > Children's Fitness |
What Are the Initial Investment Requirements for a Rhea Lana's Franchise?
To start a Rhea Lana's franchise, you need to prepare for an initial investment ranging from $28,675 to $45,900. This includes a franchise fee of $19,500. Additionally, potential franchisees should have a net worth between $50,000 and $200,000. It’s important to ensure you have the necessary cash available to cover both the initial investment and ongoing operational costs.
What Are the Financial Performance Metrics for Rhea Lana's Franchise Units?
On average, Rhea Lana's franchise units generate an annual revenue of approximately $244,622, with a median revenue of $61,013. The breakeven time for new franchisees is estimated at 16 months, while investment payback can occur within 12 months. Understanding these figures can help potential franchisees gauge the financial viability of their investment.
What Are the Ongoing Fees Associated with a Rhea Lana's Franchise?
Franchisees of Rhea Lana's are subject to a royalty fee of 3% on gross sales, in addition to a marketing fee of 2%. These ongoing fees are essential for maintaining brand presence and operational support. It's crucial to factor these costs into your financial projections when considering the overall profitability of the franchise.
How Does Rhea Lana's Franchise Support Its Franchisees?
Rhea Lana's provides comprehensive support to its franchisees, including training programs, marketing assistance, and operational guidance. The franchise model is designed to empower franchise owners, whether they are new to the business or seasoned investors. This support system is vital for navigating the challenges of running a franchise and maximizing profitability.
Rhea Lana's 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.
Industry ⓘ
Category ⓘ
Funding Year ⓘ
Parent Company ⓘ
Leadership ⓘ
Corporate Address ⓘ
Initial Investment ⓘ
Franchise Fee ⓘ
Royalty Fee ⓘ
Marketing Fee ⓘ
Cash Required ⓘ
Net Worth Required ⓘ
Average Revenue ⓘ
Median Revenue ⓘ
Lowest Revenue ⓘ
Highest Revenue ⓘ
Breakeven Time ⓘ
Investment Payback ⓘ
Rhea Lana's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
Total Units ⓘ
Franchised Units ⓘ
Corporate Units ⓘ
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 100 | 103 | 114 |
| Net Change YoY | +3 | +11 | |
| Franchised Units | 98 | 101 | 112 |
| Net Change YoY | +3 | +11 | |
| Corporate Units | 2 | 2 | 2 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Rhea Lana's is a leading children's consignment event franchise that specializes in providing high-quality, gently used children's clothing, toys, and gear. Founded in 1997, Rhea Lana's has grown into a recognized brand with a focus on creating a sustainable shopping experience for families. The franchise operates through seasonal events, allowing franchisees to connect with their local communities while promoting eco-friendly practices.
Investment Details
The initial investment for a Rhea Lana's franchise ranges from $28,675 to $45,900, with an initial franchise fee of $19,500. Franchisees are required to have a net worth between $50,000 and $200,000. The ongoing royalty fee is set at 3%, along with a marketing fee of 2%, allowing franchisees to benefit from the brand's established marketing strategies.
Financial Performance
Rhea Lana's franchises report an average annual revenue of $244,622, with a median revenue of $61,013. The revenue figures demonstrate the brand's strong market presence and profitability potential. Franchisees can expect a breakeven time of approximately 16 months, with an investment payback period of just 12 months, indicating a favorable return on investment.
Growth Trajectory
The franchise has shown consistent growth in its number of franchised units, increasing from 98 in 2021 to 112 in 2023. This upward trend reflects the brand's appeal and the effectiveness of its business model. Rhea Lana's continues to expand its footprint, providing aspiring entrepreneurs with a viable opportunity to enter the children's retail market.
Operational Insights
Rhea Lana's emphasizes a community-oriented approach, with franchisees managing seasonal events that promote local engagement. The operational model allows franchisees to work flexibly, hosting events that cater to their specific market needs. This adaptability is key to maintaining customer loyalty and driving sales during each event cycle.
Brand Mission
Rhea Lana's mission is to provide families with a sustainable shopping option while fostering a sense of community. The brand is dedicated to offering high-quality children's products at affordable prices, encouraging recycling and reusing items to minimize waste. Through its events, Rhea Lana's aims to create a positive impact on both families and the environment.
Frequently Asked Questions
The initial investment for a Rhea Lana's franchise ranges from $28,675 to $45,900, which includes a franchise fee of $19,500.