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Rocket Fizz Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a Rocket Fizz Franchise?
To open a Rocket Fizz franchise, you will need to consider an initial investment ranging from $124,900 to $271,000. This includes a franchise fee of $54,000. Additionally, you should be prepared for ongoing expenses, including a 5% royalty fee and a 2% marketing fee. It’s crucial to have a minimum net worth of $300,000 to $500,000 and sufficient cash on hand to cover startup costs.
What Is the Average Revenue Potential for Rocket Fizz Franchisees?
Rocket Fizz franchisees can expect an average annual revenue of approximately $531,455, with a median revenue of $492,488. Revenue performance can vary significantly, with the lowest reported annual revenue at $168,627 and the highest reaching $1,409,907. Understanding this revenue potential can help you gauge the profitability of your investment.
What Are the Financial Metrics to Consider When Evaluating a Rocket Fizz Franchise?
When assessing a Rocket Fizz franchise, it’s essential to look at the financial metrics. The average operating expenses are reported at $1,017,288, which is notably high compared to the average revenue. Additionally, the breakeven time is approximately 18 months, and the investment payback period is around 25 months. These figures are vital for understanding the financial landscape and planning your cash flow.
How Many Units Are Currently Operating Under the Rocket Fizz Franchise Model?
As of 2023, Rocket Fizz operates a total of 85 franchised units. This is a growth from 79 units in 2021 and 81 units in 2022, indicating a steady expansion of the franchise. Notably, there are no corporate-owned units as of 2023, which highlights the franchise's focus on franchising rather than company-owned locations. Understanding the growth trajectory of the franchise can inform your decision-making process.
Rocket Fizz 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:
Rocket Fizz Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 81 | 82 | 85 |
| Net Change YoY | 1 | 3 | |
| Franchised Units | 79 | 81 | 85 |
| Net Change YoY | 2 | 4 | |
| Corporate Units | 2 | 1 | 0 |
| Net Change YoY | -1 | -1 |
Investment Overview
The Rocket Fizz franchise requires an initial investment ranging from $124,900 to $271,000. This includes a franchise fee of $54,000. Franchisees should also be prepared for ongoing costs, including a 5% royalty fee on gross sales and a 2% marketing fee. To qualify, aspiring franchisees need a net worth between $300,000 and $500,000, ensuring they have the financial stability to support their business.
Revenue Potential
Rocket Fizz franchises have demonstrated robust revenue potential, with average annual revenue per unit reaching $531,455. The median revenue stands at $492,488, while some units have reported revenues as low as $168,627 and as high as $1,409,907. This range indicates the brand's ability to cater to diverse markets and consumer preferences.
Breakeven and Payback
Franchisees can expect to break even within approximately 18 months of operation. The investment payback period is estimated at 25 months. These timelines are crucial for potential franchisees to consider, as they reflect the speed at which they can expect to recover their initial investment and start generating profit.
Franchise Growth
As of 2023, Rocket Fizz has expanded its footprint to 85 franchised units, up from 81 in 2022 and 79 in 2021. This steady growth indicates a strong market presence and increasing interest in the franchise model, making it an attractive opportunity for new investors looking to enter the beverage and candy retail sector.
Operating Expenses
The average annual operating expenses for a Rocket Fizz franchise total $1,017,288. Key expense categories include payroll, advertising, and outside services. Understanding these costs is essential for franchisees to effectively manage their finances and optimize their profitability.
Corporate Structure
Rocket Fizz operates under a franchise model, with a focus on providing a unique retail experience centered around nostalgic candies and craft sodas. The corporate entity has transitioned from operating company-owned units, with zero corporate units reported in 2023, to a fully franchised model, emphasizing its commitment to franchisee success and support.
Frequently Asked Questions
The initial investment for a Rocket Fizz franchise ranges from $124,900 to $271,000, which includes the franchise fee and other startup costs.