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Rosati's Franchising, Inc. Franchise ProfileFood Franchises > Pizza |
What Are the Initial Investment Requirements for a Rosati's Franchise?
To own a Rosati's franchise, you will need to prepare for a range of initial investments that can vary significantly. The total initial investment can range from $147,200 to $1,319,000, which includes a franchise fee of $35,000. Prospective franchisees should also consider additional costs such as a royalty fee of 5% and a marketing fee of 5%. It's essential to have a cash reserve between $147,200 and $1,249,000, along with a net worth of $250,000 to $1,000,000 to meet the financial requirements set by the franchisor.
What Is the Average Revenue Potential for Rosati's Franchisees?
Rosati's franchisees can expect varying levels of revenue, with the average annual revenue per unit reported at $1,241,865. However, it's important to note that revenue can fluctuate widely, with the lowest annual revenue recorded at $140,477 and the highest at $2,535,350. This substantial range underscores the importance of location, management, and market demand in determining a franchise's financial success. Understanding these figures can help potential franchisees gauge the earning potential of their investment.
What Are the Operational Costs Associated with Running a Rosati's Franchise?
Running a Rosati's franchise involves several operational costs that franchisees should be prepared for. These expenses can include rent, utilities, insurance, office supplies, and professional fees, totaling between $44,500 and $199,000 annually. For instance, rent can range from $12,000 to $36,000, while professional fees might cost between $10,000 and $30,000. Being aware of these ongoing expenses is crucial for effective financial planning and ensuring profitability in the long run.
What Is the Breakeven and Payback Timeline for a Rosati's Franchise?
The breakeven time for a Rosati's franchise is estimated at 12 months, which indicates that franchisees can expect to recover their initial investment relatively quickly if operations are managed effectively. Furthermore, the investment payback period is around 31 months. This timeline provides potential franchisees with a clearer picture of how long it may take to start seeing a return on their investment, helping them make informed financial decisions.
Rosati's Franchising, Inc. 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:
Rosati's Franchising, Inc. 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 | 0 | 125 | 127 |
| Net Change YoY | 125 | 2 | |
| Franchised Units | 0 | 123 | 126 |
| Net Change YoY | 123 | 3 | |
| Corporate Units | 0 | 2 | 1 |
| Net Change YoY | 2 | -1 |
Investment Overview
Rosati's Franchising, Inc. offers a range of initial investment options, with costs ranging from $147,200 to $1,319,000. The initial franchise fee is set at $35,000, while ongoing royalty and marketing fees are both 5% of gross sales. Prospective franchisees should prepare for a cash requirement between $147,200 and $1,249,000, alongside a net worth requirement of $250,000 to $1,000,000.
Revenue Potential
The average annual revenue per unit for Rosati's franchises is approximately $1,241,865, with a median revenue of $582,914. This indicates a strong potential for profitability, as the lowest annual revenue recorded is $140,477, while the highest reaches $2,535,350. These figures highlight the diverse earning capabilities within the franchise system.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation, a relatively quick turnaround that highlights the business's potential for success. Additionally, the investment payback period is estimated at 31 months, allowing franchisees to recoup their initial investment in a reasonable timeframe, assuming consistent performance.
Franchise Growth
Rosati's has shown significant growth in its franchised units, increasing from 0 units in 2021 to 126 units in 2023. This growth trajectory demonstrates the brand's expanding market presence and appeal to new franchisees. As of 2023, there is a total of 127 units, including both franchised and corporate locations.
Operational Expenses
Franchisees should budget for a variety of operational expenses, with total annual costs ranging from $44,500 to $199,000. Key expenses include rent (between $12,000 and $36,000), utilities, insurance, and professional fees. Understanding these costs is critical for effective financial planning and ensuring long-term profitability.
Financial Performance Metrics
The average profit and loss metrics for Rosati's franchises reveal a gross profit margin of 40%, with operating expenses accounting for 37.5% of revenue. This results in an EBITDA of $16,244, representing 2.4% of total revenue. These metrics provide valuable insights into the financial health and operational efficiency of the franchise model, helping potential investors gauge the viability of their investment.
Frequently Asked Questions
The initial investment for a Rosati's franchise ranges from $147,200 to $1,319,000. This includes the franchise fee and various startup costs such as equipment and leasehold improvements.