Get Franchise Bundle
Get Full Bundle:
$99 $79
$79 $49
$49 $29

TOTAL:

Description
Investment Icon

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.

Fees Icon

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.

Revenue Icon

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.

Breakeven Icon

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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$250,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

31 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$35,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$147,200 - $1,319,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$147,200 - $1,249,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,241,865
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$582,914
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,535,350
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$140,477
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Pizza
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

John Rosati
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

1652 South Eastwood Drive, Woodstock, IL 60098
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1995
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Rosati's Franchising, Inc.

Rosati's Franchising, Inc. Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

127
The number of locations owned by independent franchisees.

Franchised Units i

126
The number of locations owned and run by the franchisor.

Corporate Units i

1
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 About

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.

Potential About

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.

Metrics About

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.

Fees About

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.

Breakeven About

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.

Units About

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.