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Description
Investment Icon

What Are the Initial Investment Requirements for a Sculpture Hospitality Franchise?

To open a Sculpture Hospitality franchise, you’ll need an initial investment ranging from $45,500 to $64,500. This includes a franchise fee of $25,000. Additionally, you should have cash reserves between $45,500 and $49,500 and a net worth of $250,000 to $500,000. Understanding these financial requirements is crucial for aspiring franchisees to gauge their readiness for this investment opportunity.

Fees Icon

What Are the Ongoing Fees Associated with Sculpture Hospitality?

As a franchisee, you will be responsible for ongoing fees, including an 8% royalty fee on gross sales and a 3% marketing fee. These fees contribute to the brand’s overall marketing efforts and operational support, which can be vital for sustaining business growth and brand recognition in your local market. It’s essential to factor these fees into your financial planning to ensure profitability.

Revenue Icon

What is the Average Revenue Potential for a Sculpture Hospitality Franchise?

Sculpture Hospitality franchises have shown promising revenue potential, with an average annual revenue of approximately $1,758,408 per unit. The median annual revenue stands at $1,429,000, indicating a solid financial outlook for franchisees. Understanding these revenue figures can help you assess the viability of this franchise model in your market.

Breakeven Icon

How Long Does it Take to Break Even with a Sculpture Hospitality Franchise?

Franchisees can expect to reach breakeven within approximately 18 months of operation. This timeline is critical for potential investors to consider, as it reflects the speed at which they can recoup their initial investment and start generating profit. Having a clear understanding of the breakeven period can help in strategic planning and financial forecasting.

Sculpture Hospitality 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 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

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

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

8%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

3%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

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

i Initial Investment:

$45,500 - $64,500
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$45,500 - $49,500
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,758,408
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,429,000
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,347,720
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$1,347,720
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

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

i Category:

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

i Leadership:

Vanessa De Caria
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

505 Consumers Road, Suite 601 Toronto, Ontario, Canada M2J 4V8
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2017
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

SHH Group, LLC

Sculpture Hospitality 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

197
The number of locations owned by independent franchisees.

Franchised Units i

183
The number of locations owned and run by the franchisor.

Corporate Units i

14
Units 2020 2021 2022
Total Units 238 214 197
Net Change YoY -24 -17
Franchised Units 227 203 183
Net Change YoY -24 -20
Corporate Units 11 11 14
Net Change YoY 0 3
Investment About

Investment Overview

The Sculpture Hospitality franchise offers a compelling investment opportunity with a low initial investment ranging from $45,500 to $64,500. The franchise fee is set at $25,000, along with ongoing royalty and marketing fees of 8% and 3%, respectively. Prospective franchisees should be prepared to have cash reserves between $45,500 and $49,500, and a net worth requirement between $250,000 and $500,000 to ensure adequate financial backing for their venture.

Potential About

Revenue Potential

Sculpture Hospitality franchises have demonstrated strong revenue potential, with an average annual revenue per unit of approximately $1,758,408. The median annual revenue stands at $1,429,000, showcasing the brand's ability to generate substantial income. Even at the lower end, units have achieved revenues of $1,347,720, indicating a solid business model that can support franchisee profitability.

Metrics About

Breakeven and Payback Period

Franchisees can expect to break even within approximately 18 months of operation. This relatively quick breakeven time is attractive for new investors, as it allows for faster recovery of initial investments. The investment payback period aligns with the breakeven timeline, providing a clear path to financial stability.

Fees About

Franchise Growth

Sculpture Hospitality has experienced fluctuations in the number of franchised units over the years, with 227 units in 2020, 203 in 2021, and 183 in 2022. Despite the decrease in units, the franchise maintains a robust presence in the market, indicating resilience and potential for future growth. Corporate-owned units have also increased from 11 in 2021 to 14 in 2022, reflecting the brand's commitment to expanding its footprint.

Breakeven About

Financial Performance

The average annual revenue for Sculpture Hospitality franchises is reported at $3,516,816, with a gross profit margin of 91.45%. However, the average operating expenses are notably high, totaling approximately $554,456.51 annually. This indicates that while revenue potential is strong, careful management of expenses is crucial for achieving profitability and positive EBITDA, which currently shows a negative figure of $(178,882).

Units About

Operational Insights

Franchisees should be aware of the various operating expenses that contribute to overall costs. Key expenses include payroll and benefits averaging $321,705.26, administrative and selling expenses at $141,713.80, and professional fees totaling $38,618.96. Understanding these costs is essential for effective budgeting and financial planning, ensuring that franchisees can manage their operations efficiently while maximizing profitability.

Frequently Asked Questions

The initial investment for a Sculpture Hospitality franchise ranges from $45,500 to $64,500, which includes a franchise fee of $25,000.