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ShelfGenie Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a ShelfGenie Franchise?
To become a ShelfGenie franchisee, you will need to consider an initial investment that ranges from $45,300 to $137,100. This includes a franchise fee of $69,500, which is part of the total startup costs. Additionally, you should have cash available between $83,050 and $137,100, with a net worth requirement of $250,000 to $500,000. It's essential to prepare for ongoing expenses, including a royalty fee of 7% and a marketing fee of 8% on your revenue.
What Is the Average Financial Performance of a ShelfGenie Franchise?
ShelfGenie franchises have shown promising financial performance, with an average annual revenue per unit reported at $1,000,000. The gross profit margin stands at 75%, indicating strong profitability potential. However, operating expenses, which account for 60% of revenue, can significantly impact net earnings. Franchisees should be aware that the highest annual revenue per unit can reach up to $4,712,660, while the lowest reported is $62,157, highlighting the variability in performance across different locations.
How Long Does It Typically Take to Break Even with a ShelfGenie Franchise?
Franchisees can expect to reach breakeven within approximately 18 months of operation. This relatively quick return timeline is an attractive feature for many investors. Following breakeven, the investment payback period is projected at around 21 months, allowing franchisees to start seeing profits in a reasonable timeframe. Proper management of expenses and effective marketing strategies will be crucial in achieving these milestones.
What Is the Growth Trend for ShelfGenie Franchises?
ShelfGenie has experienced steady growth in its franchise units over the past few years. In 2021, there were 178 franchised units, which increased to 227 in 2022 and reached 240 in 2023. This upward trend indicates a growing interest in the brand and its services. Additionally, the number of corporate units has remained stable, suggesting a balanced approach to expansion while maintaining operational consistency across franchised and corporate locations.
ShelfGenie 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.
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ShelfGenie Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 194 | 240 | 256 |
| Net Change YoY | 46 | 16 | |
| Franchised Units | 178 | 227 | 240 |
| Net Change YoY | 49 | 13 | |
| Corporate Units | 16 | 13 | 16 |
| Net Change YoY | -3 | 3 |
Company Background
ShelfGenie is a leading franchise in the home organization and storage solutions industry, specializing in custom shelving and storage systems for kitchens, bathrooms, and closets. Founded in 2000, ShelfGenie has grown to become a trusted name, offering innovative solutions that enhance space efficiency and improve home aesthetics. With a focus on quality craftsmanship and exceptional customer service, ShelfGenie helps homeowners maximize their storage potential while creating a more organized living environment.
Franchise Opportunity
Investing in a ShelfGenie franchise presents a unique opportunity for aspiring entrepreneurs looking to enter the booming home improvement market. With an initial investment range of $45,300 to $137,100, franchisees can tap into a growing demand for home organization solutions. The brand’s established reputation and comprehensive training programs empower franchisees to build a successful business while benefiting from ongoing support and marketing resources.
Corporate Structure
ShelfGenie operates as a subsidiary of the Home Franchise Concepts, LLC, which is one of the largest franchise organizations in the home services sector. The company’s headquarters are located in Richmond, Virginia, where it develops franchisee training programs, marketing strategies, and operational support systems. ShelfGenie’s corporate structure prioritizes collaboration and innovation, ensuring that franchisees have access to the tools they need to thrive in their local markets.
Royalties
Franchisees are required to pay a royalty fee of 7% of gross sales, along with an 8% marketing fee. These fees support the brand’s national marketing initiatives and provide franchisees with ongoing operational and strategic support. By contributing to a collective marketing fund, franchisees can benefit from enhanced brand visibility and customer acquisition efforts, ultimately driving sales and profitability.
Company Mission
ShelfGenie’s mission is to transform homes through innovative storage solutions that enhance organization and efficiency. The company is dedicated to improving customers’ quality of life by providing personalized design consultations and high-quality, custom products. By prioritizing customer satisfaction and fostering a culture of excellence, ShelfGenie aims to be the go-to choice for homeowners seeking to optimize their living spaces.
Financial Performance
ShelfGenie franchises have demonstrated strong financial performance, with an average annual revenue per unit reaching $1,000,000. The franchise model boasts a breakeven time of approximately 18 months and an investment payback period of around 21 months. With a net worth requirement of $250,000 to $500,000, franchisees can expect a solid return on investment, backed by a growing market for home improvement and organization services.
Frequently Asked Questions
The initial investment for a ShelfGenie franchise ranges from $45,300 to $137,100, which includes the franchise fee of $69,500 and other startup expenses.