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Skyhawks Franchise ProfileChildren’s Franchises > Children's Fitness |
What is the Initial Investment for a Skyhawks Franchise?
The initial investment for a Skyhawks franchise ranges from $37,800 to $165,750. This includes a franchise fee of $42,500 and additional startup costs. Potential franchisees should also have cash available between $37,800 and $89,250, along with a net worth requirement of $100,000 to $150,000. Understanding these financial commitments is crucial when considering this franchise opportunity.
What are the Ongoing Fees Associated with a Skyhawks Franchise?
Franchisees of Skyhawks are required to pay a royalty fee of 9% on their gross revenue, along with a marketing fee of 3%. These ongoing fees are essential for maintaining brand consistency and supporting local marketing efforts. It's important for potential franchisees to factor these costs into their financial projections to ensure sustainable profitability.
How Profitable is a Skyhawks Franchise?
On average, a Skyhawks franchise unit generates annual revenues of approximately $406,185, with a median revenue of $292,042. The breakeven time is estimated at 12 months, and franchisees can expect to see a return on their investment within the same timeframe. These figures highlight the potential for profitability, but individual results may vary based on location and management practices.
What Support Does Skyhawks Provide to Franchisees?
Skyhawks offers comprehensive support to its franchisees, including initial training and ongoing operational assistance. This support helps franchisees navigate the complexities of running a sports program. Additionally, franchisees benefit from a network of peers and access to marketing resources, which can enhance their chances of success in the competitive youth sports industry.
Skyhawks 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:
Skyhawks 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 | 80 | 92 | 103 |
| Net Change YoY | 12 | 11 | |
| Franchised Units | 56 | 60 | 67 |
| Net Change YoY | 4 | 7 | |
| Corporate Units | 24 | 32 | 36 |
| Net Change YoY | 8 | 4 |
Investment Overview
The Skyhawks franchise offers a low initial investment ranging from $37,800 to $165,750, making it accessible for aspiring entrepreneurs. The franchise fee is set at $42,500, with ongoing royalty fees of 9% and a marketing fee of 3%. To ensure franchisees are financially prepared, a cash requirement of $37,800 to $89,250 and a net worth requirement of $100,000 to $150,000 are established.
Revenue Potential
Franchisees can expect significant revenue potential, with average annual revenue per unit reported at $406,185. The median annual revenue stands at $292,042, while the range shows variability with the lowest annual revenue at $9,221 and the highest at $1,852,364. This diverse revenue landscape highlights the opportunity for franchisees to achieve substantial financial success.
Operational Efficiency
Skyhawks franchises are designed for efficiency, with a breakeven time of just 12 months and an investment payback period also estimated at 12 months. This quick return on investment reflects effective business operations and strong customer demand, making it an attractive option for new franchisees.
Franchise Growth
The Skyhawks franchise has shown consistent growth, increasing from 56 franchised units in 2021 to 67 in 2023. Corporate units have also expanded, from 24 in 2021 to 36 in 2023. This upward trend indicates a robust business model and a growing brand presence in the market.
Financial Insights
The average cost of goods sold (COGS) for a Skyhawks franchise is approximately $50,000, representing 12.3% of revenue. With a gross profit margin of 87.7%, franchisees can expect strong profitability. Operating expenses average around $170,000, accounting for 41.8% of revenue, allowing for a healthy EBITDA of $186,185, or 45.8% of total revenue.
Franchise Support
Skyhawks provides comprehensive support to its franchisees, including training, marketing assistance, and operational guidance. The initial training program is valued at $1,500, ensuring that new franchisees are well-equipped to manage their units effectively. This commitment to franchisee success is a cornerstone of the Skyhawks brand, fostering a collaborative environment for growth and profitability.
Frequently Asked Questions
The initial investment for a Skyhawks franchise ranges from $37,800 to $165,750, which includes the franchise fee of $42,500 and other startup costs.