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Slim Chickens Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Slim Chickens Franchise?
To open a Slim Chickens franchise, you will need to prepare for an initial investment ranging between $1,522,900 and $4,439,000. This investment includes a franchise fee of $15,000, along with ongoing royalty fees of 5% and a marketing fee of 2%. It’s essential to ensure you have sufficient cash reserves, as the required net worth ranges from $500,000 to $1,500,000.
What are the Average Revenues and Financial Metrics for Slim Chickens?
On average, a Slim Chickens franchise generates annual revenues of approximately $2,411,918. The median revenue stands at $2,263,285, with the lowest reported revenue being $693,170 and the highest reaching $5,379,894. The breakeven period is around 12 months, and franchisees can expect to recoup their investment within about 22 months, making it a potentially lucrative opportunity for aspiring franchise owners.
What are the Annual Operating Expenses for a Slim Chickens Franchise?
Running a Slim Chickens franchise involves various operating expenses, with total annual costs averaging around $21,885,922. Key expense categories include payroll and related expenses, which are significant at approximately $7,129,941, and marketing services costing around $752,982. Understanding these costs is crucial for franchisees to effectively manage their financial performance and ensure profitability.
How is the Slim Chickens Franchise Growing?
Slim Chickens has experienced impressive growth in recent years, expanding from 77 franchised units in 2021 to 135 in 2023. The total number of units has increased from 88 to 145 during the same period. This growth indicates a strong demand for the brand and suggests that entering the Slim Chickens franchise system could be a timely opportunity for entrepreneurs looking to invest in the booming fast-casual dining sector.
Slim Chickens 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:
Slim Chickens 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 | 88 | 113 | 145 |
| Net Change YoY | 25 | 32 | |
| Franchised Units | 77 | 104 | 135 |
| Net Change YoY | 27 | 31 | |
| Corporate Units | 11 | 9 | 10 |
| Net Change YoY | -2 | 1 |
Initial Investment
The Slim Chickens franchise requires an initial investment ranging from $1,522,900 to $4,439,000. This investment encompasses various startup costs, including equipment, real estate, and initial stock. Prospective franchisees should be prepared for these financial commitments to ensure a successful launch.
Franchise Fees
To become a Slim Chickens franchisee, an initial franchise fee of $15,000 is required. Additionally, franchisees must pay a royalty fee of 5% of gross sales and a marketing fee of 2%. These fees contribute to ongoing support and brand development, helping franchisees to thrive in a competitive market.
Financial Performance
On average, Slim Chickens units generate annual revenues of approximately $2,411,918, with a median revenue of $2,263,285. Franchisees can expect a range of annual revenues, from as low as $693,170 to as high as $5,379,894, reflecting the potential for profitability based on location and management.
Breakeven and Return
Franchisees can anticipate a breakeven period of around 12 months, making it a relatively quick path to profitability. The investment payback period is estimated at 22 months, allowing franchise owners to recoup their initial investment within a reasonable timeframe.
Growth Trajectory
Slim Chickens has shown consistent growth, expanding its franchised units from 77 in 2021 to 135 in 2023. This upward trend indicates a strong market demand and the brand's successful strategy in attracting new franchisees, making it an appealing opportunity for investors looking to enter the fast-casual dining sector.
Corporate Structure
Slim Chickens operates under a corporate structure that includes both franchised and corporate-owned units. As of 2023, there are 135 franchised locations and 10 corporate units, showcasing a balanced approach to expansion and support for franchisees through shared resources and brand strength.
Frequently Asked Questions
The initial investment for a Slim Chickens franchise ranges from $1,522,900 to $4,439,000. This includes various costs such as the franchise fee, equipment, and other startup expenses.