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Sterling Optical Franchise ProfileRetail Franchises > Specialty Retail |
To open a Sterling Optical franchise, the initial investment can range significantly, from as low as $32,840 to as high as $2,093,750. This investment includes a franchise fee of $30,000, along with other startup costs. It's essential to have cash reserves between $40,000 and $90,000 and a net worth of $300,000 to $500,000 to qualify for ownership. Understanding these costs upfront can help you prepare for the financial commitment involved in launching your franchise.
Franchisees of Sterling Optical should be aware of ongoing fees that will affect their overall profitability. An 8% royalty fee is charged on gross sales, along with a 6% marketing fee. These fees contribute to the brand's overall marketing efforts and operational support, helping franchisees stay competitive in the optical industry. Planning for these recurring expenses is crucial for maintaining a healthy cash flow.
Sterling Optical franchises can generate substantial revenue, with average annual revenues reported at approximately $6,345,114. The median annual revenue is around $500,000, while some units may achieve revenues as high as $1,000,000. Understanding these revenue metrics can assist potential franchisees in evaluating the potential return on investment and making informed decisions about entering the franchise system.
Franchisees can expect to reach their breakeven point within about 12 months of operation. This relatively quick breakeven timeline is appealing for many investors, as it indicates that the business can start generating profit within the first year. Additionally, the investment payback period is estimated at around 40 months, providing a clearer picture of when you might start seeing returns on your initial investment.
Sterling Optical 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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Sterling Optical Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2020 | 2021 | 2022 |
---|---|---|---|
Total Units | 119 | 116 | 109 |
Net Change YoY | -3 | -7 | |
Franchised Units | 100 | 96 | 92 |
Net Change YoY | -4 | -4 | |
Corporate Units | 19 | 20 | 17 |
Net Change YoY | +1 | -3 |
Sterling Optical is a well-established optical retail chain known for providing a range of eyewear solutions, including prescription glasses, contact lenses, and sunglasses. With a focus on customer service and quality products, Sterling Optical has built a strong reputation in the optical industry, offering franchise opportunities for aspiring entrepreneurs looking to enter the retail sector.
The initial investment to open a Sterling Optical franchise ranges from $32,840 to $2,093,750, depending on various factors such as location and store size. The franchise fee is set at $30,000, with ongoing royalty fees of 8% and a marketing fee of 6%. Prospective franchisees should have a cash requirement of $40,000 to $90,000 and a net worth of $300,000 to $500,000 to qualify for franchise ownership.
Sterling Optical franchises generate significant revenue, with average annual revenue per unit reported at approximately $69,000 and a median annual revenue of $500,000. Units have shown a range of revenue, with the lowest at $100,000 and the highest reaching $1,000,000. The breakeven time for new units is estimated at 12 months, while the investment payback period averages around 40 months, indicating a promising return on investment for franchisees.
Franchisees should be prepared for various operational expenses, which total around $127,860 per year. Key costs include rent ($39,960), utilities ($6,000), insurance ($6,500), and marketing ($9,000). Additionally, salaries for management and administrative roles can reach $60,000, highlighting the importance of effective cost management to maintain profitability within the franchise.
Sterling Optical has experienced a steady presence in the market, with a total of 109 units in operation across the years 2020 to 2022. The number of franchised units has gradually declined from 100 in 2020 to 92 in 2022, while corporate units have also seen slight fluctuations. This trend suggests a need for strategic focus on franchisee support and expansion to enhance overall growth.
Sterling Optical is dedicated to providing high-quality eyewear and exceptional customer service, aiming to create a welcoming environment for all customers. The brand's mission emphasizes accessibility to affordable eyewear solutions while fostering a community-oriented approach. Franchisees are encouraged to uphold these values, ensuring that each customer receives personalized attention and care, which is crucial for building lasting relationships and driving repeat business.
Frequently Asked Questions
The initial investment for a Sterling Optical franchise ranges from $32,840 to $2,093,750, which includes the initial franchise fee of $30,000 among other startup costs.