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Stroll Franchise ProfileAdvertising & Marketing Franchises > Direct Mail |
Investment Overview for Stroll Franchise
The Stroll franchise offers a low initial investment range of $2,010 to $12,395, making it accessible for aspiring entrepreneurs. The initial franchise fee is $570, with ongoing royalty and marketing fees set at 3% and 5%, respectively. To qualify, potential franchisees should have a net worth between $250,000 and $500,000. This financial structure allows for a manageable entry point into the franchise world while providing a clear path for growth.
Revenue Potential of Stroll Franchise
Stroll franchisees can expect an average annual revenue of $147,765, with a median revenue of $142,705. The revenue range varies significantly, with the lowest annual revenue reported at $694 and the highest at $415,198. This broad spectrum highlights the potential profitability of the franchise, depending on location and management. With an average EBITDA of $77,094, franchisees can see a healthy return on their investment.
Operational Insights for Stroll Franchise
Franchisees should anticipate operating expenses averaging $70,671, which accounts for approximately 47.8% of revenue. Key expenses include office furniture, equipment, insurance, and marketing efforts. The breakeven time is estimated at 12 months, and the investment payback period is around 16 months. Understanding these operational costs is crucial for effective financial planning and ensuring sustainable growth.
Franchise Growth Trends for Stroll
The Stroll franchise has experienced a decline in total units, from 745 in 2021 to 552 in 2023, with franchised units decreasing from 733 to 516 during the same period. Conversely, corporate units have increased from 12 to 36. This shift indicates a strategic focus on company-owned locations, which may impact franchisee support and market presence. Potential franchisees should consider these trends when evaluating the long-term viability of the Stroll franchise opportunity.
Stroll 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:
Stroll 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 | 745 | 660 | 552 |
| Net Change YoY | -85 | -108 | |
| Franchised Units | 733 | 627 | 516 |
| Net Change YoY | -106 | -111 | |
| Corporate Units | 12 | 33 | 36 |
| Net Change YoY | 21 | 3 |
Initial Investment
The Stroll franchise offers a low initial investment range, with costs between $2,010 and $12,395. This includes a franchise fee of $570, making it accessible for aspiring entrepreneurs looking to enter the franchise market without significant financial barriers.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 3% on gross sales, along with a marketing fee of 5%. These fees contribute to the brand’s overall marketing efforts and support franchisee operations, ensuring that all units benefit from a cohesive brand presence.
Financial Performance
The average annual revenue per Stroll unit is $147,765, with a median of $142,705. This indicates a strong revenue potential, with the highest reported annual revenue reaching $415,198. These figures provide prospective franchisees with insights into the financial viability of the business model.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 12 months of operation, with an investment payback period of around 16 months. This timeline highlights the franchise's potential for profitability and helps investors gauge their return on investment.
Franchise Growth
The Stroll franchise has seen a decline in the number of franchised units from 733 in 2021 to 516 in 2023. While this trend may raise questions about growth, it also presents opportunities for existing franchisees to capture a larger market share in their areas.
Corporate Presence
Stroll operates both franchised and corporate units, with corporate units increasing from 12 in 2021 to 36 in 2023. This growth in corporate locations indicates the brand's commitment to expanding its footprint and enhancing operational support for franchisees, fostering a stronger network overall.
Frequently Asked Questions
The initial investment for a Stroll franchise ranges from $2,010 to $12,395, which includes the franchise fee and other startup costs.