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Supporting Strategies Franchise ProfileAccounting & Financial Franchises > Bookkeeping |
What Are the Initial Investment Requirements for a Supporting Strategies Franchise?
To open a Supporting Strategies franchise, you need to consider an initial investment that ranges from $74,570 to $98,190. This includes a franchise fee of $60,000. Additionally, you’ll need to have cash readily available between $10,000 and $30,000, and a net worth requirement between $250,000 and $500,000. Understanding these financial commitments is crucial when evaluating your readiness to embark on this franchise journey.
What Are the Ongoing Fees Associated with a Supporting Strategies Franchise?
Supporting Strategies requires franchisees to pay ongoing fees that include a royalty fee of 10% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing efforts that can drive customer traffic to your unit. Being aware of these ongoing costs will help you plan your financial strategy effectively.
What Is the Average Revenue Potential for a Supporting Strategies Franchise?
The average annual revenue for a Supporting Strategies franchise unit is approximately $200,000. With a median annual revenue of $300,000 and a breakeven time of just 12 months, this franchise demonstrates strong financial potential. Understanding these revenue figures can help you assess the profitability of your investment and set realistic financial goals.
What Are the Key Operational Expenses for a Supporting Strategies Franchise?
Franchisees should anticipate various operational expenses, including insurance costs ranging from $2,850 to $3,000, and legal fees between $1,000 and $3,000. The total estimated operating expenses can fall between $74,570 and $98,190, excluding real estate costs. Keeping a close eye on these expenses is vital for maintaining profitability and ensuring your franchise runs smoothly.
Supporting Strategies 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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Supporting Strategies 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 | 100 | 98 | 94 |
| Net Change YoY | -2 | -4 | |
| Franchised Units | 100 | 98 | 84 |
| Net Change YoY | -2 | -14 | |
| Corporate Units | 0 | 0 | 10 |
| Net Change YoY | 10 |
Investment Overview
Supporting Strategies offers a compelling investment opportunity with a low initial investment ranging from $74,570 to $98,190. The franchise fee is set at $60,000, with ongoing royalty fees of 10% and a marketing fee of 2%. Prospective franchisees should be prepared to have cash reserves between $10,000 and $30,000, alongside a net worth requirement of $250,000 to $500,000 to ensure financial stability and operational success.
Revenue Potential
The average annual revenue per unit for Supporting Strategies is reported at $200,000, with a median figure of $300,000. This indicates a strong potential for profitability within the franchise model. Franchisees can anticipate a breakeven time of approximately 12 months, with an investment payback period of just 9 months, making it an attractive option for those looking to enter the franchise space.
Franchise Growth
The Supporting Strategies franchise has shown a steady presence in the market, with 100 franchised units in 2021, slightly decreasing to 98 in 2022, and further down to 84 in 2023. This trend highlights the need for strategic growth initiatives as the company begins to establish corporate units, with 10 corporate locations reported in 2023, signaling a shift towards a more integrated operational model.
Operating Costs
Franchisees should anticipate a range of operating expenses, with total estimated costs between $74,570 and $98,190, excluding real estate costs. Key expenses include insurance (approximately $2,850 to $3,000), legal fees ($1,000 to $3,000), and technology costs for virtual services ranging from $600 to $1,200. Understanding these costs is critical for effective budgeting and financial planning.
Financial Performance
The average profit and loss metrics indicate a gross profit margin of 60%, with operating expenses accounting for 30% of revenue. This results in an EBITDA of around $60,000 per unit, showcasing the financial viability of the Supporting Strategies franchise. Franchisees can leverage these insights to optimize their operations and enhance profitability.
Franchise Support
Supporting Strategies prides itself on providing robust support to its franchisees, ensuring they have the tools and resources necessary for success. This includes comprehensive training programs, ongoing operational support, and marketing assistance. The franchise's commitment to its franchisees is a key factor in promoting long-term growth and sustainability within the brand.
Frequently Asked Questions
The initial investment for a Supporting Strategies franchise ranges from $74,570 to $98,190. This includes the franchise fee of $60,000, along with other startup costs.