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Surf City Squeeze Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Surf City Squeeze Franchise?
To open a Surf City Squeeze franchise, you should be prepared for a range of initial investments. The total investment can vary from $67,410 to $368,000, which includes a franchise fee of $30,000. Additionally, you will need to have cash readily available between $67,410 and $304,500 and a net worth of $150,000 to $200,000. Understanding these financial commitments is crucial for your planning and decision-making process.
What Are the Ongoing Fees for Surf City Squeeze Franchisees?
As a Surf City Squeeze franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% on your gross sales and a marketing fee of 1%. These fees are essential for maintaining brand presence and support from the franchisor. It's important to factor these into your financial projections to ensure the profitability of your franchise.
What Is the Average Revenue Potential for a Surf City Squeeze Franchise?
Surf City Squeeze franchises have shown promising revenue potential, with the average annual revenue per unit reported at $263,686. The median revenue is slightly lower at $196,671, while the highest annual revenue can reach up to $337,937. This revenue potential indicates a strong market presence, making it an attractive option for aspiring franchisees.
How Quickly Can You Expect to Break Even with a Surf City Squeeze Franchise?
Franchisees can expect to break even within approximately 12 months of operation. This quick payback period highlights the business model's efficiency and the demand for Surf City Squeeze's offerings. With effective management and marketing strategies, you may find yourself on a path to profitability sooner than anticipated.
Surf City Squeeze 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:
Surf City Squeeze 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 | 73 | 70 | 65 |
| Net Change YoY | -3 | -5 | |
| Franchised Units | 72 | 69 | 64 |
| Net Change YoY | -3 | -5 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
Surf City Squeeze offers a range of initial investment costs, from $67,410 to $368,000. The franchise fee stands at $30,000, with ongoing royalty fees of 6% and a marketing fee of 1%. Potential franchisees should prepare for cash requirements between $67,410 and $304,500, alongside a net worth requirement of $150,000 to $200,000.
Revenue Potential
The average annual revenue for a Surf City Squeeze unit is approximately $263,686, with a median revenue of $196,671. Units can see a wide range of performance, with the lowest annual revenue recorded at $67,015 and the highest reaching $337,937. This variance highlights the potential for strong financial performance with the right management and location.
Profitability Metrics
Surf City Squeeze maintains a gross profit margin of 83.33%, indicating robust profitability. After accounting for operating expenses, the EBITDA stands at 18.63%, reflecting healthy earnings before interest, taxes, depreciation, and amortization. This metric underscores the franchise's potential for strong financial returns.
Breakeven Timeline
Franchisees can expect to reach breakeven within approximately 12 months of operation. This swift timeline is appealing for new investors looking to recoup their initial investment quickly and start generating profits in a relatively short period.
Franchise Growth
The Surf City Squeeze franchise has experienced a slight decline in the number of franchised units, with 72 in 2021, decreasing to 64 by 2023. This trend may suggest market saturation or a strategic shift in focus, which potential franchisees should consider when evaluating the opportunity.
Corporate Structure
Surf City Squeeze operates with a corporate structure that includes one company-owned unit, consistent across the last three years. This model allows for a blend of corporate oversight and franchisee independence, providing support while encouraging entrepreneurial spirit among franchise owners.
Frequently Asked Questions
The initial investment for a Surf City Squeeze franchise ranges from $67,410 to $368,000, which includes the franchise fee and other startup costs.