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Take 5 Franchise ProfileAutomotive Franchises > Oil Change |
Initial Investment Overview for Take 5 Franchise
The Take 5 franchise presents a range of investment requirements, with a low initial investment of approximately $232,794 and a high of up to $2,033,733. The franchise fee is set at $45,000, which is a standard entry cost for many franchise opportunities. Prospective franchisees should be prepared for ongoing fees, including a 7% royalty fee and a 5% marketing fee. Additionally, a cash reserve of $500,000 to $1,000,000 is recommended to ensure adequate liquidity for operational needs.
Revenue Potential for Take 5 Franchise
The Take 5 franchise demonstrates strong revenue potential, with an average annual revenue per unit reaching $1,419,693. The median annual revenue stands at $1,161,512, while units may generate as low as $255,888 or as high as $3,331,375 annually. This variance highlights the importance of location and management effectiveness. With a breakeven time of just 12 months, franchisees can expect a relatively quick return on their investment.
Operational Insights for Take 5 Franchise
Understanding the operational expenses is crucial for Take 5 franchisees. Average operating expenses total around $632,745 annually, which includes payroll costs of $285,175, marketing fund contributions of $70,985, and occupancy expenses of $91,656. With an EBITDA of $394,793, representing 27.8% of revenue, franchisees can identify key areas for cost management and profitability optimization.
Growth Trajectory of Take 5 Franchise
The Take 5 franchise has shown significant growth, increasing from 64 franchised units in 2021 to 227 in 2023. This expansion reflects a robust franchise model and increasing brand recognition. Additionally, corporate-owned units have also grown from 534 to 644 during the same period. This upward trend indicates a strong market presence and potential for future franchisee success within the Take 5 network.
Take 5 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:
Take 5 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 | 598 | 714 | 871 |
| Net Change YoY | 116 | 157 | |
| Franchised Units | 64 | 134 | 227 |
| Net Change YoY | 70 | 93 | |
| Corporate Units | 534 | 580 | 644 |
| Net Change YoY | 46 | 64 |
Investment Overview
The Take 5 franchise presents a compelling investment opportunity with an initial investment range from $232,794 to $2,033,733, including a franchise fee of $45,000. Prospective franchisees should be prepared with liquid assets between $500,000 and $1,000,000, along with a net worth of the same amount to meet the financial requirements for ownership.
Revenue Potential
Take 5 franchises have demonstrated strong revenue potential, with average annual revenues per unit reaching $1,419,693. The median revenue stands at $1,161,512, while units can generate anywhere from $255,888 to an impressive $3,331,375 annually. This range highlights the scalability and profitability of the franchise model.
Operational Performance
Franchisees can expect a breakeven time of approximately 12 months, indicating a relatively quick return on investment. The investment payback period is estimated at 30 months, allowing franchisees to recoup their initial investment and begin realizing profits within a reasonable timeframe.
Franchise Growth
Take 5 has experienced significant growth in its franchised units, expanding from 64 units in 2021 to 227 in 2023. This upward trend reflects the brand's increasing popularity and market presence, providing new franchisees with a robust support network and established operational practices.
Financial Metrics
The financial metrics for Take 5 franchises reveal a gross profit margin of 72.4%, with operating expenses accounting for 30.4% of revenue. This results in an EBITDA of 27.8%, showcasing the franchise's ability to generate substantial profit while maintaining manageable operating costs.
Ongoing Fees
Franchisees are subject to a royalty fee of 7% on gross sales, along with a marketing fee of 5%. These ongoing fees contribute to the overall brand visibility and support provided by Take 5, ensuring franchisees benefit from collective marketing efforts and brand strength while managing their operational expenses.
Frequently Asked Questions
The initial investment for a Take 5 franchise ranges from $232,794 to $2,033,733. This includes the franchise fee of $45,000 and other startup costs.