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The Entrepreneur's Source Franchise ProfileConsultant & Business Brokers > Franchise Consulting |
Initial Investment Overview for The Entrepreneur's Source
To open a franchise with The Entrepreneur's Source, you will need to prepare for an initial investment ranging from $114,350 to $125,950. This includes a franchise fee of $75,000. It's essential to ensure you have the necessary cash on hand, as the total cash required falls within this range. Understanding these costs upfront can help you plan your financial strategy effectively.
Ongoing Fees and Financial Requirements
Franchisees of The Entrepreneur's Source are subject to ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 2%. Additionally, potential franchisees must demonstrate a net worth between $500,000 and $1,000,000. These financial commitments are crucial for maintaining the brand's operational standards and marketing efforts, ensuring the franchise's long-term success.
Revenue Potential and Breakeven Timeline
The Entrepreneur's Source boasts an average annual revenue of $117,964 per unit, with a median revenue of $363,942. The franchise has shown a strong performance, with the lowest annual revenue recorded at $1,958 and the highest at $768,000. Notably, franchisees can expect to reach breakeven within approximately 24 months, making it a potentially lucrative investment for those ready to commit.
Growth and Expansion of Franchised Units
The Entrepreneur's Source has demonstrated consistent growth in its franchised units, increasing from 119 in 2020 to 148 in 2022. This upward trend indicates a healthy demand for the franchise model and suggests that franchisees are benefiting from the brand's reputation and operational support. As the network expands, new franchisees can tap into a growing community of support and shared resources.
The Entrepreneur's Source 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:
The Entrepreneur's Source 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 | 134 | 148 |
| Net Change YoY | 15 | 14 | |
| Franchised Units | 119 | 134 | 148 |
| Net Change YoY | 15 | 14 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Entrepreneur's Source requires a low initial investment ranging from $114,350 to $125,950. This includes a franchise fee of $75,000, which is a crucial part of the startup costs. Potential franchisees should also consider additional expenses such as training and marketing when planning their budget.
Financial Performance
The average annual revenue per unit is reported at $117,964, with a median revenue of $363,942. However, revenues can vary widely, with the lowest reported at $1,958 and the highest at $768,000. This range highlights the potential for significant earnings, depending on location and management.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 5% on gross sales, in addition to a marketing fee of 2%. These ongoing fees contribute to the overall operational costs but are essential for brand support and marketing initiatives that drive customer traffic.
Breakeven Timeline
Franchisees can expect a breakeven period of approximately 24 months. This timeframe is crucial for budgeting and financial planning, as it indicates when a franchisee can start seeing a return on their initial investment.
Growth and Expansion
The Entrepreneur's Source has shown steady growth in franchised units, increasing from 119 in 2020 to 148 in 2022. This growth trend indicates a strong demand for the franchise and presents opportunities for new franchisees to join a thriving network.
Financial Requirements
Prospective franchisees must meet specific financial criteria, including a net worth requirement between $500,000 and $1,000,000. This requirement ensures that franchisees have the financial stability to support their business and navigate the initial startup phase.
Frequently Asked Questions
The initial investment for a The Entrepreneur's Source franchise ranges from $114,350 to $125,950, which includes the franchise fee and other startup costs.