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The Patch Boys Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for The Patch Boys Franchise?
To open a The Patch Boys franchise, you'll need an initial investment ranging from $59,193 to $90,165. This includes a franchise fee of $29,500. It's important to have cash on hand that meets this range, as well as a net worth of at least $100,000. Understanding these financial commitments will help you assess whether this opportunity aligns with your financial situation.
What Are the Ongoing Fees Associated with The Patch Boys Franchise?
Franchisees of The Patch Boys should be prepared for ongoing fees that include an 8% royalty fee on gross sales and a 2% marketing fee. These fees contribute to the brand's overall marketing efforts and support systems, helping to drive business and maintain brand presence. Being aware of these costs is crucial for long-term financial planning and profitability.
What Is the Average Revenue Potential for The Patch Boys Franchise?
The Patch Boys franchise has shown promising revenue potential, with average annual revenue per unit reported at $295,805. The median annual revenue is $241,765, while some units have achieved as high as $1,067,474. This data indicates that with the right management and market conditions, franchisees can experience significant financial success.
How Long Does It Take to Break Even with The Patch Boys Franchise?
Franchisees can expect to reach breakeven within approximately 24 months of operation. Additionally, the investment payback period is estimated at around 36 months. Understanding these timelines is essential for planning your financial strategy and gauging the potential return on your investment in The Patch Boys franchise.
The Patch Boys 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 Patch Boys 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 | 92 | 100 | 192 |
| Net Change YoY | 8 | 92 | |
| Franchised Units | 92 | 100 | 192 |
| Net Change YoY | 8 | 92 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Patch Boys franchise offers a low initial investment ranging from $59,193 to $90,165, making it an accessible option for aspiring entrepreneurs. The franchise fee is set at $29,500, which is part of the overall investment required to start a franchise unit.
Financial Performance
Franchisees can expect an average annual revenue of $295,805 per unit, with a median revenue of $241,765. The revenue range is quite broad, with some units generating as low as $25,300 and others achieving up to $1,067,474 annually. This variance highlights the potential for profitability within the franchise.
Royalty and Marketing Fees
The Patch Boys franchise requires a royalty fee of 8% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall operational costs but also support brand marketing and development efforts.
Breakeven and Payback
Franchisees typically reach breakeven within 24 months of operation, with an investment payback period of approximately 36 months. This timeline is crucial for potential franchisees to understand, as it indicates when they can start seeing returns on their investment.
Franchise Growth
The Patch Boys has shown significant growth in its franchise units, expanding from 92 in 2020 to 192 by 2022. This growth trajectory indicates a strong demand for their services and a solid franchise model that appeals to new investors.
Corporate Structure
The Patch Boys operates as a franchise model with no corporate-owned units reported as of 2022. This structure allows for a focus on supporting franchisees while expanding the brand through franchised locations across various markets.
Frequently Asked Questions
The initial investment for a The Patch Boys franchise ranges from $59,193 to $90,165, which includes a franchise fee of $29,500.