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Totally Nutz Franchise ProfileVending & ATM Franchises > Snack Vending |
What Are the Initial Investment Requirements for a Totally Nutz Franchise?
To open a Totally Nutz franchise, you need to prepare for an initial investment ranging from $66,372 to $2,059,900. This includes a franchise fee of $27,500. Additionally, you should have cash on hand between $66,372 and $229,000, along with a net worth requirement of $150,000 to $300,000. Understanding these financial commitments is crucial before diving into the franchise ownership journey.
What Are the Ongoing Fees for a Totally Nutz Franchise?
As a Totally Nutz franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% of your gross sales and a marketing fee of 5%. These fees contribute to the overall support and brand recognition that can help drive sales and profitability. It's essential to factor these costs into your financial planning to ensure sustainable operations.
What Is the Average Financial Performance of a Totally Nutz Franchise?
The average annual revenue for a Totally Nutz franchise unit is approximately $185,124, with a median revenue of $185,124 as well. The lowest reported annual revenue stands at $97,786, while the highest reaches $246,601. With a breakeven time of around 12 months and an investment payback period of 22 months, this franchise can offer a viable return on investment for dedicated operators.
How Many Units Does Totally Nutz Have?
As of 2023, Totally Nutz operates a total of 78 units, with 59 being franchised and 19 corporate-owned. The growth trajectory shows an increase in franchised units from 51 in 2021 to 59 in 2023, indicating a solid expansion strategy. This growth reflects the brand's appeal and potential for new franchisees looking to join a thriving network.
Totally Nutz 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:
Totally Nutz 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 | 68 | 73 | 78 |
| Net Change YoY | 5 | 5 | |
| Franchised Units | 51 | 56 | 59 |
| Net Change YoY | 5 | 3 | |
| Corporate Units | 17 | 17 | 19 |
| Net Change YoY | 0 | 2 |
Investment Overview
The Totally Nutz franchise offers a low initial investment starting at $66,372, with a high end reaching up to $2,059,900. The initial franchise fee is $27,500, and franchisees can expect a royalty fee of 6% on gross sales, alongside a marketing fee of 5%. To qualify, potential franchisees should have a cash requirement of $66,372 to $229,000 and a net worth of $150,000 to $300,000.
Revenue Potential
Franchisees of Totally Nutz can anticipate an average annual revenue of $185,124 per unit, with median revenues at $185,124 and a range from $97,786 to $246,601. These figures indicate a strong revenue potential, making it an appealing opportunity for aspiring entrepreneurs looking to enter the franchise market.
Operational Insights
The average operating expenses for a Totally Nutz unit total $132,272 annually, which is approximately 71.49% of total revenue. Key expenses include general and administrative costs of $79,573 and professional fees of $44,282. Understanding these costs is crucial for franchisees to manage their operations effectively and maintain profitability.
Breakeven and Payback
Franchisees can expect to reach their breakeven point within 12 months of operation, with an investment payback period estimated at 22 months. This relatively quick return on investment can be an attractive feature for those considering the franchise, as it suggests a faster path to profitability.
Franchise Growth
The Totally Nutz franchise has shown consistent growth, increasing from 51 franchised units in 2021 to 59 in 2023. This upward trend reflects the brand's expanding market presence and the increasing interest from potential franchisees, indicating a healthy and growing franchise system.
Company Background
Totally Nutz specializes in gourmet nut products, offering a unique and appealing product line that includes flavored nuts and snacks. Founded with a commitment to quality and customer satisfaction, the brand has developed a loyal customer base and a strong reputation in the snack food industry, paving the way for franchise opportunities across various markets.
Frequently Asked Questions
The initial investment for a Totally Nutz franchise ranges from $66,372 to $2,059,900, depending on various factors like location and setup costs.