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TruBlue Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a TruBlue Franchise?
To start a TruBlue franchise, you will need to prepare for an initial investment ranging from $70,050 to $96,400. This includes a franchise fee of $49,900. Additionally, you should be aware of ongoing costs, including a 6% royalty fee on gross sales and a 2% marketing fee. A net worth of $200,000 to $500,000 is also required, ensuring you have the financial stability to support your new venture.
What Are the Revenue Potential and Financial Performance Metrics for TruBlue?
TruBlue franchises have shown promising revenue potential, with an average annual revenue per unit of $319,810 and a median of $266,992. Some units have reported annual revenues as low as $63,135 and as high as $1,081,967. The breakeven point for new franchisees is approximately 14 months, with an investment payback period of around 18 months, making it an attractive option for those seeking a profitable business model.
How Many TruBlue Franchise Units Are Currently Operating?
TruBlue has experienced steady growth in its franchise units, increasing from 46 units in 2021 to 71 units in 2022, and reaching 84 units in 2023. This growth indicates a rising interest in the brand and its services, providing new franchisees with a supportive network and potential for collaboration within the franchise community.
What Are the Key Operating Expenses for a TruBlue Franchise?
Operating expenses for a TruBlue franchise can vary, but key costs include advertising and marketing expenses averaging $432,365 annually. Other expenses such as bank and payroll fees, insurance, and rent contribute to the overall operating budget. Understanding these costs is essential for effective financial planning and ensuring the profitability of your franchise.
TruBlue 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:
TruBlue 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 | 46 | 71 | 84 |
| Net Change YoY | 25 | 13 | |
| Franchised Units | 46 | 71 | 84 |
| Net Change YoY | 25 | 13 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The TruBlue franchise requires an initial investment ranging from $70,050 to $96,400. This includes a franchise fee of $49,900, which grants you access to the brand and its operational support. Potential franchisees should be prepared for ongoing costs, including a 6% royalty fee and a 2% marketing fee based on gross sales.
Financial Performance
TruBlue franchises show promising financial performance, with an average annual revenue per unit of approximately $319,810. The median annual revenue is reported at $266,992, while revenues can vary significantly, with the lowest at $63,135 and the highest reaching $1,081,967. This diverse revenue potential highlights the opportunity for profitability within the franchise model.
Breakeven and Payback
Franchisees can expect to reach breakeven within about 14 months of operation. The investment payback period is estimated at 18 months, making TruBlue a relatively quick return on investment compared to other franchise opportunities. This timeline is crucial for aspiring franchisees to consider when evaluating financial viability.
Franchise Growth
TruBlue has experienced consistent growth in its franchised units, increasing from 46 units in 2021 to 84 units in 2023. This upward trend in franchised locations indicates a strong demand for their services and a solid business model, making it an attractive option for potential investors looking to enter a growing market.
Required Financials
To qualify for a TruBlue franchise, prospective owners must demonstrate a net worth between $200,000 and $500,000. Additionally, having cash readily available within the initial investment range is essential for covering startup costs and ensuring a smooth launch of the business.
Ongoing Support
TruBlue provides comprehensive support to its franchisees, including training, marketing assistance, and operational guidance. This support is designed to help new franchise owners navigate the challenges of starting and running a business, ensuring they have the resources needed to succeed in the competitive home services market.
Frequently Asked Questions
The initial investment for a TruBlue franchise ranges from $70,050 to $96,400, which includes the franchise fee of $49,900.