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Uptown Cheapskate Franchise ProfileRetail Franchises > Clothing Stores |
What is the Initial Investment for an Uptown Cheapskate Franchise?
The initial investment to open an Uptown Cheapskate franchise ranges from $345,959 to $575,334. This includes a franchise fee of $25,000, which grants you access to the brand's support and resources. Additionally, prospective franchisees should be prepared for ongoing costs, including a 5% royalty fee and a 1% marketing fee, which are essential for maintaining brand presence and operational support.
What are the Financial Performance Metrics for Uptown Cheapskate?
Uptown Cheapskate franchises have shown promising financial performance, with an average annual revenue of approximately $134,929 per unit. The median revenue stands at $475,000, highlighting the potential for profitability. Units can generate between $70,000 and $1,102,157 annually. With a breakeven time of just 12 months and an investment payback period of around 24 months, this franchise model offers a solid return on investment for dedicated operators.
What are the Required Financial Qualifications for Franchisees?
To qualify for an Uptown Cheapskate franchise, you need a net worth between $500,000 and $1,000,000. Additionally, having cash readily available within the range of the initial investment is crucial. This financial foundation ensures that franchisees can cover startup costs and sustain operations during the early stages of business development, which is vital for long-term success.
How Many Uptown Cheapskate Units Are Currently Operating?
As of 2023, there are 99 franchised Uptown Cheapskate units, reflecting steady growth from 79 units in 2021. The brand has also expanded its corporate presence, increasing from 6 corporate units in 2021 to 14 in 2023. This upward trend indicates a robust interest in the franchise model and a growing market presence, making it an attractive opportunity for potential franchisees looking to join a thriving retail chain.
Uptown Cheapskate 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.
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Uptown Cheapskate Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 85 | 96 | 113 |
| Net Change YoY | 11 | 17 | |
| Franchised Units | 79 | 83 | 99 |
| Net Change YoY | 4 | 16 | |
| Corporate Units | 6 | 13 | 14 |
| Net Change YoY | 7 | 1 |
Initial Investment
The Uptown Cheapskate franchise requires an initial investment ranging from $345,959 to $575,334. This includes a franchise fee of $25,000. Potential franchisees should be prepared to cover various startup costs, including equipment, inventory, and working capital to ensure a smooth launch.
Financial Performance
On average, each Uptown Cheapskate franchise unit generates annual revenue of approximately $134,929, with a median revenue of $475,000. The revenue range varies widely, with the lowest reported at $70,000 and the highest at $1,102,157, indicating potential for significant earnings based on location and management.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand strength and marketing efforts that support franchisee success, ensuring that Uptown Cheapskate remains competitive in the retail market.
Breakeven and Payback Period
The average breakeven time for an Uptown Cheapskate franchise is estimated at 12 months, with an investment payback period of about 24 months. This relatively quick return on investment can be appealing for entrepreneurs looking to achieve profitability within a short timeframe.
Franchise Growth
Uptown Cheapskate has demonstrated consistent growth, with franchised units increasing from 79 in 2021 to 99 in 2023. This upward trend reflects the brand's expanding market presence and the increasing demand for affordable, trendy second-hand clothing.
Corporate Structure
The franchise operates alongside corporate-owned locations, which have also seen growth from 6 units in 2021 to 14 units in 2023. This dual structure allows Uptown Cheapskate to maintain control over brand standards and operational efficiency while supporting franchisee development.
Frequently Asked Questions
The initial investment for an Uptown Cheapskate franchise ranges from $345,959 to $575,334, which includes the initial franchise fee of $25,000.