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Watermill Express Franchise ProfileBusiness Opportunities > Vending Machines |
What Are the Initial Investment Requirements for a Watermill Express Franchise?
To start a Watermill Express franchise, you should be prepared for an initial investment ranging from $598,700 to $820,800. This includes a franchise fee of $75,000. Additionally, you will need to maintain a cash reserve of the same amount, along with a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the venture.
What Are the Ongoing Fees for a Watermill Express Franchise?
Franchisees of Watermill Express are required to pay a royalty fee of 5% on their gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand presence and operational support. It’s vital for potential franchise owners to factor these costs into their financial planning to maintain profitability over time.
What Is the Average Revenue Potential for a Watermill Express Franchise?
On average, a Watermill Express franchise unit generates annual revenue of approximately $858,381. This figure provides a solid benchmark for prospective franchisees, highlighting the potential for strong earnings. However, it's important to note that revenues can vary significantly, with the highest reported annual revenue reaching $1,400,000, while the lowest sits at $75,055. Understanding these figures can help in setting realistic financial expectations.
How Quickly Can You Expect to Break Even with a Watermill Express Franchise?
Watermill Express franchisees can anticipate a breakeven period of about 12 months. This relatively quick return on investment is appealing for many entrepreneurs. With an investment payback period of the same duration, franchisees can start seeing profits sooner than in some other franchise models, making it an attractive option for those looking to enter the market.
Watermill Express 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:
Watermill Express Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 1268 | 1263 | 1260 |
| Net Change YoY | -5 | -3 | |
| Franchised Units | 314 | 315 | 314 |
| Net Change YoY | 1 | -1 | |
| Corporate Units | 954 | 948 | 946 |
| Net Change YoY | -6 | -2 |
Investment Overview
The Watermill Express franchise presents a compelling investment opportunity with an initial investment ranging from $598,700 to $820,800. This includes a franchise fee of $75,000 and ongoing royalty fees of 5% of gross sales, along with a marketing fee of 2%. Potential franchisees should be prepared with a cash requirement within the same range as the initial investment and a net worth requirement between $500,000 and $1,000,000.
Revenue Potential
Franchisees can expect substantial revenue potential, with average annual revenue per unit reported at $858,381. The revenue range varies significantly, with the lowest annual revenue recorded at $75,055 and the highest reaching $1,400,000. This broad range highlights the importance of location, management, and operational efficiency in maximizing profitability.
Breakeven and Payback
Watermill Express franchises have a favorable breakeven time and investment payback period, both estimated at just 12 months. This swift return on investment can be a significant draw for aspiring franchisees, allowing them to recoup their initial investment quickly and begin generating profit in the first year of operation.
Franchise Growth
The franchise system has shown stability in its growth, with 314 franchised units in 2019 and 2021, and a slight increase to 315 in 2020. Over the same period, corporate units have remained relatively consistent, indicating a solid foundation and ongoing support for franchisees within the Watermill Express network.
Operating Expenses
Average operating expenses for Watermill Express franchises are approximately $106,898 annually, which constitutes about 10.96% of revenue. These expenses include management services, accounting, bank charges, and legal fees. Understanding these costs is crucial for franchisees to effectively manage their financial performance and maximize profitability.
Financial Performance
The financial performance of Watermill Express franchises is notable, with an EBITDA of $868,006, accounting for 89.04% of total revenue. This high percentage reflects the brand's efficient operational model and the potential for franchisees to achieve significant earnings through effective management and customer engagement.
Frequently Asked Questions
The initial investment for a Watermill Express franchise ranges from $598,700 to $820,800, which includes the franchise fee and other startup costs.