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WSI Franchise ProfileComputer & Internet Franchises > Internet Marketing |
What is the Initial Investment for a WSI Franchise?
To open a WSI franchise, the initial investment ranges from $77,400 to $106,500. This includes a franchise fee of $64,700. Aspiring franchisees should also be prepared for ongoing costs, including a 10% royalty fee on revenue and a 2% marketing fee. It's essential to have cash reserves between $77,400 and $90,500, along with a net worth of $100,000 to $250,000 to meet the financial requirements for ownership.
What Are the Revenue Expectations for a WSI Franchise?
WSI franchises have the potential for significant revenue generation. The average annual revenue per unit is approximately $2,969,690, with a median revenue of $1,000,000. However, revenues can vary widely, with the lowest reported at $60,000 and the highest reaching $10,271,700. Understanding these figures can help prospective franchisees gauge the potential return on investment and assess the financial viability of the franchise.
What Is the Breakeven Timeline for a WSI Franchise?
Franchisees can expect to break even within approximately 12 months of operation. This quick breakeven period can be appealing for new investors looking to recoup their initial investment swiftly. Additionally, the investment payback period is estimated at 29 months, allowing franchisees to plan their financial strategies effectively as they work toward profitability.
How Many WSI Franchise Units Are Currently Operating?
As of 2023, WSI has a total of 148 franchised units, down from 178 in 2021. There are no corporate-owned units, indicating a purely franchised model. Understanding the number of operating units can provide insights into the brand's market presence and stability, which are crucial factors for prospective franchisees when evaluating the franchise opportunity.
WSI 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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WSI 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 | 178 | 160 | 148 |
| Net Change YoY | -18 | -12 | |
| Franchised Units | 178 | 160 | 148 |
| Net Change YoY | -18 | -12 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The WSI franchise offers an attractive investment opportunity with a low initial investment ranging from $77,400 to $106,500. The franchise fee is set at $64,700, with ongoing royalty fees of 10% and a marketing fee of 2%. Aspiring franchisees should have a cash requirement between $77,400 and $90,500, as well as a net worth ranging from $100,000 to $250,000 to qualify for ownership.
Revenue Potential
Franchisees can expect substantial revenue potential, with average annual revenue per unit reaching approximately $2,969,690. The median annual revenue stands at $1,000,000, while the range of annual revenue varies widely from $60,000 to $10,271,700. This highlights the potential for significant financial success within the WSI franchise system.
Breakeven and Payback
The WSI franchise boasts a breakeven time of just 12 months, making it a relatively quick path to profitability. Franchisees can anticipate an investment payback period of approximately 29 months, allowing for a clear understanding of the financial timeline associated with ownership.
Franchise Growth
The WSI franchise has demonstrated a steady presence in the market, with 178 franchised units in 2021, 160 in 2022, and 148 in 2023. This gradual decrease in the number of units indicates a focus on maintaining quality and optimizing existing operations rather than aggressive expansion.
Financial Performance
The average annual revenue across units is reported at $2,405,040, with a gross profit margin of 90.68%. Operating expenses account for 86.82% of revenue, resulting in an EBITDA of $93,333, which represents 3.88% of total revenue. These metrics provide a comprehensive view of the financial health and profitability potential of the franchise.
Operational Expenses
Franchisees should be prepared for various operational expenses, which total approximately $2,103,000 to $2,055,000 annually. Key expenses include management and licensing fees, professional fees, and marketing costs. Understanding these expenses is crucial for effective financial planning and ensuring sustainable operations within the franchise.
Frequently Asked Questions
The initial investment for a WSI franchise ranges from $77,400 to $106,500, which includes the franchise fee of $64,700.