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YESCO Franchise ProfileAdvertising & Marketing Franchises > Signage |
What Are the Initial Investment Requirements for a YESCO Franchise?
To open a YESCO franchise, you will need to prepare for a significant initial investment. The total cost ranges from $65,000 to $432,200, which includes a franchise fee of $50,000. Additionally, you should have liquid cash available between $65,000 and $432,200 and a net worth of $500,000 to $1,000,000. It’s essential to assess your financial readiness before proceeding with this opportunity.
What Are the Ongoing Fees Associated with a YESCO Franchise?
YESCO franchisees are required to pay ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 3%. These fees contribute to the overall support and branding efforts that YESCO provides to its franchisees. Understanding these costs is crucial for maintaining profitability and ensuring the long-term success of your franchise unit.
What Are the Revenue Potential and Performance Metrics for a YESCO Franchise?
The revenue potential for a YESCO franchise is promising, with an average annual revenue per unit of $966,002. The median annual revenue stands at $786,986, while the lowest revenue recorded is $95,371, and the highest reaches an impressive $4,047,406. With a breakeven time of just 12 months and an investment payback period of the same duration, YESCO offers a compelling financial opportunity for franchisees.
How Many YESCO Franchise Units Are Currently Operating?
As of 2023, YESCO operates a total of 99 units, consisting of 57 franchised locations and 42 corporate-owned units. This slight decline from previous years indicates a stable yet competitive environment. Understanding the number of units and their distribution can help you gauge the franchise's market presence and potential growth opportunities in your area.
YESCO 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:
YESCO 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 | 102 | 101 | 99 |
| Net Change YoY | -1 | -2 | |
| Franchised Units | 60 | 59 | 57 |
| Net Change YoY | -1 | -2 | |
| Corporate Units | 42 | 42 | 42 |
| Net Change YoY | 0 | 0 |
Initial Investment
The YESCO franchise presents a range of initial investment requirements, with costs ranging from $65,000 to $432,200. This includes a franchise fee of $50,000, making it an accessible option for aspiring entrepreneurs. Potential franchisees should consider the total cash required, which falls between $65,000 and $432,200, depending on the chosen location and operational scale.
Financial Performance
Franchisees can expect an average annual revenue of approximately $966,002 per unit, with a median revenue of $786,986. The revenue potential varies significantly, with the lowest reported annual revenue at $95,371 and the highest reaching $4,047,406. This financial performance illustrates the diverse earning potential within the YESCO franchise model.
Royalty and Marketing Fees
YESCO charges a royalty fee of 6% on gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting local advertising initiatives, ensuring franchisees benefit from collective marketing efforts while contributing to the overall brand presence.
Breakeven and Payback Period
Franchisees can anticipate a breakeven time of about 12 months, which aligns with the investment payback period of the same duration. This relatively quick return on investment allows new franchise owners to regain their initial capital swiftly, making YESCO an attractive opportunity for those looking for rapid financial recovery.
Franchise Growth
The YESCO franchise has shown a steady presence in the market, with 60 franchised units in 2021, decreasing to 57 in 2023. This slight decline in franchised units indicates a stable but cautious approach to expansion, reflecting the brand's focus on maintaining quality and operational efficiency rather than aggressive growth.
Corporate Structure
YESCO operates with a mix of franchised and corporate-owned units. As of 2023, there are 42 corporate units, which provide a stable foundation for the brand. This structure allows for effective support and oversight of franchisees, ensuring that operational standards and brand integrity are upheld across all locations.
Frequently Asked Questions
The initial investment for a YESCO franchise ranges from $65,000 to $432,200, which includes the initial franchise fee of $50,000.