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Description
Investment Icon

What Are the Initial Investment Requirements for a Zerorez Franchise?

To open a Zerorez franchise, you will need to prepare for a significant initial investment. The costs range from $262,614 to $619,066, which includes a franchise fee of $30,000. Additionally, you should have cash readily available between $90,000 and $240,000, and a net worth requirement ranging from $300,000 to $999,999. Understanding these financial commitments is crucial before embarking on your franchise journey.

Fees Icon

What Are the Ongoing Fees for Zerorez Franchisees?

As a Zerorez franchisee, you will be responsible for ongoing royalty and marketing fees. The royalty fee is set at 6% of your unit's revenue, while a marketing fee of 5% is also required. These fees are essential for maintaining brand presence and supporting marketing initiatives, which can help drive customer traffic to your franchise location.

Revenue Icon

What Is the Average Revenue Potential for a Zerorez Franchise?

Zerorez franchises demonstrate strong revenue potential, with an average annual revenue of $1,498,348 per unit. The median annual revenue stands at $928,637, showcasing the lucrative nature of this business model. However, it's important to note that revenue can vary significantly, with the lowest annual revenue recorded at $14,102 and the highest at $13,806,236. This variance highlights the importance of location and operational efficiency in achieving optimal financial performance.

Breakeven Icon

How Long Does It Take to Break Even with a Zerorez Franchise?

Investing in a Zerorez franchise can lead to a breakeven point within approximately 16 months. With an investment payback period of around 24 months, this timeline suggests that franchisees can expect to recover their initial investment relatively quickly compared to other business models. Understanding this timeline can help you plan your financial strategy effectively as you embark on your franchise ownership journey.

Zerorez 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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $999,999
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

16 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$262,614 - $619,066
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$90,000 - $240,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,498,348
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$928,637
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$13,806,236
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$14,102
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Cleaning Franchises
Category icon A more specific division within the broader industry.

i Category:

Carpet Cleaning
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Shawn Moon
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

1809 West State Street, Building B-2, Pleasant Grove, Utah 84062
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2001
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Zerorez Franchising Systems, Inc.

Zerorez Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

74
The number of locations owned by independent franchisees.

Franchised Units i

55
The number of locations owned and run by the franchisor.

Corporate Units i

19
Units 2021 2022 2023
Total Units 70 73 74
Net Change YoY 3 1
Franchised Units 64 53 55
Net Change YoY -11 2
Corporate Units 6 20 19
Net Change YoY 14 -1
Investment About

Investment Overview

The Zerorez franchise offers a compelling investment opportunity with an initial investment range between $262,614 and $619,066. A franchise fee of $30,000 is required, alongside ongoing royalties of 6% on gross sales and a marketing fee of 5%. Franchisees should be prepared with liquid cash requirements ranging from $90,000 to $240,000 and a net worth between $300,000 and $999,999 to ensure financial stability and support for their new business.

Potential About

Revenue Potential

Zerorez franchises have demonstrated strong revenue potential, with an average annual revenue per unit of $1,498,348. The median annual revenue stands at $928,637, showcasing the brand's ability to generate significant income. However, revenue can vary widely, with the lowest annual revenue recorded at $14,102 and the highest reaching an impressive $13,806,236, reflecting the diverse performance across different markets.

Metrics About

Breakeven and Payback

Franchisees can expect a breakeven period of approximately 16 months, indicating a relatively quick return on investment. Furthermore, the investment payback period is estimated at 24 months, allowing franchisees to recoup their initial investment within a reasonable timeframe. This financial outlook is crucial for potential investors looking for sustainable growth.

Fees About

Franchise Growth

The Zerorez franchise has shown steady growth, with 64 franchised units in 2021, decreasing slightly to 53 in 2022, and rising again to 55 in 2023. The total number of units has remained stable, indicating a solid foundation for franchise expansion. The presence of 6 corporate units in 2021, which increased to 20 in 2022 before settling at 19 in 2023, demonstrates the company's commitment to both franchise and corporate growth strategies.

Breakeven About

Financial Performance

Financial metrics reveal that Zerorez franchises maintain a gross profit margin of 57.6%, with operating expenses accounting for 20.1% of revenue. The average EBITDA stands at $561,706, representing 37.5% of total revenue. These figures highlight the franchise's ability to manage costs effectively while generating substantial profits, making it an attractive option for potential franchisees.

Units About

Corporate Support

Zerorez provides robust corporate support to its franchisees, ensuring they have the necessary tools and resources for success. This includes comprehensive training programs, marketing assistance, and operational support aimed at maximizing profitability. The franchise's commitment to ongoing support helps franchisees navigate challenges and capitalize on growth opportunities in the cleaning and restoration industry.

Frequently Asked Questions

The initial investment for a Zerorez franchise ranges from $262,614 to $619,066, which includes the franchise fee and other startup costs.