|
1-800-Radiator & A/C Franchise ProfileAutomotive Franchises > Auto Parts |
What Are the Initial Investment Requirements for a 1-800-Radiator & A/C Franchise?
To open a 1-800-Radiator & A/C franchise, you should be prepared for a significant initial investment ranging from $457,500 to $5,279,000. This includes a franchise fee of $45,000. Additionally, you will need to demonstrate liquid cash of $50,000 to $150,000 and a net worth between $250,000 and $5,000,000 to qualify for franchise ownership. Understanding these financial commitments is crucial for aspiring franchisees.
What Are the Ongoing Fees and Financial Metrics for Franchisees?
Franchisees of 1-800-Radiator & A/C are subject to an 8% royalty fee and a 2% marketing fee based on their gross revenue. On average, franchise units generate annual revenues of approximately $2,295,161, with a gross profit margin of 49.8%. Understanding these metrics will help franchisees manage their finances effectively and gauge the potential profitability of their investment.
How Long Does It Take to Break Even as a Franchisee?
The average breakeven time for a 1-800-Radiator & A/C franchise is around 14 months. This relatively quick recovery period is an attractive feature for potential investors. Additionally, the investment payback period is approximately 24 months, allowing franchisees to plan their financial future with a clearer timeline for return on investment.
What Is the Growth Trend for 1-800-Radiator & A/C Franchise Units?
The growth trend for 1-800-Radiator & A/C has been steady, with the number of franchised units increasing from 191 in 2021 to 194 in 2023. This indicates a positive trajectory for the brand and suggests that franchisees are finding success in their operations. As the franchise network expands, new franchisees may benefit from increased brand recognition and support from a growing community.
1-800-Radiator & A/C 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:
1-800-Radiator & A/C 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 | 192 | 194 | 195 |
| Net Change YoY | 2 | 1 | |
| Franchised Units | 191 | 193 | 194 |
| Net Change YoY | 2 | 1 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The initial investment to open a 1-800-Radiator & A/C franchise ranges from $457,500 to $5,279,000. This includes a franchise fee of $45,000. Potential franchisees should also prepare for a cash requirement between $50,000 and $150,000, alongside a net worth requirement of $250,000 to $5,000,000.
Financial Performance
On average, a 1-800-Radiator & A/C unit generates annual revenue of approximately $2,295,161. The financial metrics indicate a gross profit margin of 49.8%, with operating expenses accounting for 39.6% of revenue. This positions franchisees to potentially earn an EBITDA of around $233,869 annually.
Franchise Growth
The 1-800-Radiator & A/C franchise has shown steady growth, with franchised units increasing from 191 in 2021 to 194 in 2023. This consistent growth reflects the brand's expanding market presence and the ongoing demand for automotive repair services.
Royalty and Marketing Fees
Franchisees are required to pay an 8% royalty fee based on gross sales, along with a 2% marketing fee. These fees contribute to the brand's national advertising initiatives and ongoing support, helping franchisees maintain competitiveness in the market.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 14 months of operation. The investment payback period is estimated at 24 months, making this franchise an attractive option for those looking for a relatively quick return on investment.
Support and Training
1-800-Radiator & A/C provides comprehensive training and ongoing support to franchisees. This includes operational training, marketing assistance, and access to proprietary systems, ensuring that franchisees are well-equipped to run their businesses effectively and efficiently.
Frequently Asked Questions
The initial investment for a 1-800-Radiator & A/C franchise ranges from $457,500 to $5,279,000, which includes the initial franchise fee of $45,000.