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Aqua-Tots Swim Schools Franchise ProfileChildren’s Franchises > Children's Fitness |
What are the Initial Investment Requirements for an Aqua-Tots Swim Schools Franchise?
To open an Aqua-Tots Swim Schools franchise, you will need an initial investment ranging from $984,095 to $2,014,314. This includes a franchise fee of $50,000. Additionally, you must have a net worth of $500,000 to $1,000,000 and sufficient cash on hand to cover the total investment amount. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the venture.
What Ongoing Fees Should Aqua-Tots Franchisees Expect?
Aqua-Tots Swim Schools franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall operational costs and are essential for maintaining brand presence and support. It's important for potential franchisees to factor these fees into their financial planning to ensure long-term profitability.
What is the Average Revenue Potential for Aqua-Tots Swim Schools?
The average annual revenue per unit for Aqua-Tots Swim Schools is approximately $1,200,000, with a median revenue of $131,694. Franchisees can expect revenues to range from $100,000 to $1,600,000 annually. This revenue potential highlights the business's capacity for profitability, making it an attractive option for those interested in the education and child services sector.
How Quickly Can Aqua-Tots Franchisees Expect to Break Even?
Aqua-Tots Swim Schools franchisees typically experience a breakeven time of around 12 months, with an investment payback period of approximately 24 months. This swift return on investment can be appealing for entrepreneurs looking to establish a successful business in a relatively short timeframe. Understanding these timelines can help franchisees set realistic financial goals and expectations.
Aqua-Tots Swim Schools 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:
Aqua-Tots Swim Schools Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 91 | 100 | 103 |
| Net Change YoY | 9 | 3 | |
| Franchised Units | 90 | 99 | 102 |
| Net Change YoY | 9 | 3 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Aqua-Tots Swim Schools franchise offers a range of investment options, with initial costs varying from $984,095 to $2,014,314. This includes a franchise fee of $50,000 and ongoing royalties of 6% of gross sales, along with a marketing fee of 2%. Potential franchisees should have a net worth between $500,000 and $1,000,000, ensuring they are financially equipped to support their new venture.
Revenue Potential
Aqua-Tots Swim Schools has demonstrated robust revenue potential, with average annual revenue per unit reported at $1,216,694. The median annual revenue stands at $1,200,000, while the lowest recorded revenue is $100,000 and the highest reaches $1,600,000. This diverse revenue range highlights the scalability of the franchise model, appealing to various investment levels.
Breakeven and Payback Period
Franchisees can expect a breakeven period of approximately 12 months, which is relatively quick compared to many other franchise opportunities. The investment payback period is around 24 months, allowing owners to recover their initial investment efficiently and begin generating profit within a manageable timeframe.
Franchise Growth
Aqua-Tots Swim Schools has shown steady growth in its franchise network, increasing from 90 franchised units in 2020 to 102 units in 2022. This consistent expansion indicates a strong market demand for swim education and the franchise's effective operational model, making it an attractive option for prospective franchisees.
Corporate Structure
The Aqua-Tots Swim Schools franchise is supported by a single corporate unit, which has remained stable since 2020. This structure allows for streamlined operations and centralized support for franchisees, fostering a collaborative environment that enhances overall brand performance and franchisee success.
Operational Costs
Franchisees should anticipate annual operating expenses ranging from approximately $84,340 to $144,728. Key expenses include rent, advertising, and various operational fees. Understanding these costs is crucial for franchisees to effectively manage their finances and ensure profitability in their Aqua-Tots Swim Schools locations.
Frequently Asked Questions
The initial investment for an Aqua-Tots Swim Schools franchise ranges from $984,095 to $2,014,314. This includes the franchise fee of $50,000 and other associated startup costs.