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Art Recovery Technologies Franchise ProfileChildren’s Franchises > Art & Craft Programs |
What is the Initial Investment for an Art Recovery Technologies Franchise?
To open an Art Recovery Technologies franchise, the initial investment ranges from $138,700 to $253,000. This includes a franchise fee of $25,000, which is part of your startup costs. It's essential to prepare for ongoing expenses, including a 7% royalty fee and a 2% marketing fee, which will contribute to your operational budget. Ensuring you have the required cash on hand is crucial, as the minimum cash requirement falls between $138,700 and $253,000.
What Are the Financial Performance Expectations for Art Recovery Technologies Franchisees?
Art Recovery Technologies franchisees can expect an average annual revenue of approximately $390,668 per unit, with a median revenue of $358,816. However, revenues can vary significantly, with the lowest annual revenue reported at $56,154 and the highest reaching $1,270,040. Understanding these figures can help potential franchisees gauge the financial viability of their investment and set realistic revenue expectations.
What is the Breakeven Timeline for an Art Recovery Technologies Franchise?
Franchisees can anticipate a breakeven time of about 16 months, which is relatively quick compared to other franchise models. This means that, on average, you could start recouping your initial investment within a year and a half of operation. Additionally, the investment payback period is estimated at 32 months, providing a clearer picture of when you might see a return on your investment.
How Many Units Does Art Recovery Technologies Currently Operate?
As of 2019, Art Recovery Technologies has experienced steady growth, operating a total of 58 units—57 franchised and 1 corporate unit. The franchise has expanded from 25 units in 2017 to 57 units by 2019, indicating a strong demand for its services and a successful franchise model. This growth trend may be appealing for prospective franchisees looking to join a brand with a proven track record.
Art Recovery Technologies 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:
Art Recovery Technologies Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 26 | 49 | 58 |
| Net Change YoY | 23 | 9 | |
| Franchised Units | 25 | 48 | 57 |
| Net Change YoY | 23 | 9 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Art Recovery Technologies franchise offers a low to moderate initial investment, ranging from $138,700 to $253,000. The initial franchise fee is set at $25,000, with ongoing royalty and marketing fees of 7% and 2% respectively. Prospective franchisees should be prepared for a cash requirement within the same investment range and a net worth requirement between $25,000 and $75,000 to secure their franchise.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $390,668 per unit, with a median revenue of $358,816. Revenue can vary significantly, with the lowest reported annual revenue at $56,154 and the highest reaching $1,270,040. This diverse revenue potential highlights the opportunity for franchisees to thrive in this business model.
Financial Performance
The average cost of goods sold (COGS) accounts for 86% of revenue, resulting in a gross profit margin of 14%. Operating expenses average around $73,464, which is about 18.8% of total revenue. However, the average EBITDA reflects a loss of $18,796, indicating that careful management of costs and operational efficiency is crucial for profitability.
Breakeven and Payback
Franchisees can anticipate a breakeven period of approximately 16 months, which is relatively favorable in the franchise industry. The investment payback period is projected at 32 months, allowing franchisees to recoup their initial investments within a reasonable timeframe, assuming they achieve average revenue figures.
Growth Trends
Art Recovery Technologies has shown steady growth, with franchised units increasing from 25 in 2017 to 57 in 2019. This growth trend suggests a robust market demand for their services and an expanding franchise network. With a total of 58 units reported by 2019, the franchise is poised for further expansion in the coming years.
Corporate Structure
The franchise operates under a well-defined corporate structure, with a focus on supporting franchisees through comprehensive training and ongoing assistance. The company has maintained a consistent presence with one corporate unit since 2017, which underscores its commitment to franchisee success and operational stability within the network.
Frequently Asked Questions
The initial investment for an Art Recovery Technologies franchise ranges from $138,700 to $253,000, which includes the franchise fee of $25,000 and other startup costs.