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Asurion Tech Repair & Solutions Franchise ProfileComputer & Internet Franchises > Computer Repair |
What Are the Initial Investment Costs for an Asurion Tech Repair & Solutions Franchise?
Starting an Asurion Tech Repair & Solutions franchise requires an initial investment ranging from $118,350 to $369,555. This includes a franchise fee of $40,000, along with various startup costs such as equipment, leasehold improvements, and initial inventory. It's essential to prepare for ongoing expenses, including a 7% royalty fee and a 2% marketing fee, as these will impact your overall financial performance.
What Are the Financial Performance Metrics for Asurion Tech Repair & Solutions?
Asurion Tech Repair & Solutions franchises generate impressive revenues, with an average annual revenue of $726,069 per unit. The median annual revenue stands at $478,563, while some units report revenues as high as $2,387,024. Understanding these metrics can help potential franchisees assess the profitability and viability of their investment, with a breakeven time and investment payback period both estimated at 18 months.
What Are the Required Financial Qualifications to Become an Asurion Franchisee?
To qualify for an Asurion Tech Repair & Solutions franchise, prospective franchisees must have a net worth between $500,000 and $1,000,000. Additionally, they should have cash available in the range of $118,350 to $369,555 to cover the initial investment and operational expenses. Meeting these financial requirements is crucial for ensuring the sustainability of the franchise in the competitive tech repair market.
What Are the Operational Insights for Running an Asurion Franchise?
Operating an Asurion Tech Repair & Solutions franchise involves managing various expenses, including legal and accounting fees, insurance, and store rent. Average annual expenses can range widely, with total startup costs reflecting the initial investment range. Franchisees benefit from a well-established business model and ongoing support, which can help streamline operations and enhance profitability in a rapidly evolving industry.
Asurion Tech Repair & Solutions 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:
Asurion Tech Repair & Solutions 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 | 552 | 696 | 674 |
| Net Change YoY | 144 | -22 | |
| Franchised Units | 432 | 335 | 337 |
| Net Change YoY | -97 | 2 | |
| Corporate Units | 120 | 361 | 337 |
| Net Change YoY | 241 | -24 |
Initial Investment
The Asurion Tech Repair & Solutions franchise requires a low initial investment ranging from $118,350 to $369,555. This investment includes a franchise fee of $40,000, making it accessible for aspiring entrepreneurs looking to enter the tech repair market.
Financial Performance
Franchisees can expect an average annual revenue of $726,069, with a median revenue of $478,563. The highest annual revenue reported by a unit is $2,387,024, showcasing the potential for significant earnings in this franchise model.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These fees contribute to the ongoing support and brand visibility that Asurion provides to its franchise network.
Breakeven and Payback Period
The average breakeven time for an Asurion franchise is approximately 18 months, aligning with the investment payback period. This relatively quick return on investment makes it an attractive option for franchisees seeking to recoup their initial costs swiftly.
Franchise Growth
As of 2022, Asurion Tech Repair & Solutions has a total of 674 units, with 337 being franchised and 337 corporate-owned. The franchise has shown a consistent presence in the market, highlighting its stability and growth potential.
Operational Expenses
Average annual expenses for an Asurion franchise include costs for legal and accounting services, business licenses, insurance, and store rent. These operational costs can range significantly, but they are essential for maintaining compliance and ensuring smooth business operations.
Frequently Asked Questions
The initial investment to open an Asurion Tech Repair & Solutions franchise ranges from $118,350 to $369,555, which includes the franchise fee and other startup costs.