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Beef Jerky Outlet Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Costs to Open a Beef Jerky Outlet Franchise?
To open a Beef Jerky Outlet franchise, you should expect an initial investment ranging from $194,750 to $401,900. This includes a franchise fee of $49,900. Additionally, you'll need to have cash available within this range and a net worth between $300,000 and $500,000. It's important to factor in ongoing costs such as a 6% royalty fee and a 2% marketing fee, which will impact your overall financial planning.
What Is the Revenue Potential for a Beef Jerky Outlet Franchise?
The average annual revenue for a Beef Jerky Outlet unit is approximately $427,586, with a median revenue of $424,774. However, revenues can vary significantly, with the lowest annual revenue reported at $197,215 and the highest reaching $1,146,356. This revenue potential indicates a strong opportunity for profitability, especially for franchisees who effectively manage their operations and marketing strategies.
What Are the Financial Metrics to Consider?
When evaluating the financial performance of a Beef Jerky Outlet franchise, consider key metrics such as a gross profit margin of 45%, with average operating expenses accounting for 31% of revenue. This results in an EBITDA of 13%, highlighting the business's ability to generate earnings before interest, taxes, depreciation, and amortization. Understanding these metrics can help you assess your potential return on investment and operational efficiency.
How Quickly Can You Expect to Break Even?
Franchisees of Beef Jerky Outlet can anticipate breaking even within approximately 12 months of operation. With an investment payback period of about 54 months, this timeline suggests a relatively quick path to profitability compared to many other franchises. Being aware of these timelines can help you plan your financial strategy and set realistic expectations for your franchise journey.
Beef Jerky Outlet 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:
Beef Jerky Outlet Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 105 | 101 | 95 |
| Net Change YoY | -4 | -6 | |
| Franchised Units | 99 | 95 | 89 |
| Net Change YoY | -4 | -6 | |
| Corporate Units | 6 | 6 | 6 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Beef Jerky Outlet franchise requires an initial investment ranging from $194,750 to $401,900. This investment includes a franchise fee of $49,900, which grants you the rights to operate under the Beef Jerky Outlet brand. Potential franchisees should also consider additional costs such as equipment, inventory, and working capital to ensure a smooth launch.
Financial Performance
On average, Beef Jerky Outlet units generate annual revenues of approximately $427,586, with a median revenue of $424,774. The financial performance can vary significantly, with the lowest annual revenue recorded at $197,215 and the highest reaching $1,146,356. This range highlights the potential for profitability within the franchise model.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall operational costs but also provide access to brand support and marketing initiatives that can drive customer traffic and sales growth.
Breakeven and Payback Period
The average breakeven time for a Beef Jerky Outlet franchise is approximately 12 months, allowing franchisees to start recouping their initial investment relatively quickly. The investment payback period is estimated at 54 months, providing a clear timeline for financial planning and expectations.
Corporate Structure
Beef Jerky Outlet operates under a franchise model with a growing number of franchised units. As of 2021, there were 89 franchised locations and 6 corporate-owned units. This structure supports franchisees with established operational guidelines while maintaining brand consistency across locations.
Average Running Expenses
Franchisees should anticipate annual running expenses ranging from $79,000 to $281,000. Key expenses include rent (between $30,000 and $120,000), utilities, insurance, and salaries. Understanding these costs is crucial for effective budgeting and financial management in the operation of a Beef Jerky Outlet franchise.
Frequently Asked Questions
The initial investment to open a Beef Jerky Outlet franchise ranges from $194,750 to $401,900, which includes the franchise fee of $49,900.