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BELOCAL Franchise ProfileBusiness Services Franchises > Consulting |
What is the Initial Investment for a BELOCAL Franchise?
To open a BELOCAL franchise, the initial investment ranges from $2,010 to $12,395. This includes a franchise fee of $570. Potential franchisees need to ensure they have cash available within this range to cover startup costs and initial operating expenses. With a relatively low entry cost compared to many franchise opportunities, BELOCAL can be an attractive option for aspiring entrepreneurs looking to start their own business.
What Are the Ongoing Fees Associated with a BELOCAL Franchise?
Franchisees of BELOCAL are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 15%. These fees are essential for maintaining brand standards and supporting marketing efforts that drive customer engagement. It’s important for potential franchisees to factor these ongoing fees into their financial planning to understand the overall profitability of their investment.
What Are the Revenue Expectations for a BELOCAL Franchise?
BELOCAL franchises can expect an average annual revenue of approximately $112,178 per unit, with the highest reported revenue reaching $245,703. This performance indicates a strong potential for profitability, especially when considering the breakeven time of just 12 months and an investment payback period of 8 months. Franchisees should analyze these figures to set realistic financial goals for their business.
How Has BELOCAL Grown Over Recent Years?
BELOCAL has shown consistent growth in its franchised units, increasing from 111 in 2021 to 154 in 2023. This upward trend reflects the brand's expanding market presence and appeal among franchisees. The company also operates a small number of corporate units, which allows for direct oversight and operational refinement. This growth trajectory suggests a promising opportunity for new franchisees considering joining the BELOCAL network.
BELOCAL 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:
BELOCAL 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 | 112 | 142 | 155 |
| Net Change YoY | 30 | 13 | |
| Franchised Units | 111 | 139 | 154 |
| Net Change YoY | 28 | 15 | |
| Corporate Units | 1 | 3 | 1 |
| Net Change YoY | 2 | -2 |
Investment Overview
The BELOCAL franchise presents a compelling investment opportunity with a low initial investment range of $2,010 to $12,395. The franchise fee is set at $570, and franchisees can expect a royalty fee of 6% on gross sales. Additionally, a marketing fee of 15% helps support the brand's promotional efforts, ensuring franchisees benefit from a strong marketing presence.
Revenue Potential
Franchisees can anticipate an average annual revenue of $112,178 per unit, with a median figure matching this average. The revenue range varies significantly, with the lowest annual revenue reported at $287 and the highest reaching $245,703. This wide range highlights the potential for profitability depending on location and management effectiveness.
Franchise Growth
The BELOCAL franchise has shown steady growth in the number of franchised units, increasing from 111 units in 2021 to 154 units in 2023. This growth indicates a strong market demand and the brand's ability to attract new franchisees. The network expansion reflects confidence in the BELOCAL business model and its operational success.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation, making it a relatively quick return on investment. The investment payback period is estimated at just 8 months, allowing franchisees to recover their initial investment promptly, which is an attractive feature for potential investors.
Operational Insights
While specific operational costs are not fully detailed, franchisees should prepare for various expenses, including marketing, insurance, and other administrative costs. The total estimated initial investment encompasses all necessary funds to start the business, ranging from $2,010 to $12,395, ensuring franchisees are financially equipped for their first few months of operation.
Corporate Structure
BELOCAL operates under a structured corporate framework, with a growing number of corporate-owned units alongside its franchised locations. In 2021, there was 1 corporate unit, which increased to 3 in 2022, before returning to 1 in 2023. This structure allows for centralized support and resource allocation, benefiting franchisees through shared best practices and operational efficiencies.
Frequently Asked Questions
The initial investment for a BELOCAL franchise ranges from $2,010 to $12,395, which includes the franchise fee and other startup costs.