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Bruster's Real Ice Cream Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Bruster's Real Ice Cream Franchise?
Starting a Bruster's Real Ice Cream franchise requires a significant initial investment, ranging from $318,000 to $2,236,500. This includes a franchise fee of $35,000. Prospective franchisees must also prepare for ongoing costs, such as a 5% royalty fee and a 3% marketing fee. Additionally, having liquid cash between $318,000 and $850,500 and a net worth of $500,000 to $1,000,000 is crucial to meet the financial criteria set by the franchisor.
What Are the Revenue Potential and Financial Performance Metrics?
Bruster's Real Ice Cream franchises show promising financial performance, with an average annual revenue of $634,673 per unit. The median revenue stands at $587,542, while some units report revenues as low as $89,223 and as high as $2,086,002. With a breakeven time of approximately 18 months and an investment payback period of around 20 months, franchisees can expect a relatively quick return on their investment.
What Are the Operational Expenses Involved in Running a Bruster's Franchise?
Operating a Bruster's Real Ice Cream franchise involves various expenses, with total annual costs approximating $4,972,559. Key expenses include management fees, professional fees, and bank service charges. While specific amounts for rent, utilities, and marketing are not disclosed, franchisees should budget for these costs as part of their overall operational strategy to maintain profitability and ensure smooth operations.
How Many Bruster's Real Ice Cream Units Are Currently in Operation?
As of 2021, there are 181 Bruster's Real Ice Cream units in operation, with 180 being franchised and 1 corporate-owned. The number of franchised units has seen a steady increase from 175 in both 2019 and 2020. This growth indicates a strong interest in the brand and its potential for expansion in the market, making it an attractive option for aspiring franchisees.
Bruster's Real Ice Cream 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:
Bruster's Real Ice Cream 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 | 176 | 176 | 181 |
| Net Change YoY | 0 | 5 | |
| Franchised Units | 175 | 175 | 180 |
| Net Change YoY | 0 | 5 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Bruster's Real Ice Cream is a well-established franchise known for its high-quality, handcrafted ice cream and a wide variety of flavors. Founded in 1989, Bruster's has grown to include over 180 locations across the United States. The franchise emphasizes a community-oriented approach, offering a family-friendly atmosphere where customers can enjoy premium ice cream made fresh daily.
Investment Requirements
To open a Bruster's franchise, the initial investment ranges from $318,000 to $2,236,500, which includes a franchise fee of $35,000. A cash reserve of $318,000 to $850,500 is required, along with a net worth of $500,000 to $1,000,000. This investment structure supports franchisees in establishing a successful business while ensuring they have adequate resources for operations.
Financial Performance
Bruster's franchises have shown strong financial performance, with an average annual revenue of $634,673 per unit. The median annual revenue stands at $587,542, while the highest reported revenue reaches $2,086,002. This financial potential highlights the brand's ability to generate significant sales, making it an attractive option for aspiring franchisees.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 3%. These fees contribute to the overall brand strength and marketing efforts that help drive customer traffic to each location. The structured fee system ensures that franchisees benefit from a collective marketing strategy while maintaining profitability.
Operational Insights
Bruster's franchises typically achieve breakeven within 18 months and can expect an investment payback period of around 20 months. This relatively quick return on investment is appealing for franchisees looking to establish a profitable business without prolonged financial strain. Understanding these operational metrics is crucial for effective financial planning.
Growth and Expansion
Bruster's has demonstrated steady growth, with the number of franchised units increasing from 175 in 2019 and 2020 to 180 in 2021. This growth trajectory indicates a strong demand for the brand and presents opportunities for new franchisees to enter a market with an expanding customer base. The consistent unit growth reflects Bruster's commitment to franchise development and support.
Frequently Asked Questions
The initial investment for a Bruster's Real Ice Cream franchise ranges from $318,000 to $2,236,500, which includes the franchise fee and other startup costs.