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C12 Group Franchise ProfileBusiness Services Franchises > Consulting |
What Are the Initial Costs to Open a C12 Group Franchise?
To start your journey with a C12 Group franchise, you should anticipate an initial investment ranging from $32,000 to $57,500. This includes a franchise fee that can vary between $30,000 and $50,000. It's essential to have liquid cash available within this range, along with a net worth requirement of $100,000 to $1,500,000. Understanding these financial commitments will help you assess your readiness for franchise ownership.
What Are the Ongoing Fees for C12 Group Franchisees?
As a franchisee, you will be responsible for ongoing fees that contribute to the overall success of your business. C12 Group charges a royalty fee of 6% on sales, along with a marketing fee of 1%. These fees are crucial for maintaining brand standards, supporting marketing initiatives, and ensuring continuous growth. Being aware of these ongoing costs will help you plan your financial strategy effectively.
What Is the Average Revenue Potential for a C12 Group Franchise?
C12 Group franchises have demonstrated a promising revenue potential, with an average annual revenue per unit of approximately $442,322.75. The median annual revenue stands at $281,620, showcasing a significant opportunity for profitability. However, it's important to note that revenues can vary widely, with the lowest reported annual revenue at $1,900 and the highest reaching $2,341,936. Understanding these figures can help you gauge the financial viability of this franchise opportunity.
What Is the Expected Timeframe for Breakeven and Investment Payback?
When investing in a C12 Group franchise, you can expect to reach breakeven within about 12 months. The investment payback period is estimated at 21 months, which indicates a relatively quick return on your initial investment. This timeframe is vital for potential franchisees to consider when planning their financial forecasts and evaluating the overall risk of their investment.
C12 Group 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:
C12 Group 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 | 55 | 55 | 55 |
| Net Change YoY | 0 | 0 | |
| Franchised Units | 53 | 54 | 54 |
| Net Change YoY | 1 | 0 | |
| Corporate Units | 2 | 1 | 1 |
| Net Change YoY | -1 | 0 |
Initial Investment
The C12 Group franchise offers a low initial investment range of $32,000 to $57,500, making it accessible for aspiring entrepreneurs. The franchise fee, which varies between $30,000 and $50,000, is a crucial upfront cost for new franchisees. With additional cash requirements and a net worth threshold of $100,000 to $1,500,000, potential franchisees should evaluate their financial readiness before committing.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, which contributes to the ongoing support and resources provided by the C12 Group. Additionally, a marketing fee of 1% ensures that franchisees benefit from brand-wide advertising initiatives. These fees are essential for maintaining brand visibility and driving customer engagement across all units.
Revenue Potential
The average annual revenue per unit for C12 Group franchises is approximately $442,322.75, with a median annual revenue of $281,620. This range highlights the potential for profitability within the franchise system. However, it is important to note that revenues can vary significantly, with the lowest annual revenue recorded at $1,900 and the highest reaching an impressive $2,341,936.
Breakeven and Payback Period
Franchisees can expect to reach their breakeven point within 12 months of operation, providing a relatively quick return on investment. The investment payback period is estimated at 21 months, allowing franchisees to recoup their initial costs and begin generating profit in a timely manner.
Franchise Growth
The C12 Group has demonstrated steady growth in its franchise network, with 53 franchised units in 2019 and maintaining 54 units in subsequent years. This stability indicates a solid foundation for potential franchisees, suggesting a supportive franchise system that can help new owners thrive in their business endeavors.
Financial Performance Metrics
Franchisees can expect a gross profit margin of 91.66%, showcasing the strong financial health of C12 Group units. Operating expenses average around $409,247.73, which is significant but manageable given the high revenue potential. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stands at approximately $282,263, reflecting the franchise's capacity for profitability and financial stability.
Frequently Asked Questions
The initial investment for a C12 Group franchise ranges from $32,000 to $57,500, which includes the franchise fee and other startup costs.