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Cellairis Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a Cellairis Franchise?
To open a Cellairis franchise, you'll need to prepare for a total initial investment that ranges from $98,474 to $331,359. This includes a franchise fee of $25,000. Additionally, you should have liquid cash available between $100,099 and $209,159, and a net worth ranging from $250,000 to $500,000. Understanding these financial commitments is crucial to ensure you are ready for the responsibilities of franchise ownership.
What Are the Ongoing Fees and Royalties for Cellairis Franchisees?
As a Cellairis franchisee, you will be expected to pay a royalty fee of 5% on your unit's gross sales. Additionally, there is a marketing fee of 3% that contributes to brand promotion and advertising efforts. It's important to factor these ongoing fees into your financial planning to maintain profitability and ensure your franchise's success.
What Is the Average Revenue and Profitability for a Cellairis Franchise?
The average annual revenue for a Cellairis franchise unit is approximately $1,293,626, with a median revenue of $1,293,626 as well. The financial performance also indicates a gross profit margin of 92.23%, which is quite strong. With an EBITDA of $228,111, franchisees can expect a healthy return on their investment if managed effectively.
How Long Does It Take to Break Even on a Cellairis Franchise?
Franchisees can expect to reach their breakeven point within 12 months of operation. The investment payback period is typically around 24 months. This timeline highlights the potential for a quick return on investment, making Cellairis an appealing option for entrepreneurs looking to enter the franchise market.
Cellairis 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:
Cellairis Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 251 | 211 | 142 |
| Net Change YoY | -40 | -69 | |
| Franchised Units | 247 | 211 | 142 |
| Net Change YoY | -36 | -69 | |
| Corporate Units | 4 | 0 | 0 |
| Net Change YoY | -4 | 0 |
Investment Overview
The Cellairis franchise offers a range of initial investment options, with a low end of $98,474 and a high end of $331,359. The initial franchise fee is set at $25,000, making it accessible for aspiring entrepreneurs. Franchisees should also budget for a cash requirement ranging from $100,099 to $209,159, ensuring they have adequate funds to cover startup costs and initial operations.
Royalty and Marketing Fees
Cellairis requires a royalty fee of 5% on gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand presence and supporting franchisee marketing efforts. Understanding these ongoing costs is crucial for potential franchisees as they plan their financial projections and ensure profitability.
Financial Performance
The average annual revenue per unit for Cellairis is reported at $1,293,626, with a median annual revenue of $1,293,626. However, revenues can vary significantly, ranging from as low as $1,100 to as high as $1,365,550. This variance highlights the importance of location and management in driving sales performance within the franchise system.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 24 months, providing a relatively quick return on investment compared to many other franchise opportunities. This timeline is an attractive feature for potential investors looking to minimize risk.
Franchise Growth
As of 2020, Cellairis has seen a decline in franchised units, with 142 units compared to 247 in 2018. This trend may indicate market challenges or a strategic shift in the franchise's growth model. However, understanding the reasons behind this decline can help potential franchisees assess the stability and future prospects of the brand.
Operational Insights
Cellairis has an average EBITDA of $228,111, representing 17.62% of revenue. Operating expenses are significant, totaling $965,110 annually, which accounts for 74.68% of revenue. Effective management of these expenses is critical for franchisees to optimize profitability and ensure sustainable operations within the competitive landscape of mobile device repair services.
Frequently Asked Questions
The initial investment for a Cellairis franchise ranges from $98,474 to $331,359, which includes the franchise fee, equipment, and other startup costs.