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Certified Restoration Drycleaning Network Franchise ProfileCleaning Franchises > Dry Cleaning |
What Are the Initial Investment Requirements for a Certified Restoration Drycleaning Network Franchise?
To open a Certified Restoration Drycleaning Network franchise, you will need to consider an initial investment that ranges from $45,600 to $513,850. The franchise fee is set at $45,600, and you should also prepare for ongoing royalty fees of 6% and a marketing fee of 1%. Additionally, you must have cash readily available between $33,600 and $65,000, along with a net worth requirement ranging from $200,000 to $500,000. These figures are essential for assessing your financial readiness for this franchise opportunity.
What Is the Revenue Potential for a Certified Restoration Drycleaning Network Franchise?
The average annual revenue per unit for a Certified Restoration Drycleaning Network franchise is approximately $507,674, with a median revenue of $3,731. The revenue can vary significantly, with the lowest annual revenue recorded at $134,202 and the highest reaching $1,276,811. This wide range highlights the potential for profitability, making it crucial for prospective franchisees to analyze their market and operational strategies to maximize revenue.
What Are the Expected Operational Costs for a Certified Restoration Drycleaning Network Franchise?
Operating a Certified Restoration Drycleaning Network franchise comes with various expenses. Annual costs typically include rent and utilities at about $12,000, marketing and advertising expenses of $5,000, and salaries for management and administration totaling around $25,000. Overall, the average annual running expenses amount to approximately $45,600. Understanding these costs is vital for effective budgeting and financial planning as a franchisee.
What Is the Typical Breakeven and Investment Payback Period for a Certified Restoration Drycleaning Network Franchise?
Franchisees of the Certified Restoration Drycleaning Network can expect to reach breakeven within approximately 12 months of operation. The investment payback period is notably efficient, averaging around 9 months. These timelines indicate a strong potential for quick returns, making this franchise an attractive option for entrepreneurs looking to enter the restoration and dry cleaning industry.
Certified Restoration Drycleaning Network 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:
Certified Restoration Drycleaning Network Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 135 | 128 | 125 |
| Net Change YoY | -7 | -3 | |
| Franchised Units | 134 | 127 | 124 |
| Net Change YoY | -7 | -3 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Certified Restoration Drycleaning Network offers a range of initial investment options, with costs ranging from $45,600 to $513,850. The franchise fee is set at $45,600, making it accessible for aspiring entrepreneurs looking to enter the restoration and drycleaning industry. A cash requirement of $33,600 to $65,000 is necessary to ensure franchisees have adequate working capital to start their operations.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $101,370 per unit, with a median revenue of $3,731. The revenue range is substantial, with the lowest reported annual revenue at $134,202 and the highest at $1,276,811, showcasing the potential for profitability in various market conditions.
Financial Performance
The average financial metrics indicate a healthy business model, with a gross profit margin of 87.33% and an EBITDA of 71.78%. Operating expenses are manageable at around 15.50% of revenue, allowing franchisees to maintain a strong bottom line. The average annual revenue supports a robust operational framework for franchisees.
Royalties and Marketing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 1%. These fees contribute to the overall brand strength and help in maintaining a competitive edge in the restoration drycleaning sector, ensuring that franchisees benefit from collective marketing efforts.
Breakeven and Payback
The Certified Restoration Drycleaning Network boasts an attractive breakeven time of just 12 months, with an investment payback period of 9 months. This swift return on investment makes it an appealing option for entrepreneurs looking for a quick path to profitability in the franchise landscape.
Franchise Growth
The franchise has shown a stable presence in the market, with 134 franchised units in 2020, 127 in 2021, and 124 in 2022. This slight decline indicates a mature franchise system, where existing franchisees are focused on optimizing performance rather than rapid expansion, providing a stable environment for new franchisees entering the network.
Frequently Asked Questions
The initial investment for a Certified Restoration Drycleaning Network franchise ranges from $45,600 to $513,850, which includes the franchise fee and other startup costs.