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City Wide Franchise ProfileConsultant & Business Brokers > Franchise Consulting |
What is the Initial Investment for a City Wide Franchise?
To launch a City Wide franchise, you will need to prepare for an initial investment ranging between $178,150 and $379,100. This includes a franchise fee of $70,000. Additionally, you should have cash available between $92,500 and $127,500 to cover startup costs. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the journey ahead.
What are the Financial Expectations for City Wide Franchisees?
City Wide franchisees can anticipate an average annual revenue of approximately $4,198,868 per unit, with a median revenue of $4,036,065. The lowest recorded annual revenue is $198,053, while the highest reaches an impressive $42,025,444. With a breakeven time of about 18 months and an investment payback period of around 17 months, potential franchisees should evaluate these figures to assess the profitability of their investment.
What are the Ongoing Fees for a City Wide Franchise?
Franchisees should be aware of ongoing fees that contribute to the overall operational costs. City Wide charges a royalty fee of 5% on revenue and a marketing fee of 1%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can ultimately help drive sales and customer engagement. Understanding these fees will help franchisees plan their financial strategies effectively.
How Many Units Does City Wide Currently Operate?
As of 2022, City Wide operates a total of 68 units, with 67 being franchised and 1 corporate-owned. Over the past few years, the franchise has seen steady growth, increasing from 60 franchised units in 2020 to 67 in 2022. This growth trajectory indicates a positive trend for potential franchisees, suggesting a strong market presence and the opportunity for further expansion within the City Wide brand.
City Wide 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:
City Wide 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 | 61 | 67 | 68 |
| Net Change YoY | 6 | 1 | |
| Franchised Units | 60 | 66 | 67 |
| Net Change YoY | 6 | 1 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
City Wide is an attractive franchise opportunity with a low initial investment ranging from $178,150 to $379,100. A franchise fee of $70,000 is required, along with a cash requirement of $92,500 to $127,500. The franchise model supports new franchisees with a manageable royalty fee of 5% and a marketing fee of 1%, making it accessible for aspiring entrepreneurs looking to enter the franchise market.
Financial Performance
On average, City Wide units generate impressive annual revenues, with the average reaching $4,198,868 and a median of $4,036,065. The financial metrics indicate a strong potential for profitability, with the highest annual revenue reported at $42,025,444. Franchisees can expect a breakeven time of approximately 18 months and an investment payback period of 17 months, making it a viable option for those seeking a solid return on investment.
Franchise Growth
City Wide has demonstrated steady growth in franchised units, increasing from 60 in 2020 to 67 in 2022. This growth trajectory reflects the brand’s expanding market presence and the increasing interest from potential franchisees. The consistency in corporate units, with only one corporate location maintained throughout the years, highlights the focus on franchising as a key growth strategy.
Operational Expenses
Franchisees should be aware of the operational expenses associated with running a City Wide unit. The average total annual expenses amount to $7,579,575, which includes costs for goods sold, operating expenses, sales expenses, and marketing. Understanding these expenses is crucial for effective budgeting and financial planning, ensuring that franchisees can maintain profitability while managing their operations efficiently.
Support and Training
City Wide provides comprehensive support and training for franchisees to ensure their success. The franchise system includes initial training programs, ongoing support, and access to a network of experienced franchisees. This support structure is designed to equip new franchise owners with the knowledge and tools needed to navigate the challenges of running a business and to maximize their operational effectiveness.
Market Position
City Wide operates in a competitive landscape, focusing on delivering exceptional service and quality to its clients. The brand's commitment to excellence positions it favorably within the franchise sector, attracting both new and seasoned investors. As the demand for reliable service solutions continues to grow, City Wide's established reputation and business model offer a promising opportunity for franchisees looking to capitalize on this expanding market.
Frequently Asked Questions
The initial investment for a City Wide franchise ranges from $178,150 to $379,100. This includes the franchise fee, equipment, and other startup costs.