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Cookies by Design Franchise ProfileRetail Franchises > Specialty Retail |
What is the Initial Investment for a Cookies by Design Franchise?
To start a Cookies by Design franchise, you will need an initial investment ranging from $117,500 to $207,000. This includes a franchise fee of $30,000. It's essential to have liquid cash available within this range to cover startup costs, which can vary based on location and other factors. Additionally, you should be prepared for ongoing fees, including a royalty fee of 6% and a marketing fee of 3% on gross sales.
What are the Financial Performance Metrics for Cookies by Design?
The average annual revenue per Cookies by Design unit is approximately $150,000, with the lowest reported annual revenue being $50,000 and the highest reaching over $1.3 million. Franchisees can expect to break even within 12 months and achieve investment payback in about 16 months. Understanding these financial metrics can help you assess the potential profitability of the franchise.
What are the Ongoing Expenses for a Cookies by Design Franchise?
Operating a Cookies by Design franchise comes with various ongoing expenses. Rent and utilities can range from $6,000 to $20,000 annually, while marketing and advertising costs may range from $3,000 to $10,000. Other expenses include insurance premiums between $3,000 and $7,000, and professional fees for services like accounting, which can be around $2,000 to $5,000. Keeping track of these costs is crucial for maintaining profitability.
Is a Cookies by Design Franchise Right for You?
Cookies by Design offers a unique opportunity for those passionate about baking and customer service. With a well-established brand and a focus on quality products, franchisees can leverage a proven business model. However, it’s important to evaluate your financial readiness and commitment to the franchise system. If you enjoy working in a creative environment and have the drive to succeed, this franchise could be a rewarding venture.
Cookies by Design 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:
Cookies by Design Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 69 | 65 | 61 |
| Net Change YoY | -4 | -4 | |
| Franchised Units | 67 | 64 | 59 |
| Net Change YoY | -3 | -5 | |
| Corporate Units | 2 | 1 | 2 |
| Net Change YoY | -1 | +1 |
Investment Overview
The Cookies by Design franchise offers an accessible entry point for aspiring entrepreneurs with an initial investment ranging from $117,500 to $207,000. This includes a franchise fee of $30,000. Franchisees can expect a royalty fee of 6% on gross sales and a marketing fee of 3%, which supports brand visibility and customer engagement.
Financial Performance
Franchisees can anticipate an average annual revenue of approximately $150,000 per unit, with the potential for earnings ranging from $50,000 to over $1.3 million. The average breakeven time is estimated at 12 months, and investors can expect to recoup their initial investment within about 16 months, showcasing a favorable return on investment.
Franchise Growth
Since its inception, Cookies by Design has seen a steady presence in the market. As of 2017, there were 59 franchised units in operation, down from 67 in 2015. This trend highlights the need for potential franchisees to evaluate market conditions and operational strategies to ensure sustainable growth.
Corporate Units
In addition to franchised locations, Cookies by Design operates corporate units. As of 2017, there were two corporate units, indicating the brand's commitment to maintaining a hands-on approach in select markets. This dual model can provide valuable insights and support for franchisees navigating their own operations.
Operational Costs
Understanding the operational costs is crucial for franchise success. Average annual expenses include rent and utilities between $6,000 and $20,000, marketing and advertising costs ranging from $3,000 to $10,000, and insurance premiums between $3,000 and $7,000. These factors contribute to the overall financial health of each unit.
Support and Training
Cookies by Design offers comprehensive training and ongoing support to franchisees. This includes initial training programs covering operational procedures, marketing strategies, and customer service best practices. Continuous support ensures franchisees are equipped to manage their business effectively and adapt to changing market demands.
Frequently Asked Questions
The initial investment for a Cookies by Design franchise ranges from $117,500 to $207,000, which includes the initial franchise fee of $30,000.