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Creamistry Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Creamistry Franchise?
To open a Creamistry franchise, you'll need to prepare for a significant initial investment ranging from $224,500 to $576,500. This includes a franchise fee of $40,000. Additionally, you should have a net worth of between $100,000 and $1,000,000. It's essential to assess your financial readiness to cover not just the startup costs but also ongoing expenses like royalties and marketing fees. The royalty fee for a new unit is set at 6%, while the marketing fee is 1.50%.
What Is the Revenue Potential for a Creamistry Franchise?
Creamistry franchises show promising revenue potential, with an average annual revenue per unit of approximately $312,346 and a median of $469,310. The revenue can vary significantly, with the lowest annual revenue reported at $44,072 and the highest at $495,562. Understanding these figures can help you gauge the financial viability of investing in a Creamistry franchise and set realistic income expectations.
What Are the Financial Performance Metrics for Creamistry Franchisees?
The financial performance of Creamistry units indicates a healthy gross profit margin of 66%, with an average EBITDA of $152,100, representing 33% of revenue. Costs of goods sold (COGS) average around $155,000, accounting for 34% of revenue. These metrics provide insight into the profitability of operating a Creamistry franchise, helping potential franchisees evaluate the business model's sustainability and their potential return on investment.
How Long Does It Take to Break Even with a Creamistry Franchise?
Franchisees can expect to break even within 12 months of operation, with an investment payback period of approximately 24 months. This timeline is crucial for aspiring entrepreneurs to consider, as it reflects the speed at which they can recover their initial investment and begin to realize profits. Being aware of these timelines can aid in planning and financial forecasting as you embark on your Creamistry franchise journey.
Creamistry 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:
Creamistry Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 11 | 34 | 46 |
| Net Change YoY | 23 | 12 | |
| Franchised Units | 10 | 32 | 45 |
| Net Change YoY | 22 | 13 | |
| Corporate Units | 1 | 2 | 1 |
| Net Change YoY | 1 | -1 |
Investment Overview
Creamistry offers a unique investment opportunity for aspiring franchisees, with an initial investment ranging from $224,500 to $576,500. This includes a franchise fee of $40,000. Potential franchisees should be prepared for ongoing royalty fees of 6% and a marketing fee of 1.5%, ensuring that they are well-equipped to support their business and the brand's growth.
Financial Performance
The average annual revenue per Creamistry unit is approximately $312,346, with a median annual revenue of $469,310. Franchisees can expect a breakeven time of around 12 months and an investment payback period of about 24 months, making it an attractive option for those looking for a profitable venture in the dessert industry.
Franchised and Corporate Units
Since its inception, Creamistry has shown steady growth in franchised units. In 2016, there were 10 franchised units, which increased to 32 in 2017 and 45 in 2018. The company also operates corporate units, with one in 2016, two in 2017, and one in 2018, showcasing a balanced approach to expansion and brand presence.
Average Profit and Loss Metrics
The average P&L metrics for Creamistry indicate a gross profit margin of 66%, with cost of goods sold (COGS) at 34% of revenue. Operating expenses average around $150,000, leading to an EBITDA of approximately $152,100, which represents 33% of total revenue. These figures highlight the potential for strong profitability within the franchise model.
Ongoing Expenses
Franchisees should be aware of various ongoing expenses, including rent, utilities, and marketing, which are variable and not specifically defined. However, insurance costs range from $3,000 to $6,000 annually. Understanding these expenses is crucial for effective financial planning and operational management.
Brand Positioning
Creamistry stands out in the dessert market by offering a customizable ice cream experience made fresh to order using liquid nitrogen. This innovative approach not only attracts customers but also enhances the overall brand experience. With a commitment to quality and creativity, Creamistry aims to create memorable moments for its guests, making it a compelling choice for franchise ownership.
Frequently Asked Questions
The initial investment for a Creamistry franchise ranges from $224,500 to $576,500. This includes the franchise fee, equipment, and other startup costs.