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Dental Fix Franchise ProfileHealth & Beauty Franchises > Cosmetic Services |
What Are the Initial Investment Requirements for a Dental Fix Franchise?
To open a Dental Fix franchise, you'll need to prepare for an initial investment ranging from $62,600 to $153,500. This includes a franchise fee of $25,000, along with other startup costs. It's essential to have cash readily available within this range and meet the net worth requirement of $250,000 to $500,000 to ensure you can support your business during its early stages.
What Ongoing Fees Should You Expect as a Dental Fix Franchisee?
As a franchisee, you will be responsible for ongoing fees, including a royalty fee of 6% on your gross sales and a marketing fee of 1%. These fees contribute to the overall branding and support provided by Dental Fix, helping you attract and retain customers while ensuring you have the necessary resources for effective marketing efforts.
How Profitable Can a Dental Fix Franchise Be?
The average annual revenue per unit for a Dental Fix franchise is approximately $127,500, with a median annual revenue of $70,939. While performance can vary, the highest reported annual revenue for a unit reached $989,010. This indicates that with the right strategies and management, there is significant potential for profitability in this franchise model.
What Is the Expected Breakeven Time for a Dental Fix Franchise?
Franchisees can expect to reach breakeven within about 20 months of operation. This timeline reflects the ability to cover initial investments and ongoing expenses through generated revenue. Additionally, the investment payback period is estimated at 30 months, allowing franchisees to start seeing returns on their investment relatively quickly in the franchise lifecycle.
Dental Fix 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:
Dental Fix 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 | 107 | 100 | 93 |
| Net Change YoY | -7 | -7 | |
| Franchised Units | 107 | 100 | 93 |
| Net Change YoY | -7 | -7 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Dental Fix franchise offers a low to moderate initial investment range of $62,600 to $153,500, making it accessible for aspiring franchisees. The initial franchise fee is set at $25,000, while ongoing royalties are 6% of gross sales, complemented by a 1% marketing fee. To qualify, potential franchisees need a net worth between $250,000 and $500,000, ensuring they have the financial stability to support their business.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $127,500 per unit, with a median revenue of $70,939. The revenue range is significant, with the lowest reported at $54,140 and the highest at $989,010. This variation highlights the potential for growth and profitability within the Dental Fix model, depending on location and operational efficiency.
Financial Performance
The average annual revenue for all units in the Dental Fix franchise is around $2.97 million, with a gross profit margin of 42.3%. Operating expenses account for 27.8% of revenue, leading to an EBITDA of approximately $428,500. These figures indicate a healthy financial structure, allowing franchisees to manage costs effectively while maximizing profitability.
Breakeven and Payback
Franchisees can anticipate a breakeven period of about 20 months, with an investment payback time of approximately 30 months. This timeline provides a clear expectation for new franchisees regarding when they can expect to recover their initial investment and start generating profit.
Franchise Growth
Since its inception, Dental Fix has shown a gradual decline in the number of franchised units, from 107 in 2016 to 93 in 2018. This trend may reflect market adjustments or strategic realignments. However, the franchise remains committed to supporting its existing franchisees and optimizing performance across its network.
Corporate Structure
Dental Fix operates as a franchise system without any corporate-owned units, emphasizing a franchisee-centric approach. This structure allows franchisees to maintain autonomy while benefiting from the brand’s established reputation and support systems. The corporate team focuses on providing resources and guidance to enhance franchisee success in their local markets.
Frequently Asked Questions
The initial investment for a Dental Fix franchise ranges from $62,600 to $153,500, which includes a franchise fee of $25,000.