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Destination Map Franchise ProfileAdvertising & Marketing Franchises > Signage |
What Are the Initial Investment Requirements for a Destination Map Franchise?
To become a franchisee with Destination Map, you need to prepare for an initial investment ranging from $35,950 to $45,950. This includes a franchise fee of $25,000. Additionally, you should have at least $25,000 in cash readily available and a net worth between $200,000 and $400,000. These financial prerequisites are essential to ensure you have the resources to successfully launch and sustain your franchise.
What Are the Ongoing Fees for a Destination Map Franchise?
Once you open a Destination Map franchise, you will be responsible for ongoing fees that include a royalty fee of 10% of your unit's revenue and a marketing fee of 1%. These fees contribute to the overall support and promotional efforts of the brand, helping you attract customers and grow your business. Understanding these fees is crucial for managing your franchise’s financial health.
What Is the Financial Performance of a Destination Map Franchise?
Destination Map franchises have shown promising financial performance, with average annual revenue per unit around $53,175. The revenue can vary, with the lowest reported at $28,000 and the highest at $76,877. This range indicates the potential for profitability, but success will ultimately depend on effective management and local market conditions.
How Long Does It Take to Break Even with a Destination Map Franchise?
Franchisees can expect a breakeven period of approximately 24 months. However, the investment payback period can be as short as 12 months for well-performing units. This timeline is important for potential franchisees to consider, as it impacts cash flow and overall financial planning for the initial years of operation.
Destination Map 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:
Destination Map 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 | 126 | 132 | 132 |
| Net Change YoY | 6 | 0 | |
| Franchised Units | 120 | 128 | 129 |
| Net Change YoY | 8 | 1 | |
| Corporate Units | 6 | 4 | 3 |
| Net Change YoY | -2 | -1 |
Initial Investment
The initial investment for a Destination Map franchise ranges from $35,950 to $45,950. This includes a franchise fee of $25,000, which is an essential upfront cost for new franchisees. Understanding these financial requirements is crucial for aspiring entrepreneurs looking to enter the franchise market.
Ongoing Fees
Franchisees are required to pay a royalty fee of 10% on gross sales, along with a marketing fee of 1%. These ongoing fees contribute to the support and resources provided by the franchisor, helping franchisees maintain brand standards and drive local marketing efforts.
Financial Performance
The average annual revenue per unit for Destination Map franchises is approximately $53,175, with a median revenue of $53,174. This financial performance indicates a solid revenue potential for franchisees, though individual results may vary based on location and management.
Breakeven and Payback
Franchisees can expect to breakeven within 24 months of operation, with an investment payback period of just 12 months. This relatively quick return on investment makes Destination Map an attractive option for those looking to start a franchise business.
Franchise Growth
Since its inception, Destination Map has shown steady growth in franchised units, with 120 units in 2016, increasing to 129 units by 2018. This growth trajectory reflects the brand's expanding market presence and the increasing interest from franchisees in this business model.
Operational Expenses
Average annual running expenses for a Destination Map franchise total around $4,425. These expenses include costs for computer systems, licenses, supplies, insurance, and sales expenses. Understanding these operational costs is vital for franchisees to manage their budgets effectively and maintain profitability.
Frequently Asked Questions
The initial investment for a Destination Map franchise ranges from $35,950 to $45,950, which includes the franchise fee and other startup costs.