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Do It Best Franchise ProfileRetail Franchises > Specialty Retail |
What is the Investment Range for a Do It Best Franchise?
The initial investment for a Do It Best franchise ranges from $440,400 to $1,128,400. This includes a franchise fee of $4,400, and franchisees should be prepared for ongoing royalty fees of 5%. It's essential to have a cash reserve within the same range, as well as a net worth that meets these financial requirements. Understanding the total investment needed is crucial for aspiring franchisees to ensure they are financially equipped to start their business.
What is the Revenue Potential for Do It Best Franchisees?
Do It Best franchisees can expect an average annual revenue of approximately $818,696, with a median revenue of $1,128,400. The revenue figures indicate a promising financial outlook, with the lowest reported annual revenue at $440,400 and the highest at $1,128,400. Having a clear understanding of these revenue expectations can help potential franchisees assess the viability of their investment and set realistic financial goals.
What are the Expected Breakeven and Payback Periods?
Franchisees can anticipate reaching their breakeven point within 12 months of operation, which is relatively quick compared to many other franchise models. The investment payback period is estimated at 48 months, providing a clear timeline for when franchisees can expect to recoup their initial investment. These metrics are vital for financial planning and can significantly influence the decision-making process for potential investors.
What are the Operating Expenses for a Do It Best Franchise?
The average operating expenses for a Do It Best franchise amount to around $46,200 annually, primarily covering rent and utilities. While specific costs for marketing, sales, and management are not detailed, understanding the general operating expense structure is essential for franchisees to effectively manage their finances and maintain profitability. Keeping track of these expenses will help franchisees optimize their operations and ensure long-term success.
Do It Best 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:
Do It Best Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2012 | 2013 | 2014 |
|---|---|---|---|
| Total Units | 3416 | 3403 | 3388 |
| Net Change YoY | -13 | -15 | |
| Franchised Units | 3416 | 3403 | 3388 |
| Net Change YoY | -13 | -15 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Company Background
Do It Best is a leading hardware cooperative, established to support independent retailers across the United States. With a network of thousands of locations, Do It Best offers a wide range of products, including tools, home improvement supplies, and outdoor living essentials. The cooperative model empowers members to leverage collective buying power while maintaining their unique brand identities and local market presence.
Franchise Opportunity
Joining the Do It Best franchise network provides aspiring entrepreneurs with a solid foundation for success in the hardware retail industry. With a low initial investment ranging from $440,400 to $1,128,400, franchisees gain access to a well-recognized brand and extensive support systems, including training and marketing resources. This opportunity allows franchisees to tap into a growing market while benefiting from the cooperative's established reputation.
Financial Overview
Do It Best franchises demonstrate strong financial performance, with average annual revenue per unit reaching approximately $818,696. The franchise model boasts a breakeven time of just 12 months, allowing new owners to recoup their initial investment relatively quickly. With a manageable royalty fee of 5% and no mandatory marketing fee, franchisees can maintain a healthy profit margin while reinvesting in their businesses.
Investment Requirements
To become a Do It Best franchisee, candidates must meet specific financial criteria. The initial franchise fee is set at $4,400, while potential owners should have a net worth between $440,400 and $1,128,400. Additionally, franchisees must have access to cash in the same range, ensuring they are adequately prepared for the financial commitments associated with running a successful franchise.
Support and Training
Do It Best provides comprehensive support to its franchisees, including initial training programs and ongoing operational assistance. Franchisees benefit from a dedicated team that offers guidance in areas such as inventory management, marketing strategies, and customer service. This robust support network empowers franchise owners to navigate the complexities of the retail environment effectively.
Market Presence
With a consistent presence in the hardware retail sector, Do It Best has shown resilience and adaptability. The cooperative has maintained a steady number of franchised units, with 3,416 in 2012, 3,403 in 2013, and 3,388 in 2014. This stability reflects the brand's commitment to supporting its franchisees and fostering a collaborative community among independent retailers.
Frequently Asked Questions
The initial investment for a Do It Best franchise ranges from $440,400 to $1,128,400, which includes the franchise fee and other startup costs.