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Drive N Style Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Costs for a Drive N Style Franchise?
To open a Drive N Style franchise, you will need to consider the initial investment, which ranges from $74,810 to $86,370. This includes a franchise fee of $45,000. Additionally, prospective franchisees should be prepared for ongoing royalty and marketing fees, which are set at 7.5% and 1% of gross sales, respectively. It's essential to have a cash reserve within the same range and a net worth between $100,000 and $500,000 to meet the financial requirements of the franchise.
What Can You Expect in Terms of Revenue from a Drive N Style Franchise?
Drive N Style franchises show promising revenue potential, with an average annual revenue of $241,923 per unit. The median revenue stands at $173,612, while some units have reported revenues as low as $73,235 and as high as $798,104. This variation indicates that location, management, and market conditions can significantly impact financial performance, making it crucial for franchisees to conduct thorough market research before investing.
How Quickly Can You Expect to Break Even with a Drive N Style Franchise?
Franchisees can anticipate a breakeven period of approximately 12 months after opening their Drive N Style location. With an investment payback period of around 22 months, this franchise opportunity allows for a relatively swift return on investment compared to many other franchise models. Understanding these timelines can help franchisees plan their financial strategies effectively.
What Are the Average Expenses for Operating a Drive N Style Franchise?
Operating a Drive N Style franchise involves various expenses, with total annual running costs averaging $13,496. This includes royalty and marketing fees of approximately $9,562 and operating expenses around $3,934. Keeping these expenses in check is vital for maintaining profitability, as they represent a small percentage of the overall revenue, allowing for a healthy gross profit margin of 76.4%. Understanding these costs can aid franchisees in budgeting and financial planning.
Drive N Style 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:
Drive N Style 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 | 6 | 8 | 14 |
| Net Change YoY | +2 | +6 | |
| Franchised Units | 6 | 7 | 14 |
| Net Change YoY | +1 | +7 | |
| Corporate Units | 0 | 2 | 2 |
| Net Change YoY | +2 | 0 |
Initial Investment
The Drive N Style franchise offers a relatively low initial investment ranging from $74,810 to $86,370. This includes a franchise fee of $45,000, making it accessible for aspiring entrepreneurs looking to enter the franchise market without significant upfront costs.
Ongoing Fees
Franchisees are required to pay a royalty fee of 7.5% on gross sales, along with a 1% marketing fee. These fees contribute to the ongoing support and brand marketing that Drive N Style provides, ensuring franchisees can effectively compete in their respective markets.
Revenue Potential
Drive N Style units have shown promising financial performance, with an average annual revenue of $241,923. The median annual revenue stands at $173,612, while some units have achieved revenues as high as $798,104, indicating strong earning potential for franchisees.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation, with an investment payback period of approximately 22 months. This relatively quick return on investment makes Drive N Style an attractive option for those seeking efficient profitability.
Company Growth
Since its inception, Drive N Style has experienced steady growth in franchised units. From 6 units in 2015 to 14 in 2017, the franchise's expansion reflects its increasing popularity and market acceptance, providing a solid foundation for future franchisees.
Financial Health
The average gross profit margin for Drive N Style is an impressive 76.4%, with operating expenses accounting for only 5.6% of revenue. This strong financial health allows franchisees to retain a significant portion of their earnings, enhancing overall profitability and sustainability.
Frequently Asked Questions
The initial investment for a Drive N Style franchise ranges from $74,810 to $86,370, which includes the franchise fee of $45,000.