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DUCTZ Franchise ProfileHome Services Franchises > HVAC Services |
What is the Initial Investment for a DUCTZ Franchise?
To open a DUCTZ franchise, you should expect an initial investment ranging from $68,104 to $235,872. This includes a franchise fee of $49,900. Additionally, you will need to have cash available between $68,104 and $115,872. It's essential to prepare for ongoing expenses, including a 10% royalty fee on revenue and a 1% marketing fee, which are crucial for maintaining brand presence and operational support.
What are the Financial Performance Metrics for DUCTZ?
The average annual revenue for a DUCTZ unit is approximately $616,167, with a median annual revenue of $384,448. The revenue can vary significantly, with the lowest reported annual revenue at $71,078 and the highest at over $3.1 million. Franchisees can expect to break even in about 18 months and often see a return on investment within 15 months, making this a potentially lucrative opportunity for investors.
What are the Operational Requirements for DUCTZ Franchisees?
Operating a DUCTZ franchise involves managing various expenses, including general administrative costs of around $1,218,939 annually, alongside marketing and utilities. Franchisees should be prepared for a total operating expense of approximately $1,286,944 per year. Understanding these costs is vital for effective budgeting and ensuring profitability while maintaining service quality.
What is the Growth Potential of DUCTZ Franchise?
The DUCTZ franchise has shown steady growth, with 68 franchised units in 2023, a slight increase from 67 in 2022. The franchise has maintained a consistent number of corporate units at five since 2021. This stability indicates a solid foundation and potential for expansion in the duct cleaning and indoor air quality market, appealing to both new and seasoned franchisees looking to invest in a growing sector.
DUCTZ 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:
DUCTZ Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 77 | 72 | 73 |
| Net Change YoY | -5 | +1 | |
| Franchised Units | 72 | 67 | 68 |
| Net Change YoY | -5 | +1 | |
| Corporate Units | 5 | 5 | 5 |
| Net Change YoY | 0 | 0 |
Initial Investment
The DUCTZ franchise offers a range of investment options, with a low initial investment of $68,104 and a high of $235,872. The franchise fee is set at $49,900, making it accessible for aspiring entrepreneurs looking to enter the air duct cleaning industry. Additional costs may include a cash requirement ranging from $68,104 to $115,872, ensuring that franchisees are well-prepared for operational expenses from the outset.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 10% on gross sales, along with a marketing fee of 1%. These fees are essential for maintaining brand strength and supporting collective marketing efforts, which can enhance local visibility and drive customer engagement.
Financial Performance
The average annual revenue per DUCTZ unit stands at approximately $616,167, with a median revenue of $384,448. This financial performance indicates a strong earning potential for franchisees, though revenues can vary widely, with the lowest annual revenue recorded at $71,078 and the highest at over $3 million.
Breakeven and Payback Period
Franchisees can expect to reach their breakeven point within 18 months of operation, with an investment payback period of about 15 months. These timelines highlight the potential for a quick return on investment, making DUCTZ an attractive option for those seeking profitable franchise opportunities.
Franchise Growth
Since its inception, DUCTZ has demonstrated consistent growth, with 68 franchised units reported in 2023, down slightly from 72 in 2021. The stability in unit count reflects the brand's resilience and the ongoing demand for air duct cleaning services, essential for maintaining indoor air quality.
Corporate Structure
DUCTZ operates through a well-defined corporate structure, with five company-owned units consistently maintained since 2021. This structure supports franchisees by providing a solid operational foundation and expertise, ensuring that the franchise network is backed by experienced leadership and strategic guidance.
Frequently Asked Questions
The initial investment for a DUCTZ franchise ranges from $68,104 to $235,872, which includes the franchise fee and other startup costs.