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Electronic Restoration Services Franchise ProfileIndustrial Franchises > Industrial Cleaning |
What Are the Initial Investment Requirements for an Electronic Restoration Services Franchise?
To become an Electronic Restoration Services franchisee, you will need to prepare for a significant initial investment. The total investment ranges from $155,823 to $503,641, which includes a franchise fee of $85,000. Additionally, you should have cash reserves between $50,000 and $85,000 to cover initial operating expenses. It's important to ensure you meet the net worth requirement, which can range from $491,675 to $2,255,502, depending on the location and scale of your operation.
What Ongoing Fees Should You Expect as an Electronic Restoration Services Franchisee?
As a franchisee, you will need to budget for ongoing fees that can impact your profitability. This includes a royalty fee of 7% of your gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting the overall marketing strategy that drives customer traffic to your business. Understanding these costs ahead of time will help you plan your financial strategy effectively.
What Are the Financial Performance Metrics for Electronic Restoration Services Franchise Units?
The average annual revenue for an Electronic Restoration Services franchise unit is approximately $632,943, with a median revenue of $491,675. The lowest annual revenue reported is $72,430, while the highest can reach up to $2,255,502. The business model typically allows for a breakeven time of about 18 months and an investment payback period of around 12 months, making it an attractive option for those looking to enter the restoration services market.
What Are the Typical Expenses for Operating an Electronic Restoration Services Franchise?
Operating an Electronic Restoration Services franchise involves various expenses that must be accounted for in your financial planning. Key annual expenses include insurance costs ranging from $3,000 to $6,000, marketing and advertising expenses between $1,000 and $3,000, utilities from $3,000 to $5,000, and administrative salaries averaging $66,594. Overall, total annual expenses can range from $108,594 to $166,594, which is vital to consider when assessing your potential profitability.
Electronic Restoration Services 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:
Electronic Restoration Services Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 69 | 73 | 74 |
| Net Change YoY | 4 | 1 | |
| Franchised Units | 68 | 72 | 73 |
| Net Change YoY | 4 | 1 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Electronic Restoration Services franchise offers a range of investment options for aspiring franchisees. The initial investment ranges from $155,823 to $503,641, with an initial franchise fee of $85,000. Franchisees should be prepared for a cash requirement between $50,000 and $85,000, along with a net worth requirement of $491,675 to $2,255,502. This structure ensures that franchisees are adequately equipped to launch and sustain their businesses.
Revenue Potential
Franchisees can expect substantial revenue potential, with average annual revenue per unit reported at $632,943. The median annual revenue stands at $491,675, while some units have achieved as high as $2,255,502. This diverse range highlights the opportunity for growth, making Electronic Restoration Services a compelling option for those looking to enter the franchise space.
Operational Performance
The franchise demonstrates strong operational performance, with a breakeven time of approximately 18 months and an investment payback period of just 12 months. These metrics indicate a favorable return on investment, allowing franchisees to recoup their initial costs relatively quickly and start generating profit.
Financial Insights
The average profit and loss metrics reveal a gross profit margin of 31.2%, with average operating expenses accounting for 11.6% of revenue. This results in an EBITDA of $123,257, representing 19.5% of total revenue. These financial insights provide franchisees with a clear understanding of potential profitability and operational efficiency.
Franchise Growth
The Electronic Restoration Services franchise has shown steady growth, with franchised units increasing from 68 in 2018 to 73 in 2020. This growth trajectory reflects the brand’s expanding market presence and the increasing demand for restoration services, positioning franchisees for future success.
Ongoing Fees
Franchisees are required to pay a royalty fee of 7% of gross sales, along with a 2% marketing fee. These fees contribute to the ongoing support and marketing efforts provided by the franchisor, ensuring that franchisees remain competitive in the marketplace while benefiting from the brand's established reputation.
Frequently Asked Questions
The initial investment for an Electronic Restoration Services franchise ranges from $155,823 to $503,641, which includes the franchise fee of $85,000.