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Fiesta Insurance Franchise ProfileAccounting & Financial Franchises > Tax Services |
What Are the Initial Investment Requirements for a Fiesta Insurance Franchise?
To start a Fiesta Insurance franchise, you should prepare for an initial investment that ranges from $72,052 to $364,997. The franchise fee is set at $15,000, and you will need to have cash readily available between $72,052 and $127,999. Additionally, a net worth of $100,000 to $500,000 is required to ensure you have the financial stability to support your business operations.
What Are the Ongoing Fees Associated with a Fiesta Insurance Franchise?
Franchisees of Fiesta Insurance are subject to a royalty fee of 6% on their gross revenue. Furthermore, there is a marketing fee that ranges from $1,200 to $2,000 annually. These ongoing fees are essential for maintaining brand presence and ensuring effective marketing strategies that can drive customer engagement and sales.
What Are the Financial Performance Metrics for Fiesta Insurance Franchise Units?
On average, Fiesta Insurance franchise units generate annual revenues of approximately $345,945, with a median revenue of around $263,580. The highest reported annual revenue for a unit reaches an impressive $1,529,847, while the lowest stands at $2,976.26. Understanding these figures can help potential franchisees gauge the profitability and performance potential of the franchise.
What Is the Expected Return on Investment Timeline for a Fiesta Insurance Franchise?
Franchisees can expect to break even within 12 months of opening their Fiesta Insurance unit. This rapid payback period is attractive for many investors, as it indicates a strong potential for financial recovery and profitability. With the right management and operational strategies, achieving a return on investment within the first year is a realistic goal for new franchise owners.
Fiesta Insurance 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:
Fiesta Insurance Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| Total Units | 154 | 191 | 207 | 216 |
| Net Change YoY | 37 | 16 | 9 | |
| Franchised Units | 154 | 191 | 207 | 216 |
| Net Change YoY | 37 | 16 | 9 | |
| Corporate Units | 0 | 0 | 0 | 0 |
| Net Change YoY |
Franchise Overview
Fiesta Insurance offers a unique opportunity for aspiring franchisees to enter the insurance industry with a low initial investment. With a franchise fee of $15,000 and a total investment range of $72,052 to $364,997, it provides a viable option for those looking to start their own business in a growing market. The brand focuses on providing various insurance products, catering to diverse customer needs.
Financial Performance
Franchisees can expect an average annual revenue of $345,945, with a median revenue of approximately $263,580.77. The revenue potential is significant, with the highest annual revenue recorded at $1,529,847. This financial performance indicates that franchisees can achieve a strong return on investment, particularly with a breakeven time and investment payback period of just 12 months.
Ongoing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee ranging from $1,200 to $2,000 annually. These fees contribute to the ongoing support and marketing efforts provided by Fiesta Insurance, ensuring that franchisees can effectively promote their services and grow their customer base.
Initial Investment
The initial investment for a Fiesta Insurance franchise ranges from $72,052 to $364,997, which includes the franchise fee and other startup costs. Franchisees should also have liquid cash available between $72,052 and $127,999, and a net worth of $100,000 to $500,000 to qualify for the franchise opportunity, ensuring they have the financial stability to operate successfully.
Growth and Expansion
Fiesta Insurance has shown consistent growth in its franchised units, increasing from 154 units in 2017 to 216 units by 2020. This upward trend demonstrates the brand's appeal and potential for expansion, making it an attractive choice for investors looking to enter a stable and growing market.
Operational Insights
Franchisees can expect average operating expenses to be around $48,000 annually, which includes costs for rent, utilities, marketing, and salaries. With a gross profit margin of 28.5%, efficient management of these expenses is crucial for maximizing profitability and ensuring the long-term success of the franchise.
Frequently Asked Questions
The initial investment for a Fiesta Insurance franchise ranges from $72,052 to $364,997, depending on various factors such as location and setup costs.