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Flame Broiler Franchise ProfileFood Franchises > Fast Food |
Investment Overview for Flame Broiler Franchise
The initial investment to open a Flame Broiler franchise ranges between $370,116 and $599,763. This includes a franchise fee of $25,000. Franchisees should also be prepared for ongoing costs, such as a 5% royalty fee and a 3% marketing fee. To get started, a cash reserve of $62,980 to $125,000 is required, along with a net worth of $500,000 to $1,000,000.
Revenue Potential of Flame Broiler
Flame Broiler franchises have demonstrated strong revenue potential, with an average annual revenue of $505,174 per unit. The highest reported annual revenue reaches $772,127, while the lowest is $192,021. With effective management and marketing strategies, franchisees can tap into the growing demand for healthy fast-casual dining options.
Operational Insights for Franchisees
Understanding the operational costs is crucial for success as a Flame Broiler franchisee. The average annual running expenses total approximately $366,049, which includes rent, utilities, and employee salaries. Proper budgeting and cost management can help maintain profitability and ensure a healthy bottom line.
Growth and Expansion of Flame Broiler
Flame Broiler has shown a steady growth trajectory, with 195 franchised units in 2018, decreasing to 159 by 2020. Despite a slight decline in total units, the brand continues to expand its presence, with an increase in corporate-owned locations from 0 to 8 during the same period. This indicates a commitment to growth and offers franchisees potential for future development.
Flame Broiler 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:
Flame Broiler 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 | 195 | 181 | 167 |
| Net Change YoY | -14 | -14 | |
| Franchised Units | 195 | 181 | 159 |
| Net Change YoY | -14 | -22 | |
| Corporate Units | 0 | 6 | 8 |
| Net Change YoY | 6 | 2 |
Initial Investment
The Flame Broiler franchise requires an initial investment ranging from $370,116 to $599,763. This includes a franchise fee of $25,000, along with necessary startup costs such as equipment, inventory, and leasehold improvements. Potential franchisees should also consider the cash required, which is between $62,980 and $125,000, to ensure a smooth launch.
Financial Performance
Flame Broiler franchises show promising financial metrics, with an average annual revenue of $505,174 per unit. The revenue ranges from a low of $192,021 to a high of $772,127. This variability highlights the potential for profitability, depending on factors like location and operational efficiency.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, along with a marketing fee of 3%. These fees contribute to the overall brand support and marketing initiatives that help drive customer traffic and brand recognition, essential for building a successful franchise.
Required Financial Qualifications
Aspiring franchisees must meet specific financial qualifications, including a net worth requirement of $500,000 to $1,000,000. This ensures that franchisees have the financial stability to operate their business effectively and navigate any initial challenges.
Breakeven and Payback Period
The average breakeven time for a Flame Broiler franchise is approximately 12 months, with an investment payback period of around 24 months. This relatively quick return on investment can be attractive to potential franchisees looking for a viable business opportunity.
Growth and Unit Performance
As of 2020, Flame Broiler had a total of 167 units, with a mix of 159 franchised and 8 corporate locations. The franchise has seen a gradual decline in total units from 2018 to 2020, indicating the need for strategic growth initiatives to stabilize and expand the brand's footprint in the market.
Frequently Asked Questions
The initial investment for a Flame Broiler franchise ranges from $370,116 to $599,763, which includes the franchise fee and other startup costs.