|
The Flying Locksmiths Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for The Flying Locksmiths Franchise?
To start a Flying Locksmiths franchise, you will need to budget for an initial investment ranging from $161,975 to $406,975. This includes a franchise fee of $75,000. Additionally, potential franchisees should have cash readily available between $75,000 and $300,000 and a net worth of $250,000 to $500,000. Understanding these financial commitments is crucial for evaluating your readiness to enter the locksmithing business.
What Are the Financial Performance Metrics for The Flying Locksmiths Franchise?
The Flying Locksmiths franchise offers promising financial performance, with an average annual revenue per unit of $702,024. The median revenue stands at $474,372, while the highest revenue recorded is an impressive $2,766,684. With a breakeven time of just 12 months and an investment payback period of approximately 24 months, this franchise presents a potentially lucrative opportunity for aspiring entrepreneurs.
What Are the Ongoing Fees Associated with The Flying Locksmiths Franchise?
Franchisees of The Flying Locksmiths are subject to ongoing fees that include an 8% royalty fee on gross sales and a 1% marketing fee. These fees contribute to the overall operational expenses, which average around $458,351 annually. It's essential for potential franchisees to factor these costs into their financial planning to ensure sustainable profitability.
What Support and Resources Does The Flying Locksmiths Provide to Franchisees?
The Flying Locksmiths franchise offers comprehensive support to its franchisees, including training programs and ongoing operational assistance. This support is designed to help franchisees navigate the locksmithing industry effectively, manage their businesses, and optimize profitability. Whether you are a first-time franchisee or a seasoned investor, having access to a robust support system can significantly impact your success in running a Flying Locksmiths franchise.
The Flying Locksmiths 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:
The Flying Locksmiths Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 94 | 97 | 94 |
| Net Change YoY | 3 | -3 | |
| Franchised Units | 93 | 96 | 93 |
| Net Change YoY | 3 | -3 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Flying Locksmiths franchise offers a range of investment options, with a low initial investment of $161,975 and a high of $406,975. The initial franchise fee is set at $75,000, with ongoing royalty fees of 8% and a marketing fee of 1%. Prospective franchisees should be prepared to have between $75,000 and $300,000 in cash readily available, along with a net worth requirement of $250,000 to $500,000.
Revenue Potential
Franchisees can expect substantial revenue generation, with an average annual revenue per unit reported at $702,024. The median annual revenue stands at $474,372, while the lowest annual revenue recorded is $126,505, and the highest reaches an impressive $2,766,684. This diverse revenue range highlights the potential for profitability within the franchise.
Operational Performance
The Flying Locksmiths franchise demonstrates a strong operational performance, with a breakeven time of just 12 months. Franchisees can anticipate an investment payback period of approximately 24 months, indicating a favorable return on investment for dedicated operators.
Franchise Growth
The Flying Locksmiths has shown steady growth in franchised units, maintaining a total of 93 units in both 2020 and 2022, with a slight increase to 96 units in 2021. This stability reflects the brand's ability to attract new franchisees while retaining existing ones, contributing to a robust franchise network.
Financial Metrics
The financial health of The Flying Locksmiths is underscored by its average gross profit margin of 52%. With operating expenses averaging $458,351 annually, franchisees can expect an EBITDA of $307,658, which represents 44% of revenue. These metrics provide a solid foundation for financial planning and performance evaluation.
Support and Training
The Flying Locksmiths franchise offers comprehensive support and training to its franchisees. This includes initial training programs, ongoing operational support, and marketing assistance, ensuring that franchisees are well-equipped to manage their businesses effectively and drive growth in their local markets.
Frequently Asked Questions
The initial investment for a The Flying Locksmiths franchise ranges from $161,975 to $406,975, which includes the franchise fee of $75,000.