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Fortune Management Franchise ProfileConsultant & Business Brokers > Business Coaching |
What Are the Initial Investment Requirements for a Fortune Management Franchise?
To open a Fortune Management franchise, you will need to prepare for a range of initial investment costs. The total initial investment can vary significantly, with a low end of approximately $33,100 and a high end reaching up to $150,000. This includes an initial franchise fee of $80,000. Additionally, franchisees should budget for ongoing costs, including a royalty fee of 12% on gross sales and a marketing fee of 17%. It's crucial to ensure that you meet the net worth requirement, which ranges from $100,000 to $500,000, to secure financing and support for your franchise operation.
What Are the Financial Performance Metrics for Fortune Management Franchise Units?
Fortune Management franchises have shown promising financial performance metrics. The average annual revenue per unit stands at $2,156,939, with a median annual revenue of $1,030,000. The lowest revenue recorded is $33,100, while the highest reaches an impressive $1,693,556. Franchisees can expect a breakeven time of around 18 months and an investment payback period of approximately 24 months, making it a potentially lucrative opportunity for those willing to commit to the brand.
What Are the Average Running Expenses for a Fortune Management Franchise?
Understanding the average running expenses is vital for potential franchisees. For a Fortune Management unit, the total annual running expenses amount to approximately $1,994,092. Key expense categories include compensation and management costs at $748,508, commissions at $386,068, and selling, general, and administrative expenses at $654,851. Additionally, franchisees should account for advertising and marketing expenses of $67,928 and other operational costs to ensure they maintain profitability while running their franchise.
How Many Franchise Units Does Fortune Management Have?
Fortune Management has shown steady growth in its franchise units over the past few years. In 2018, there were 63 franchised units, which increased to 65 in both 2019 and 2020. Notably, there are no corporate-owned units, indicating a strong focus on franchising as the primary growth strategy. This growth trajectory suggests a solid market presence and potential for further expansion, making it an attractive option for aspiring franchisees looking to join a growing brand.
Fortune Management 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:
Fortune Management 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 | 63 | 65 | 65 |
| Net Change YoY | 2 | 0 | |
| Franchised Units | 63 | 65 | 65 |
| Net Change YoY | 2 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Fortune Management franchise offers a low initial investment starting at $33,100, with a high end of $150,000. The initial franchise fee is set at $80,000. Potential franchisees should be prepared for ongoing costs, including a 12% royalty fee on gross sales and a 17% marketing fee. The required cash to get started ranges from $33,100 to $150,000, with a net worth requirement of $100,000 to $500,000.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $2,156,939 per unit, with a median revenue of $1,030,000. The revenue range varies significantly, with the lowest annual revenue reported at $33,100 and the highest at $1,693,556. This variability highlights the potential for profitability depending on location and management effectiveness.
Breakeven and Payback
The breakeven period for a Fortune Management franchise is estimated at 18 months, which indicates a reasonable timeframe for recovering initial investments. Additionally, franchisees can expect to see a return on investment within approximately 24 months, making it a relatively attractive opportunity for new investors.
Franchise Growth
Since its inception, Fortune Management has shown steady growth in franchised units, starting with 63 units in 2018 and reaching 65 units by 2020. This consistent growth demonstrates the brand's stability and appeal within the franchise market, suggesting a solid foundation for future expansion.
Financial Performance
The average financial performance metrics reveal that the cost of goods sold (COGS) accounts for 88.9% of revenue, resulting in a gross profit margin of 11.1%. Operating expenses, which also represent 88.9% of revenue, emphasize the importance of effective cost management for franchise profitability. Franchisees should be aware of these financial dynamics when planning their operations.
Operational Expenses
Franchisees should anticipate various annual operating expenses totaling approximately $1,994,092. Key expense categories include compensation and management costs at $748,508, commissions at $386,068, and selling, general, and administrative expenses at $654,851. Understanding these costs is crucial for maintaining healthy profit margins and ensuring the long-term success of the franchise.
Frequently Asked Questions
The initial investment for a Fortune Management franchise ranges from $33,100 to $150,000, which includes the franchise fee of $80,000.