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Freshii Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Freshii Franchise?
To open a Freshii franchise, you will need to prepare for a significant financial commitment. The initial investment ranges from $169,000 to $636,000, which includes a franchise fee of $30,000. Additionally, you should be ready to cover ongoing costs, such as a 6% royalty fee on sales and a marketing fee of 1.5%. It’s essential to have a net worth between $500,000 and $1,500,000 to qualify for this franchise opportunity.
What Are the Revenue Expectations for Freshii Franchisees?
Freshii franchisees can anticipate varying revenue levels based on their location and management. The average annual revenue per unit is approximately $161,000, with a median of $500,000. However, some units report revenues as low as $75,000, while others can reach up to $1,200,000. Understanding these figures can help you set realistic financial goals and assess the potential return on your investment.
How Quickly Can You Expect to Break Even with a Freshii Franchise?
One of the appealing aspects of a Freshii franchise is the relatively quick breakeven period, which is typically around 12 months. This means that with effective management and a solid marketing strategy, you could recover your initial investment within the first year of operation. Additionally, many franchisees report achieving investment payback within the same timeframe, making it a potentially lucrative opportunity.
What Is the Current Growth Trend for Freshii Franchises?
Freshii has experienced fluctuations in the number of franchised units over recent years. In 2019, there were 121 franchised units, which decreased to 87 in 2020 and further to 64 in 2021. This trend indicates a need for careful market analysis and strategic planning if you're considering entering the Freshii franchise system. Understanding the reasons behind these changes can help you make informed decisions about your investment and operational strategies.
Freshii 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:
Freshii Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 123 | 87 | 64 |
| Net Change YoY | -36 | -23 | |
| Franchised Units | 121 | 87 | 64 |
| Net Change YoY | -34 | -23 | |
| Corporate Units | 2 | 0 | 0 |
| Net Change YoY | -2 | 0 |
Investment Overview
Freshii offers a compelling investment opportunity with an initial investment ranging from $169,000 to $636,000. The franchise fee is set at $30,000, and franchisees are subject to a royalty fee of 6% on gross sales, along with a marketing fee of 1.5%. This structure supports franchisees in building a strong brand presence while maintaining operational efficiency.
Financial Performance
The average annual revenue per Freshii unit is approximately $161,000, with a median revenue of $500,000. Units have reported revenues as low as $75,000 and as high as $1,200,000, showcasing the potential for significant earnings. Freshii units typically achieve breakeven within 12 months, indicating a favorable return on investment for franchisees.
Franchise Growth
Freshii has demonstrated a commitment to growth, with franchised units numbering 121 in 2019, though this number declined to 64 by 2021. The decrease in total units reflects market adjustments, yet it highlights the brand's focus on optimizing existing locations rather than rapid expansion. This strategic approach allows for better support and resources for current franchisees.
Market Entry Requirements
To qualify for a Freshii franchise, prospective franchisees must possess a net worth between $500,000 and $1,500,000. Additionally, having cash readily available in the range of $169,000 to $636,000 is essential for covering initial expenses and ensuring a smooth launch. These requirements help ensure that franchisees are financially prepared to navigate the challenges of business ownership.
Operational Support
Freshii provides extensive operational support to its franchisees, including training programs and ongoing assistance in marketing and management. This support system is designed to help franchisees maximize their profitability and navigate the complexities of running a food service business. The focus on collaboration fosters a strong franchise community, enhancing overall success rates.
Company Vision
Freshii's vision is to inspire healthier communities by providing fresh, nutritious food options that cater to diverse dietary needs. The brand emphasizes sustainability and wellness, aiming to make healthy eating accessible and enjoyable. This vision not only drives product innovation but also aligns with consumer trends towards healthier lifestyles, positioning Freshii for continued relevance in the marketplace.
Frequently Asked Questions
The initial investment for a Freshii franchise ranges from $169,000 to $636,000, which includes the franchise fee and other startup costs.