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Gecko Hospitality Franchise ProfileBusiness Services Franchises > Staffing |
What Are the Initial Investment Requirements for a Gecko Hospitality Franchise?
To open a Gecko Hospitality franchise, you can expect an initial investment ranging from $58,885 to $84,760. This includes a franchise fee of $40,000. Additionally, you'll need to have liquid cash available within this range and meet a net worth requirement of $300,000 to $1,000,000. It's crucial to ensure you have adequate funds to cover both the startup costs and ongoing operational expenses as you embark on your franchise journey.
What Are the Ongoing Fees for Gecko Hospitality Franchisees?
As a Gecko Hospitality franchisee, you will be responsible for paying ongoing fees that include a royalty fee of 10% on your unit's revenue and a marketing fee of 4%. These fees contribute to the overall brand support, marketing efforts, and operational guidance provided by the franchisor, ensuring that you remain competitive in the hospitality industry while benefiting from the franchise network's resources.
What Is the Average Annual Revenue for a Gecko Hospitality Franchise Unit?
The average annual revenue per unit for a Gecko Hospitality franchise is approximately $165,688, with a median revenue also at $165,688. This revenue potential highlights the opportunity for profitability in the hospitality sector. However, it's important to note that revenue can vary, with the lowest annual revenue reported at $90,000 and the highest reaching $222,454. Understanding these figures can help you set realistic financial goals for your franchise.
What Is the Expected Breakeven Time for a Gecko Hospitality Franchise?
Gecko Hospitality franchisees can anticipate a breakeven time of about 12 months. This means that, on average, you could recover your initial investment within the first year of operations. Coupled with an investment payback period also estimated at 12 months, this timeline indicates a potentially quick return on investment, making it an appealing option for aspiring franchise owners looking to enter the hospitality market.
Gecko Hospitality 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:
Gecko Hospitality 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 | 66 | 67 | 66 |
| Net Change YoY | 1 | -1 | |
| Franchised Units | 66 | 67 | 66 |
| Net Change YoY | 1 | -1 | |
| Corporate Units | 0 | 2 | 2 |
| Net Change YoY | 2 | 0 |
Initial Investment
The Gecko Hospitality franchise requires an initial investment ranging between $58,885 and $84,760. This includes a franchise fee of $40,000, which is part of the overall financial commitment needed to start your business. Aspiring franchisees should be prepared for these costs to ensure they can successfully launch their franchise.
Financial Requirements
To qualify for a Gecko Hospitality franchise, potential franchisees must demonstrate a net worth between $300,000 and $1,000,000. Additionally, a cash requirement of $58,885 to $84,760 is necessary to cover initial expenses and ensure adequate liquidity during the startup phase.
Revenue Potential
Franchisees can expect average annual revenue of approximately $165,688 per unit, with a range from $90,000 to $222,454. This revenue potential underscores the viability of the franchise model, allowing owners to assess their financial goals and performance expectations realistically.
Royalty and Marketing Fees
Gecko Hospitality charges a royalty fee of 10% on gross sales, along with a marketing fee of 4%. These fees contribute to the ongoing support and brand development provided by the franchisor, ensuring franchisees benefit from a strong marketing presence and operational guidance.
Breakeven and Payback Period
The average breakeven time for a Gecko Hospitality franchise is estimated at 12 months. This quick payback period indicates a strong return on investment potential, allowing franchisees to recoup their initial investment swiftly and start generating profit.
Franchise Growth
Since its inception, Gecko Hospitality has maintained a steady growth trajectory. In 2018, there were 66 franchised units, and this number increased to 67 in 2019, demonstrating the brand's stability and appeal within the franchise market. The presence of corporate units further enhances support for franchisees, ensuring a robust operational framework.
Frequently Asked Questions
The initial investment for a Gecko Hospitality franchise ranges from $58,885 to $84,760, which includes a franchise fee of $40,000.