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Gracie Barra Franchise ProfileSports Franchises > Sports Coaching |
What is the Initial Investment for a Gracie Barra Franchise?
To start a Gracie Barra franchise, you should prepare for an initial investment ranging from $70,500 to $223,500. This includes a franchise fee of $10,000. Additionally, you will need to have cash reserves of at least $10,000 and a net worth between $300,000 and $1,000,000 to qualify for franchise ownership. Understanding these financial commitments is essential for aspiring franchisees to ensure they can support their business's launch and ongoing operations.
What Are the Ongoing Fees Associated with a Gracie Barra Franchise?
Franchisees of Gracie Barra are required to pay a royalty fee of 10% on their gross revenue, along with a marketing fee of 5%. These ongoing fees are crucial for maintaining brand standards and supporting marketing efforts, which can help drive customer traffic to your location. It’s important to factor these costs into your financial planning to ensure sustainable profitability.
What is the Average Revenue Potential for a Gracie Barra Franchise?
Gracie Barra franchises have shown promising revenue potential, with an average annual revenue of approximately $2,507,413 per unit. However, the revenue can vary significantly, with the lowest reported annual revenue at $15,000 and the highest at $2,507,413. Understanding these figures can help franchisees set realistic financial goals and evaluate the viability of their investment.
How Quickly Can You Expect to Break Even with a Gracie Barra Franchise?
Franchisees can anticipate reaching the breakeven point within approximately 12 months of opening their Gracie Barra location. Furthermore, the investment payback period is estimated at around 24 months. These timelines are vital for potential franchisees to consider when assessing the financial feasibility and planning for their business's growth trajectory.
Gracie Barra 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:
Gracie Barra 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 | 218 | 235 | 266 |
| Net Change YoY | 17 | 31 | |
| Franchised Units | 209 | 226 | 256 |
| Net Change YoY | 17 | 30 | |
| Corporate Units | 9 | 9 | 10 |
| Net Change YoY | 0 | 1 |
Investment Overview
The Gracie Barra franchise offers a range of investment options, with initial costs ranging from $70,500 to $223,500. The franchise fee is set at $10,000, and ongoing royalties are 10% of gross sales, along with a 5% marketing fee. Prospective franchisees should have a minimum cash requirement of $10,000 and a net worth between $300,000 and $1,000,000 to qualify for ownership.
Revenue Potential
Franchisees can expect significant revenue potential, with average annual revenue per unit reported at $2,507,413. The median annual revenue is also impressive at $2,507,413, while the lowest annual revenue recorded is $15,000 and the highest is $2,507,413. This indicates a strong earning capacity for dedicated franchise owners.
Breakeven and Payback
The Gracie Barra franchise demonstrates a favorable financial outlook, with a breakeven period of approximately 12 months. Franchisees can expect to recover their initial investment within about 24 months, making it a potentially lucrative opportunity for those willing to commit to the business model.
Growth Trajectory
The franchise has shown consistent growth, increasing from 209 franchised units in 2020 to 256 units by 2022. This upward trend reflects the brand's expanding presence and popularity in the martial arts community, providing new franchisees with a solid foundation for success.
Corporate Structure
Gracie Barra operates both franchised and corporate units, with a total of 266 units as of 2022. The corporate units provide a benchmark for franchisees, ensuring that the brand maintains high standards and operational consistency across all locations.
Operational Insights
Franchisees should be prepared for various operational expenses, including rent ranging from $18,000 to $60,000 annually, and additional costs for equipment and supplies. Understanding these expenses is crucial for effective financial planning and ensuring long-term profitability within the Gracie Barra franchise system.
Frequently Asked Questions
The initial investment for a Gracie Barra franchise ranges from $70,500 to $223,500, which includes the franchise fee of $10,000 and other startup costs.