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Great Wraps Grill Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Great Wraps Grill Franchise?
To open a Great Wraps Grill franchise, you should be prepared for a range of initial investment costs. The total investment can vary significantly, with a low end of approximately $159,500 and a high end reaching up to $485,500. This includes a franchise fee of $22,500. Additionally, you will need to have liquid cash available, ranging between $30,000 and $40,000, and a net worth requirement of $300,000 to $500,000 to qualify for ownership.
What Are the Ongoing Fees Associated with a Great Wraps Grill Franchise?
As a franchisee, you will be responsible for ongoing fees that contribute to the overall success of your business. Great Wraps Grill requires a royalty fee of 5.5% of your gross sales, along with a marketing fee of 2%. These fees are essential for maintaining brand visibility and support, ensuring that your franchise benefits from the collective marketing efforts of the franchise network.
What Is the Financial Performance of a Great Wraps Grill Franchise?
Great Wraps Grill franchises have demonstrated promising financial performance, with an average annual revenue per unit of $581,872. The median revenue stands at $562,035, indicating a strong potential for profitability. However, revenue can vary widely, with the lowest reported annual revenue at $140,000 and the highest at $1,068,651. Understanding these figures can help you assess the viability of your investment.
How Quickly Can You Expect to Break Even with a Great Wraps Grill Franchise?
Franchisees can anticipate a breakeven period of around 12 months, which is relatively quick in the restaurant industry. With an investment payback period of approximately 24 months, this timeline suggests that a Great Wraps Grill franchise can become a profitable venture within a reasonable timeframe, allowing you to reinvest in your business and explore further growth opportunities.
Great Wraps Grill 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:
Great Wraps Grill Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 67 | 56 | 45 |
| Net Change YoY | -11 | -11 | |
| Franchised Units | 67 | 56 | 44 |
| Net Change YoY | -11 | -12 | |
| Corporate Units | 0 | 0 | 1 |
| Net Change YoY | 0 | 1 |
Investment Overview
Great Wraps Grill offers a range of initial investment options, with costs ranging from $159,500 to $485,500. The initial franchise fee is set at $22,500, and franchisees are subject to a royalty fee of 5.5% on gross sales, alongside a 2% marketing fee. To get started, prospective franchisees should have a cash reserve of $30,000 to $40,000 and a net worth between $300,000 and $500,000.
Revenue Potential
The average annual revenue per Great Wraps Grill unit is approximately $581,872, with a median annual revenue of $562,035. Revenue can vary significantly, with the lowest reported annual revenue at $140,000 and the highest reaching $1,068,651. This diverse revenue potential highlights the brand's capacity for profitability across different locations.
Operational Efficiency
Great Wraps Grill units typically break even within 12 months, providing a relatively quick return on investment. Franchisees can expect to see their initial investment paid back within 24 months, making it an appealing option for those looking to enter the franchise market with a solid financial outlook.
Franchise Growth
Since its inception, Great Wraps Grill has seen a fluctuating number of franchised units. In 2016, there were 67 units, which decreased to 56 in 2017 and further to 44 in 2018. The brand's focus on strategic growth and operational efficiency is essential for potential franchisees to consider when evaluating their investment.
Financial Insights
The average cost of goods sold (COGS) for Great Wraps Grill is around $285,000, representing 49% of revenue. This results in a gross profit margin of 51%. Operating expenses, including rent, marketing, and salaries, average about $232,000, leading to an EBITDA of $64,872, or 11% of revenue. These figures provide valuable insights into the financial health of the franchise.
Franchise Support
Great Wraps Grill is committed to supporting its franchisees through comprehensive training and ongoing operational assistance. The franchise provides marketing resources, operational guidelines, and a network of experienced franchisees to help new owners navigate the challenges of running a successful business. This support system is crucial for fostering a thriving franchise community.
Frequently Asked Questions
The initial investment for a Great Wraps Grill franchise ranges from $159,500 to $485,500, which includes the franchise fee, equipment, and other startup costs.