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Guardsman FurniturePro Franchise ProfileHome Based Franchises > Home Repair Services |
Investment Overview for Guardsman FurniturePro Franchise
The initial investment for a Guardsman FurniturePro franchise ranges from $19,500 to $69,000, with a franchise fee of $15,000. Potential franchisees should be prepared for ongoing costs, including a 4% royalty fee and a 3% marketing fee. To qualify, you’ll need a net worth between $100,000 and $150,000 and liquid cash available for startup costs.
Financial Performance Insights
Average annual revenue per unit for Guardsman FurniturePro is reported at approximately $413,000, with a median annual revenue of $31,517. The financial performance shows a range of annual revenues from as low as $50,000 to as high as $200,000. Notably, franchisees can expect to break even within 24 months, making it a potentially lucrative investment for those who manage their operations effectively.
Running Expenses Breakdown
Franchisees should anticipate annual running expenses between $30,300 and $41,700. Key expenses include rent and utilities, which can range from $3,000 to $4,500, and management salaries that typically fall between $18,000 and $22,000. Understanding these costs is crucial for maintaining profitability and ensuring smooth operations.
Growth and Expansion Potential
Since its inception, Guardsman FurniturePro has shown steady growth in franchised units, increasing from 60 units in 2015 to 76 units by 2017. This trend indicates a growing brand presence and market acceptance. For aspiring franchisees, this growth trajectory presents an opportunity to join a brand with a solid foundation and potential for further expansion in the furniture restoration market.
Guardsman FurniturePro 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:
Guardsman FurniturePro Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 60 | 65 | 76 |
| Net Change YoY | 5 | 11 | |
| Franchised Units | 60 | 65 | 76 |
| Net Change YoY | 5 | 11 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Guardsman FurniturePro franchise offers an initial investment range between $19,500 and $69,000, with a franchise fee of $15,000. This makes it accessible for aspiring entrepreneurs looking to enter the furniture retail market. Franchisees should also be prepared for ongoing costs, including a 4% royalty fee and a 3% marketing fee, which are standard in the industry.
Financial Performance
Each Guardsman FurniturePro unit generates an average annual revenue of $413,000, with a median revenue of $31,517. The lowest reported annual revenue is $50,000, while the highest is $200,000. This range illustrates the potential for profitability and the variability based on location and management effectiveness.
Breakeven and Payback
Franchisees can expect to reach breakeven within 24 months, which is a reasonable timeframe for many retail franchises. Additionally, the investment payback period is also projected at 24 months, offering a clear timeline for recovering initial investments.
Franchise Growth
Since its inception, the Guardsman FurniturePro franchise has shown steady growth. In 2015, there were 60 franchised units, which increased to 76 by 2017. This upward trajectory indicates a growing brand presence and potential for future expansion in the furniture retail sector.
Operational Expenses
Average annual running expenses for a Guardsman FurniturePro franchise range from $30,300 to $41,700. Key expenses include rent, utilities, marketing, and salaries. Understanding these costs is crucial for franchisees to manage cash flow effectively and maintain profitability.
Corporate Structure
Guardsman FurniturePro operates as a franchise model, with no company-owned units reported from 2015 to 2017. This structure allows franchisees to benefit from the brand’s support while maintaining operational independence, fostering an entrepreneurial spirit within the franchise network.
Frequently Asked Questions
The initial investment for a Guardsman FurniturePro franchise ranges from $19,500 to $69,000, which includes a franchise fee of $15,000.