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Hissho Franchise ProfileRestaurant Franchises > Specialty Cuisine |
What Are the Initial Investment Requirements for a Hissho Franchise?
To open a Hissho franchise, you will need to prepare for an initial investment that ranges from $25,550 to $128,750. This includes a franchise fee of $6,300. It's essential to have cash readily available within this range, along with a net worth requirement between $250,000 and $500,000. Understanding these financial commitments is crucial for aspiring franchisees as they assess their readiness to join the Hissho brand.
What Are the Ongoing Fees Associated with a Hissho Franchise?
Hissho franchisees are subject to ongoing fees that include a royalty fee of 10% of gross sales and a marketing fee of 2%. These fees are vital for maintaining brand standards and supporting national marketing initiatives. Being aware of these ongoing financial obligations is important for franchisees to effectively manage their cash flow and ensure profitability in their operations.
What Is the Average Revenue Potential for a Hissho Franchise?
The average annual revenue per unit for a Hissho franchise is reported at $29,585,068, with a median annual revenue of $14,384. The revenue can vary significantly, with the lowest annual revenue recorded at $150,000 and the highest at $29,585,068. This potential for high revenue underscores the opportunity for franchisees to achieve substantial financial success, provided they effectively manage their operations and market presence.
What Is the Typical Breakeven and Investment Payback Period for Hissho Franchisees?
Hissho franchisees can expect to reach breakeven within approximately 12 months of opening. The investment payback period is estimated at 24 months, which indicates a relatively quick return on investment compared to other franchise models. This timeline can be appealing for potential franchisees, as it reflects the brand's operational efficiency and market demand. Understanding these metrics can help franchisees set realistic financial goals and strategies for their business.
Hissho 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:
Hissho 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 | 1716 | 1824 | 1926 |
| Net Change YoY | 108 | 102 | |
| Franchised Units | 1468 | 1704 | 1852 |
| Net Change YoY | 236 | 148 | |
| Corporate Units | 248 | 120 | 74 |
| Net Change YoY | -128 | -46 |
Initial Investment
The Hissho franchise offers a flexible initial investment ranging from $25,550 to $128,750, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $6,300, which is a key component of the overall investment. This diverse investment structure allows individuals with varying financial capacities to consider entering the franchise market.
Revenue Potential
Hissho franchises demonstrate significant revenue potential, with average annual revenue per unit reaching approximately $29,585,068. The lowest reported annual revenue is $150,000, while the highest peaks at an impressive $29,585,068. This wide range highlights the opportunity for franchisees to achieve substantial financial success, depending on their operational efficiency and market conditions.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 10% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall support provided by Hissho, including brand development and marketing initiatives. Understanding these ongoing costs is crucial for franchisees to accurately project their profitability and budget for operational expenses.
Breakeven and Payback Period
The average breakeven time for Hissho franchisees is estimated at 12 months, with an investment payback period of approximately 24 months. This relatively quick return on investment is appealing to potential franchisees, as it indicates a strong potential for profitability and financial recovery within the first two years of operation.
Franchise Growth
Hissho has shown consistent growth in its franchised units, increasing from 1,468 in 2020 to 1,852 in 2022. This upward trend indicates a strong market presence and demand for Hissho’s offerings. The growth of franchised units suggests that the brand is effectively expanding its footprint, providing franchisees with a promising opportunity for success.
Corporate Structure
Hissho operates a mix of franchised and corporate units, with a notable decrease in corporate units from 248 in 2020 to 74 in 2022. This shift emphasizes the brand's focus on franchising as a primary growth strategy. Understanding the corporate structure can help franchisees gauge the level of support and resources available to them as they embark on their business journey.
Frequently Asked Questions
The initial investment for a Hissho franchise ranges from $25,550 to $128,750, which includes the franchise fee of $6,300 and other startup costs.