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Hwy 55 Burgers Shakes & Fries Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Hwy 55 Burgers Shakes & Fries Franchise?
The initial investment for a Hwy 55 Burgers Shakes & Fries franchise ranges from $435,855 to $878,555. This includes a franchise fee of $25,000 and requires a cash reserve of $25,000 to $500,000. Potential franchisees should be prepared for ongoing costs, including a 6% royalty fee and a 1% marketing fee, which are essential for maintaining brand presence and operational support.
What are the Financial Performance Metrics for Hwy 55 Burgers Shakes & Fries?
Franchisees can expect an average annual revenue of approximately $1,800,000, with a median revenue of $1,000,000. The lowest annual revenue reported is $561,000, while the highest reaches $1,300,000. The breakeven time is around 18 months, and the investment payback period is estimated at 24 months, making it a potentially lucrative opportunity for dedicated operators.
What are the Average Annual Running Expenses for a Hwy 55 Franchise?
The average running expenses for a Hwy 55 Burgers Shakes & Fries franchise total approximately $435,855 annually. Key expenses include rent ($52,000), utilities ($12,000), and management salaries ($70,000). Other costs, such as advertising and marketing, contribute to operational budgets, making it crucial for franchisees to manage these expenses effectively to optimize profitability.
How Many Units Does Hwy 55 Burgers Shakes & Fries Operate?
As of 2016, Hwy 55 Burgers Shakes & Fries operates a total of 116 units, with 107 of those being franchised. The brand has shown steady growth, increasing from 94 franchised units in 2014 to 107 in 2016. This expansion indicates a solid market presence and potential for further growth in the fast-casual dining segment.
Hwy 55 Burgers Shakes & Fries 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:
Hwy 55 Burgers Shakes & Fries Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2014 | 2015 | 2016 |
|---|---|---|---|
| Total Units | 105 | 111 | 116 |
| Net Change YoY | 6 | 5 | |
| Franchised Units | 94 | 102 | 107 |
| Net Change YoY | 8 | 5 | |
| Corporate Units | 11 | 9 | 9 |
| Net Change YoY | -2 | 0 |
Franchise Overview
Hwy 55 Burgers Shakes & Fries is a fast-casual dining franchise specializing in classic American comfort food, including burgers, shakes, and fries. Founded in 1991, the brand has grown steadily, boasting a loyal customer base and a menu that emphasizes quality ingredients and a nostalgic diner experience. With a focus on community involvement and a family-friendly atmosphere, Hwy 55 aims to provide a unique dining experience that resonates with customers of all ages.
Investment Details
The initial investment for a Hwy 55 franchise ranges from $435,855 to $878,555, making it a moderate option within the fast-casual segment. A franchise fee of $25,000 is required, along with ongoing royalty and marketing fees of 6% and 1%, respectively. Prospective franchisees should have liquid cash of $25,000 to $500,000 and a net worth between $100,000 and $500,000 to qualify for ownership.
Financial Performance
Hwy 55 franchises average annual revenue is approximately $1,800,000, with a median of $1,000,000. Units can see a wide range in performance, with the lowest annual revenue reported at $561,000 and the highest at $1,300,000. The breakeven point is estimated at 18 months, while franchisees can expect to see a return on their investment within 24 months.
Operational Insights
The average running expenses for a Hwy 55 franchise total around $435,855 annually. Key expenses include rent ($52,000), utilities ($12,000), and management salaries ($70,000). Effective cost management is crucial for maintaining profitability, as operating expenses can significantly impact the bottom line. Franchisees are encouraged to monitor these costs closely to optimize financial performance.
Growth Potential
Since its inception, Hwy 55 has shown consistent growth in the number of franchised units, increasing from 94 in 2014 to 107 in 2016. This upward trend indicates a robust demand for the brand and presents a promising opportunity for new franchisees. With ongoing support from the corporate team, franchise owners can leverage established operational systems and marketing strategies to drive business growth.
Community Engagement
Hwy 55 Burgers Shakes & Fries places a strong emphasis on community involvement, encouraging franchisees to engage with local events and organizations. This commitment to community fosters brand loyalty and enhances the overall customer experience. By participating in local initiatives, franchisees not only strengthen their business presence but also contribute positively to their neighborhoods.
Frequently Asked Questions
The total initial investment for a Hwy 55 franchise ranges from $435,855 to $878,555. This includes the franchise fee, equipment, and other startup costs.