|
IKOR Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What is the Initial Investment for an IKOR Franchise?
To open an IKOR franchise, you will need to prepare for an initial investment ranging from $89,237.50 to $145,490.50. This includes a franchise fee of $37,500. It's essential to have sufficient cash on hand, as the cash required falls within the same range. Additionally, potential franchisees should be aware of the net worth requirement, which ranges from $500,000 to $1,000,000.
What are the Ongoing Fees for an IKOR Franchise?
Franchisees of IKOR are responsible for ongoing fees that include an 8% royalty fee on gross sales and a 1% marketing fee. These fees contribute to the overall operational budget and support the brand’s marketing efforts. It's crucial to factor these costs into your financial planning to ensure your franchise remains profitable.
What is the Average Revenue Potential for IKOR Franchisees?
IKOR franchisees can expect an average annual revenue of approximately $12,267 per unit. However, revenues can vary significantly, with the highest reported annual revenue reaching up to $1,000,000. Understanding these revenue metrics can help you assess the potential return on investment and gauge the financial viability of the franchise opportunity.
How Quickly Can You Expect to Break Even with an IKOR Franchise?
IKOR franchises have a breakeven time of about 12 months, which means that franchisees can expect to recover their initial investment within the first year of operation. This relatively quick payback period is an attractive feature for aspiring entrepreneurs looking to enter the franchise market with a manageable risk profile.
IKOR 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:
IKOR 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 | 12 | 45 | 66 |
| Net Change YoY | 33 | 21 | |
| Franchised Units | 12 | 45 | 66 |
| Net Change YoY | 33 | 21 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Investment Overview
The IKOR franchise offers a low to moderate initial investment range of $89,237.50 to $145,490.50. The initial franchise fee is set at $37,500, with ongoing royalty and marketing fees of 8% and 1%, respectively. This investment structure is designed to provide aspiring franchisees with a clear financial pathway to ownership while ensuring ongoing support from the franchisor.
Revenue Potential
Franchisees can expect an average annual revenue of $12,267 per unit, with the potential for revenues to reach up to $1,000,000. The consistent revenue figures highlight the brand's stability and market presence, making it a viable option for those looking to enter the franchise market.
Financial Requirements
To qualify for an IKOR franchise, potential franchisees must demonstrate a net worth between $500,000 and $1,000,000. This requirement ensures that franchisees have the necessary financial backing to sustain operations and invest in their business for growth.
Breakeven and Payback Period
Franchisees can anticipate a breakeven time of approximately 12 months, with an investment payback period also projected at 12 months. This quick return on investment is attractive for entrepreneurs seeking a profitable franchise opportunity.
Franchise Growth
Since its inception, the IKOR franchise has shown significant growth, expanding from 12 units in 2015 to 66 units by 2017. This rapid increase in franchised units reflects the brand's appeal and the successful execution of its business model, providing a strong foundation for future expansion.
Operational Expenses
Average annual running expenses for an IKOR franchise range from $89,237.50 to $145,490.50, covering utilities, business licenses, professional fees, and additional funds. Understanding these expenses is crucial for franchisees to manage their budgets effectively and ensure financial health.
Frequently Asked Questions
The initial investment for an IKOR franchise ranges from $89,237.50 to $145,490.50, which includes the franchise fee and other startup costs.