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J.D. Byrider Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a J.D. Byrider Franchise?
To open a J.D. Byrider franchise, you will need to prepare for a total initial investment ranging from $814,750 to $1,437,500. This includes a franchise fee of $60,000. Additionally, you must have cash reserves between $650,000 and $1,000,000 and a net worth of $1,000,000 to $7,000,000. Understanding these financial commitments is crucial before embarking on your franchise journey.
What Are the Financial Performance Metrics for J.D. Byrider Franchisees?
J.D. Byrider franchisees can expect an average annual revenue of approximately $6,320,794 per unit, with a median revenue reflecting the same figure. Revenue can vary significantly, with the lowest annual revenue being $1,379,172 and the highest reaching $16,377,405. The gross profit margin stands at 34.75%, with operating expenses accounting for 23.33% of revenue. These metrics can help you assess the potential profitability of this franchise model.
How Long Does It Take to Break Even with a J.D. Byrider Franchise?
Franchisees can anticipate a breakeven period of around 18 months. This timeframe is essential for planning your financial strategy, as it indicates when you can expect to recover your initial investment. Additionally, the average investment payback period is approximately 22 months, providing a clear timeline for your return on investment.
What Is the Franchise Structure of J.D. Byrider?
As of recent years, J.D. Byrider has maintained a solid presence with a total of 145 units in operation by 2021, consisting of 113 franchised units and 32 corporate-owned locations. This structure highlights a balanced approach to franchise development, allowing for both franchised and company-operated units to thrive under the brand. Understanding this structure can inform your decision-making process regarding franchise ownership.
J.D. Byrider 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:
J.D. Byrider Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 147 | 143 | 145 |
| Net Change YoY | -4 | 2 | |
| Franchised Units | 116 | 112 | 113 |
| Net Change YoY | -4 | 1 | |
| Corporate Units | 31 | 31 | 32 |
| Net Change YoY | 0 | 1 |
Investment Overview
The initial investment for a J.D. Byrider franchise ranges from $814,750 to $1,437,500, with a franchise fee of $60,000. Franchisees must have cash reserves between $650,000 and $1,000,000, and a net worth of $1,000,000 to $7,000,000. This investment supports the establishment and operation of a successful car dealership and financing business model.
Revenue Potential
J.D. Byrider franchises have demonstrated strong revenue potential, with average annual revenues per unit reaching $6,320,794. The revenue figures range significantly, with the lowest annual revenue reported at $1,379,172 and the highest at $16,377,405. This wide range indicates the variability in performance based on location and management practices.
Operational Costs
Franchisees can expect to manage various operational costs, including an average cost of goods sold (COGS) at $4,124,570, which accounts for 65.25% of revenue. Operating expenses total approximately $1,474,503, representing 23.33% of revenue. Understanding these costs is crucial for effective financial management and profitability.
Royalty and Marketing Fees
J.D. Byrider charges a royalty fee of 3.95% of gross sales, alongside a marketing fee of 1%. These fees contribute to the ongoing support and brand development provided by the franchisor, helping franchisees maintain competitive positioning in the marketplace.
Breakeven and Payback Period
Franchisees can expect to break even within approximately 18 months of operation, with an investment payback period estimated at 22 months. These timelines are essential for potential franchisees to evaluate the financial viability and return on investment of their franchise opportunity.
Franchise Growth
As of 2021, J.D. Byrider operates a total of 145 units, comprising 113 franchised units and 32 corporate units. The franchise has shown stability in unit count over the past few years, indicating a solid foundation and potential for future growth within the automotive sales and financing sector.
Frequently Asked Questions
The initial investment for a J.D. Byrider franchise ranges from $814,750 to $1,437,500. This includes the franchise fee, equipment, and other startup costs.