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Kuk Sool Won Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a Kuk Sool Won Franchise?
To open a Kuk Sool Won franchise, you need to consider a range of initial investment costs. The franchise fee is $20,000, and the total initial investment can range from $2,895 to $70,800. Additionally, you will need to have cash on hand between $25,045 and $70,800, as well as a net worth of $100,000 to $300,000. These figures help ensure that you are financially prepared to launch and sustain your franchise.
What Are the Ongoing Fees Associated with a Kuk Sool Won Franchise?
Owning a Kuk Sool Won franchise comes with ongoing financial commitments. Franchisees are required to pay a royalty fee of 5% on gross sales and a marketing fee of 1%. These fees contribute to the overall brand support and marketing efforts that help drive customer engagement and growth. Understanding these ongoing costs is crucial for maintaining profitability over time.
What Is the Average Revenue Potential for a Kuk Sool Won Franchise?
Kuk Sool Won franchises have shown promising revenue potential. The average annual revenue per unit is approximately $78,905, with a median figure matching that amount. However, revenue can vary significantly, with the lowest reported annual revenue at $25,535 and the highest at $78,905. This variability emphasizes the importance of location and operational effectiveness in achieving financial success.
What Is the Expected Breakeven and Payback Period for a Kuk Sool Won Franchise?
Franchisees can expect a breakeven time of about 12 months, which is relatively quick in the franchise industry. Additionally, the investment payback period is estimated to be around 24 months. These timelines are encouraging for potential franchisees, indicating that with effective management and marketing, they can recover their initial investment and start generating profits within a reasonable timeframe.
Kuk Sool Won 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:
Kuk Sool Won 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 | 100 | 95 | 91 |
| Net Change YoY | -5 | -4 | |
| Franchised Units | 100 | 95 | 91 |
| Net Change YoY | -5 | -4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Kuk Sool Won franchise presents a range of investment options, with an initial investment varying from $2,895 to $70,800. The franchise fee is set at $20,000, complemented by a royalty fee of 5% on gross sales and a marketing fee of 1%. Prospective franchisees should be prepared to have liquid capital between $25,045 and $70,800, along with a net worth of $100,000 to $300,000 to ensure financial stability during the startup phase.
Financial Performance
On average, Kuk Sool Won franchise units generate annual revenues of approximately $78,905. The financial metrics indicate a cost of goods sold at 67.7%, leading to a gross profit margin of 32.4%. With operating expenses around $15,000 annually, franchisees can expect an EBITDA of about $10,535, translating to a solid return on investment potential.
Breakeven and Payback
The Kuk Sool Won franchise offers a relatively quick breakeven period of 12 months, allowing franchisees to recoup their initial investments efficiently. The investment payback timeline is estimated at 24 months, which is favorable for those looking to achieve profitability within a reasonable timeframe.
Franchise Growth
As of 2022, Kuk Sool Won has seen a decline in the number of franchised units, dropping from 100 in 2020 to 91 in 2022. This trend highlights the importance of strategic planning and market adaptation for current and prospective franchisees to ensure sustainable growth in a competitive landscape.
Operational Insights
Franchisees should be aware of the average running expenses, which total between $45,100 and $45,600 annually. Key expenses include rent at approximately $9,600, utilities at $3,000, and management salaries around $24,000. Understanding these operational costs is crucial for effective budgeting and financial management.
Brand Mission
Kuk Sool Won is dedicated to promoting the traditional Korean martial art of Kuk Sool, focusing on discipline, respect, and personal development. The brand aims to create a positive impact in the community by fostering a supportive environment where students can learn valuable life skills through martial arts training, enhancing both physical and mental well-being.
Frequently Asked Questions
The initial investment for a Kuk Sool Won franchise ranges from $2,895 to $70,800, including a franchise fee of $20,000.