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Let's YO! Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for a Let's YO! Franchise?
To become a Let's YO! franchisee, you will need to prepare for an initial investment ranging from $339,000 to $464,000. This includes a franchise fee that can vary between $5,000 and $31,000, alongside other startup costs. It's essential to have cash reserves of $60,000 to $231,550 and a net worth of $100,000 to $300,000 to meet the financial prerequisites for ownership.
What Are the Ongoing Fees Associated with Let's YO! Franchise?
As a Let's YO! franchisee, you will be required to pay a royalty fee of 6% on your gross sales, as well as a marketing fee of 1%. These ongoing fees are critical for maintaining brand presence and support, ensuring your franchise benefits from collective marketing efforts and operational guidance from the franchisor.
What is the Financial Performance of a Let's YO! Franchise?
The average annual revenue for a Let's YO! franchise unit is approximately $178,099, with a median revenue of $490,060. The revenue can vary significantly, with the lowest annual revenue reported at $411,607 and the highest reaching $1,975,183. Understanding these financial metrics can help you gauge potential profitability and make informed investment decisions.
How Quickly Can You Expect to Break Even with a Let's YO! Franchise?
Franchisees of Let's YO! can anticipate a breakeven period of around 12 months. This quick return on investment is appealing for many entrepreneurs, as it allows for a faster transition into profitability. Additionally, the investment payback timeframe aligns with the breakeven period, making it a potentially lucrative opportunity for new franchise owners.
Let's YO! 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:
Let's YO! Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 218 | 152 | 121 |
| Net Change YoY | -66 | -31 | |
| Franchised Units | 210 | 147 | 116 |
| Net Change YoY | -63 | -31 | |
| Corporate Units | 8 | 5 | 5 |
| Net Change YoY | -3 | 0 |
Investment Overview
The Let's YO! franchise offers a compelling investment opportunity with an initial investment range of $339,000 to $464,000. The franchise fee varies between $5,000 and $31,000, while ongoing royalties are set at 6% of gross sales. Franchisees are also required to contribute 1% towards marketing efforts, ensuring brand visibility and support.
Financial Performance
Average annual revenue for Let's YO! units stands at $178,099, with a median revenue of $490,060. Units have shown a wide revenue range, from $411,607 to as high as $1,975,183, indicating strong potential for profitability. The breakeven period is estimated at just 12 months, highlighting the franchise's quick return on investment.
Franchise Growth
Since its inception, Let's YO! has seen a decline in its number of franchised units, from 210 in 2016 to 116 in 2018. This trend suggests a need for strategic evaluation of market conditions and franchisee support to stabilize and boost growth in the coming years.
Required Financials
Prospective franchisees should have a net worth between $100,000 and $300,000, along with liquid cash requirements ranging from $60,000 to $231,550. These financial prerequisites ensure that franchisees are adequately prepared to manage their business and navigate initial operating costs.
Operating Expenses
While detailed operating expenses are not fully specified, marketing and advertising costs are estimated at $1,800 annually. Understanding the full scope of running expenses is crucial for franchisees to accurately forecast profitability and manage cash flow effectively.
Company Background
Let's YO! is a dynamic franchise chain known for its innovative offerings in the food service sector. With a focus on quality and customer experience, the brand has established itself in the market, aiming to provide franchisees with a supportive environment for growth and success.
Frequently Asked Questions
The initial investment for a Let's YO! franchise ranges from $339,000 to $464,000, which includes the franchise fee and other startup costs.