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Lil' Kickers Franchise ProfileChildren’s Franchises > Children's Fitness |
What Are the Initial Investment Requirements for a Lil' Kickers Franchise?
To start a Lil' Kickers franchise, you will need to consider an initial investment that ranges from $20,050 to $59,990. This includes a franchise fee of $25,000. It's important to have cash available between $30,550 and $59,990, alongside a net worth requirement of $100,000 to $300,000. Understanding these financial commitments is crucial as you plan your entry into the franchise system.
What Are the Ongoing Fees Associated with a Lil' Kickers Franchise?
Lil' Kickers franchisees are required to pay a royalty fee of 9% on gross sales and a marketing fee of 2%. These fees contribute to the overall operational costs and marketing efforts that help promote the brand. Being aware of these ongoing expenses will help you better manage your budget and financial projections as you operate your business.
What Is the Average Revenue Potential for a Lil' Kickers Franchise?
The average annual revenue for a Lil' Kickers franchise unit is approximately $656,490, with the lowest recorded revenue at $2,000 and the highest at nearly $2.95 million. This wide range indicates varying performance levels among franchise locations, influenced by factors such as market demand, location, and management practices. Understanding this revenue potential can help you set realistic financial goals for your franchise.
How Quickly Can You Expect to Break Even with a Lil' Kickers Franchise?
Franchisees can expect to break even within 12 months of operation. This quick payback period is an attractive feature for potential investors, suggesting that with effective management and marketing strategies, you can recoup your initial investment relatively fast. Keeping a close eye on expenses and revenue during the early stages will be key to achieving this milestone.
Lil' Kickers 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:
Lil' Kickers 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 | 83 | 77 | 79 |
| Net Change YoY | -6 | 2 | |
| Franchised Units | 77 | 71 | 73 |
| Net Change YoY | -6 | 2 | |
| Corporate Units | 6 | 6 | 6 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Lil' Kickers franchise offers a low initial investment range from $20,050 to $59,990, making it accessible for aspiring entrepreneurs. The franchise fee is set at $25,000, with ongoing royalty and marketing fees of 9% and 2%, respectively. Potential franchisees should have liquid cash available between $30,550 and $59,990, and a net worth requirement of $100,000 to $300,000 to ensure financial stability.
Revenue Potential
Lil' Kickers franchises show promising revenue potential with an average annual revenue of $656,490 per unit. The highest reported annual revenue reaches an impressive $2,949,989, while the lowest stands at $2,000. This range highlights the scalability and varying performance levels within the franchise, providing opportunities for growth and profitability.
Breakeven and Payback
Franchisees can expect a breakeven time of just 12 months, allowing for a quick recovery of the initial investment. The investment payback period is also 12 months, indicating that franchisees can start reinvesting in their business or personal finances relatively soon after opening.
Franchise Growth
The Lil' Kickers franchise has demonstrated stability in its growth, with 77 franchised units in 2020, followed by 71 in 2021 and 73 in 2022. This consistent performance suggests a resilient business model, and the presence of 6 corporate-owned units indicates a solid foundation of support from the franchisor.
Financial Performance
The average profit and loss metrics for Lil' Kickers show a gross profit margin of 69.3%, with average operating expenses of $214,373, approximately 32.7% of revenue. This strong margin reflects effective cost management and operational efficiency, making it a viable option for potential franchisees seeking a profitable investment.
Operational Insights
Lil' Kickers franchises incur various operating expenses, including salaries, marketing services, and maintenance costs. The largest expense is operating salaries and wages, totaling $136,513 annually. Understanding these expenses is crucial for franchisees to effectively manage their operations and maximize profitability.
Frequently Asked Questions
The initial investment for a Lil' Kickers franchise ranges from $20,050 to $59,990, which includes the franchise fee of $25,000.