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Liquid Capital Franchise ProfileConsultant & Business Brokers > Franchise Consulting |
What Are the Initial Investment Requirements for a Liquid Capital Franchise?
To open a Liquid Capital franchise, you'll need to prepare for an initial investment ranging from $46,800 to $84,500. This includes a franchise fee of $40,000. It's important to ensure you have sufficient cash on hand, as you will need between $46,800 and $84,500. Additionally, a net worth of $150,000 to $500,000 is required to qualify for this franchise opportunity. Understanding these financial commitments will help you assess your readiness to embark on this entrepreneurial journey.
What Ongoing Fees Should You Expect as a Liquid Capital Franchisee?
As a Liquid Capital franchisee, you will be responsible for ongoing fees, including an 8% royalty fee on gross revenue and a 10% marketing fee. These fees are essential for maintaining brand standards and supporting marketing initiatives that drive customer engagement. It's crucial to factor these costs into your financial planning to ensure your franchise remains profitable while contributing to the overall success of the brand.
What Is the Average Revenue Potential for a Liquid Capital Franchise?
The average annual revenue for a Liquid Capital franchise unit is approximately $34,300, with the potential for significantly higher earnings. While the lowest recorded annual revenue is also $34,300, the highest can reach up to $1,000,000. This wide revenue range highlights the potential for growth and success, depending on factors such as location, management, and market conditions. Understanding these figures can help you set realistic financial goals for your franchise.
How Quickly Can You Expect to Break Even with a Liquid Capital Franchise?
Liquid Capital franchisees can anticipate a breakeven time of around 12 months. This means that within a year of operation, you could potentially recover your initial investment. Additionally, the investment payback period is also estimated at 12 months, making this franchise an attractive option for those looking for relatively quick returns. Efficient operations and effective marketing strategies will be key to achieving this financial milestone.
Liquid Capital 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:
Liquid Capital Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2014 | 2015 | 2016 |
|---|---|---|---|
| Total Units | 45 | 50 | 50 |
| Net Change YoY | 5 | 0 | |
| Franchised Units | 44 | 49 | 49 |
| Net Change YoY | 5 | 0 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Liquid Capital franchise offers a low to moderate initial investment range, with costs starting at $46,800 and going up to $84,500. This includes a franchise fee of $40,000, making it accessible for aspiring entrepreneurs looking to enter the franchise market without a prohibitive financial barrier.
Royalty and Marketing Fees
Franchisees are required to pay an 8% royalty fee based on gross sales, along with a 10% marketing fee. These fees contribute to the ongoing support and brand promotion that Liquid Capital provides, ensuring franchisees benefit from a well-recognized brand and effective marketing strategies.
Financial Performance
On average, each Liquid Capital unit generates annual revenue of $34,300, with a breakeven time of just 12 months. This swift return on investment highlights the potential profitability of the franchise, making it an attractive option for new business owners.
Franchise Growth
Since its inception, Liquid Capital has seen steady growth in the number of franchised units, starting with 44 in 2014 and increasing to 49 by 2016. This growth trajectory indicates a solid demand for the franchise and a supportive network for franchisees.
Average Running Expenses
Franchisees should anticipate annual running expenses between $46,800 and $84,500, encompassing various costs such as office supplies, lease, and insurance. Understanding these expenses is crucial for effective budgeting and financial planning.
Corporate Structure
Liquid Capital operates under a well-defined corporate structure, ensuring franchisees receive comprehensive support and resources. The company maintains a single corporate unit while expanding its network of franchised locations, fostering a strong community among franchise owners.
Frequently Asked Questions
The initial investment for a Liquid Capital franchise ranges from $46,800 to $84,500, which includes the franchise fee and other startup costs.