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MA Modern Acupuncture Franchise ProfileHealth & Beauty Franchises > Spas |
What Are the Initial Investment Requirements for a Modern Acupuncture Franchise?
To open a Modern Acupuncture franchise, you will need to consider a range of initial investment costs. The total investment can vary from $255,377 to $663,772, which includes a franchise fee of $39,500. Additionally, you should have cash reserves between $75,000 and $115,000 and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is essential for aspiring franchisees to ensure they are prepared for the journey ahead.
What Are the Ongoing Fees Associated with a Modern Acupuncture Franchise?
Owning a Modern Acupuncture franchise comes with ongoing fees that you need to budget for. Franchisees are required to pay a royalty fee of 7% on their revenue, along with a marketing fee of 2%. These fees contribute to the overall support and brand development provided by the franchise, helping to drive customer engagement and business growth. Being aware of these ongoing costs is crucial for maintaining profitability.
What Is the Average Revenue Potential for a Modern Acupuncture Franchise?
The average annual revenue for a Modern Acupuncture unit is approximately $431,429, with a median revenue of $431,428. However, revenue can vary significantly, with the lowest recorded at $206,500 and the highest reaching $2,410,295. This wide range highlights the potential for profitability but also indicates that success may depend on factors such as location, market demand, and operational efficiency.
What Is the Breakeven Timeline for a Modern Acupuncture Franchise?
Franchisees can expect a breakeven time of around 16 months after opening their Modern Acupuncture location. The investment payback period is estimated at 36 months, which means that after this time, franchisees may begin to see a return on their initial investment. Understanding these timelines is key for financial planning and helps franchisees set realistic expectations for their business growth.
MA Modern Acupuncture 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:
MA Modern Acupuncture Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 4 | 36 | 51 |
| Net Change YoY | - | 32 | 15 |
| Franchised Units | 4 | 36 | 51 |
| Net Change YoY | - | 32 | 15 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | - | - | - |
Investment Overview
The Modern Acupuncture franchise presents a range of initial investment options, with costs ranging from $255,377 to $663,772. The franchise fee is set at $39,500, and franchisees are required to maintain a cash reserve between $75,000 and $115,000. This investment structure is designed to accommodate both new and experienced entrepreneurs looking to enter the wellness industry.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $431,429 per unit, with a median revenue closely mirroring this figure. The revenue range varies significantly, from as low as $206,500 to as high as $2,410,295, indicating the potential for substantial earnings depending on location and operational efficiency.
Financial Performance
While the gross profit margin stands at 63.1%, the operating expenses exceed revenue, resulting in an EBITDA of approximately -$335,986. This highlights the importance of effective cost management and operational strategies to achieve profitability within the franchise model.
Franchise Growth
Modern Acupuncture has experienced considerable growth since its inception, expanding from 4 franchised units in 2017 to 51 units by 2019. This rapid expansion reflects the increasing demand for acupuncture services and the brand's ability to attract new franchisees in a competitive market.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 7% on gross sales, in addition to a marketing fee of 2%. These fees contribute to the overall brand development and marketing efforts, aimed at increasing visibility and customer engagement across all franchise locations.
Breakeven and Payback Period
The average breakeven time for a Modern Acupuncture franchise is approximately 16 months, with an investment payback period of around 36 months. These timelines provide potential franchisees with a clear understanding of the expected financial recovery and the timeframe for achieving profitability.
Frequently Asked Questions
The initial investment for a MA Modern Acupuncture franchise ranges from $255,377 to $663,772, which includes the franchise fee and other startup costs.