|
Mighty Dog Roofing Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Mighty Dog Roofing Franchise?
To start a Mighty Dog Roofing franchise, you will need an initial investment ranging from $214,491 to $319,991. This includes a franchise fee of $59,500. It's essential to have cash on hand within this range to cover the startup costs, which may include equipment, supplies, and other operational expenses. Additionally, you should be prepared for ongoing fees, including an 8.5% royalty fee and a 5% marketing fee, which will be vital for your franchise's success and brand visibility.
What are the Financial Performance Metrics for Mighty Dog Roofing?
Mighty Dog Roofing franchises have shown promising financial performance, with an average annual revenue of approximately $1,917,236 per unit. The median annual revenue stands at $600,000, while the highest revenue reported is $3,436,997. Understanding these figures can help you gauge the potential profitability of your investment. Notably, the average breakeven time is around 24 months, with an investment payback period of about 14 months, indicating a relatively quick return on investment for franchisees.
What are the Required Financial Qualifications for Franchisees?
To qualify for a Mighty Dog Roofing franchise, you must have a net worth between $600,000 and $1,000,000. This requirement ensures that franchisees have the financial stability to support their business during the initial phases. Additionally, having liquid capital available for the initial investment is crucial to cover startup costs and to manage ongoing operational expenses effectively.
How Many Mighty Dog Roofing Units are Currently Operating?
The growth of the Mighty Dog Roofing franchise has been significant in recent years. In 2020, there were only 2 franchised units, which increased to 26 in 2021. By 2022, the total units reached 27, with 26 being franchised and 1 corporate-owned unit. This expansion indicates a growing interest in the brand and its potential for success in the roofing industry, making it an attractive option for prospective franchisees.
Mighty Dog Roofing 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:
Mighty Dog Roofing 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 | 2 | 26 | 27 |
| Net Change YoY | 24 | 1 | |
| Franchised Units | 2 | 26 | 26 |
| Net Change YoY | 24 | 0 | |
| Corporate Units | 0 | 0 | 1 |
| Net Change YoY | 0 | 1 |
Investment Overview
The Mighty Dog Roofing franchise offers a low to moderate initial investment range, with costs between $214,491 and $319,991. The franchise fee is set at $59,500, and franchisees can expect an ongoing royalty fee of 8.5% of gross sales, alongside a marketing fee of 5%. This financial structure allows for a clear understanding of the initial and ongoing costs associated with franchise ownership.
Revenue Potential
Franchisees can anticipate significant revenue opportunities, with average annual revenues reaching $1,917,235. The median annual revenue stands at $600,000, while the revenue range varies from $200,000 to as high as $3,436,997. This diverse revenue potential highlights the scalability of the Mighty Dog Roofing business model for aspiring entrepreneurs.
Breakeven and Payback
The breakeven period for a Mighty Dog Roofing franchise is approximately 24 months, providing a reasonable timeline for new franchisees to recoup their initial investment. Moreover, the investment payback period is notably efficient at 14 months, making it an attractive option for those looking to achieve financial stability quickly.
Franchise Growth
Mighty Dog Roofing has demonstrated impressive growth in franchised units, expanding from 2 units in 2020 to 26 units in 2021, and reaching 65 units in 2022. This rapid expansion reflects the brand's increasing popularity and the effectiveness of its franchise model, offering new franchisees a promising opportunity for success.
Financial Performance
The average financial performance metrics reveal a gross profit margin of 46.9%, with total operating expenses averaging $3,572,525. The EBITDA stands at $416,137, representing 21.7% of revenue. These figures provide valuable insights for potential franchisees into the profitability and financial health of the Mighty Dog Roofing franchise.
Corporate Structure
Mighty Dog Roofing operates as a franchise system under a corporate structure that supports both franchised and corporate-owned units. As of 2022, there is one corporate unit, indicating a focus on franchise growth while maintaining a corporate presence to guide and support franchisees. This structure fosters a collaborative environment aimed at mutual success.
Frequently Asked Questions
The initial investment for a Mighty Dog Roofing franchise ranges from $214,491 to $319,991, which includes the franchise fee and other startup costs.