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Moo Thru Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What Are the Initial Investment Requirements for a Moo Thru Franchise?
To open a Moo Thru franchise, you should be prepared for an initial investment ranging from $200,000 to $300,000. This includes a franchise fee of $30,000, which grants you the rights to operate under the Moo Thru brand. Additionally, you will need to have liquid cash available between $50,000 and $70,000 and a net worth of $300,000 to $500,000 to qualify for franchise ownership. These financial requirements are essential to ensure you have the resources to successfully launch and sustain your franchise.
What Are the Ongoing Fees for a Moo Thru Franchise?
As a Moo Thru franchisee, you will be responsible for ongoing fees that include a royalty fee of 5% of your gross sales and a marketing fee of 3%. These fees are critical for maintaining brand standards and supporting marketing efforts that drive customer traffic to your franchise location. Understanding these fees is important for financial planning and ensuring that your franchise remains profitable over time.
What Is the Financial Performance Potential of a Moo Thru Franchise?
Moo Thru franchises have demonstrated strong financial performance, with average annual revenue per unit reported at $200,000 and a median annual revenue of $550,000. The breakeven time is typically around 12 months, meaning you could start seeing a return on your investment relatively quickly. Additionally, the investment payback period is also estimated at 12 months, making it a potentially lucrative venture for new franchisees.
How Many Moo Thru Franchise Units Are Currently Operating?
As of 2023, there are a total of 10 Moo Thru franchise units in operation, with a consistent growth pattern since 2019. The franchise has expanded from 5 units in 2019 to 10 units by 2023, indicating a solid interest in the brand and its offerings. This growth trend suggests that Moo Thru is successfully attracting franchisees and could represent a stable opportunity for aspiring entrepreneurs looking to join a growing franchise system.
Moo Thru 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:
Moo Thru Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Total Units | 5 | 7 | 10 | 10 | 10 |
| Net Change YoY | 2 | 3 | 0 | 0 | |
| Franchised Units | 5 | 7 | 10 | ||
| Net Change YoY | 2 | 3 | |||
| Corporate Units | 5 | 7 | 10 | ||
| Net Change YoY | 2 | 3 |
Investment Overview
The Moo Thru franchise offers a compelling investment opportunity with an initial investment ranging from $200,000 to $300,000. The franchise fee is set at $30,000, with ongoing royalty and marketing fees of 5% and 3% respectively. Prospective franchisees should have a cash reserve of $50,000 to $70,000 and a net worth between $300,000 and $500,000 to qualify for ownership.
Revenue Potential
Moo Thru franchises demonstrate strong revenue potential, with average annual revenue per unit reported at $200,000. The median annual revenue is significantly higher, reaching $550,000. While the revenue can vary, the lowest recorded annual revenue is $30,000, and the highest stands at $450,000, showcasing the business's scalability.
Breakeven and Payback Period
Franchisees can expect a breakeven period of approximately 12 months, indicating a relatively quick return on investment. This payback timeline aligns with the average performance metrics, allowing new franchisees to regain their initial investment swiftly and begin generating profit.
Franchise Growth
Moo Thru has shown consistent growth in its franchised units over the years. From 2019 to 2023, the number of franchised units increased from 5 to 10, reflecting a steady demand for the brand. The company also operates corporate units, which have expanded from 5 in 2021 to 10 in 2023, indicating a robust corporate presence alongside franchise operations.
Operational Insights
Understanding the operational costs is crucial for franchise success. Typical expenses include rent, utilities, marketing, and salaries, which collectively contribute to the overall financial health of the franchise. Keeping a close eye on these expenses will help franchisees maintain profitability and optimize their operations.
Franchise Support
Moo Thru provides comprehensive support to its franchisees, including training, marketing assistance, and operational guidance. This support is designed to help franchisees navigate the initial setup and ongoing management of their units, ensuring they have the tools necessary to succeed in a competitive market.
Frequently Asked Questions
The initial investment for a Moo Thru franchise ranges from $200,000 to $300,000, which includes the franchise fee of $30,000.