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Motto Mortgage Franchise ProfileReal Estate Franchises > Residential Brokerage |
What Are the Initial Investment Requirements for a Motto Mortgage Franchise?
To open a Motto Mortgage franchise, you should expect an initial investment ranging from $60,500 to $89,550. This includes a franchise fee of $35,000. Additionally, you will need to have a net worth between $25,000 and $150,000. It's important to ensure you have sufficient cash available to cover the initial costs as well as ongoing operational expenses.
What Are the Ongoing Fees Associated with a Motto Mortgage Franchise?
Motto Mortgage franchisees are required to pay a royalty fee of 6% on their revenue, along with a marketing fee of 2%. These fees are essential for maintaining brand presence and supporting national marketing initiatives. It’s crucial to factor these ongoing costs into your financial planning to ensure sustainable profitability.
What Is the Average Revenue Potential for a Motto Mortgage Franchise?
The average annual revenue per unit for a Motto Mortgage franchise is reported to be around $1,000,000, with a range from $1,250 to $1,200,000. Understanding this revenue potential can help you evaluate the financial viability of the franchise and set realistic performance goals for your business.
How Quickly Can You Expect to Break Even with a Motto Mortgage Franchise?
Motto Mortgage franchisees can expect to break even within approximately 12 months. This rapid payback period can be appealing to potential investors, as it indicates a relatively quick return on investment. However, it's essential to manage your expenses effectively during this time to achieve your financial goals.
Motto Mortgage 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:
Motto Mortgage Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 146 | 192 | 234 |
| Net Change YoY | 46 | 42 | |
| Franchised Units | 146 | 192 | 234 |
| Net Change YoY | 46 | 42 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Motto Mortgage franchise offers a low initial investment range, with costs between $60,500 and $89,550. This investment includes a franchise fee of $35,000, making it accessible for aspiring entrepreneurs looking to enter the mortgage industry.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting national marketing efforts that drive customer engagement and growth.
Revenue Potential
The average annual revenue per unit stands at $13,377, with a median revenue of $1,000,000. The franchise has demonstrated significant revenue potential, with units generating between $1,250 and $1,200,000 annually, catering to a diverse clientele.
Breakeven and Payback
Franchisees can expect a breakeven time of approximately 12 months, with an investment payback period also around 12 months. This rapid return on investment is appealing for those looking to achieve financial stability quickly.
Growth Trajectory
Motto Mortgage has shown consistent growth, increasing from 146 franchised units in 2021 to 234 in 2023. This upward trend highlights the brand's expanding market presence and the increasing interest from potential franchisees.
Operating Expenses
Estimated annual operating expenses range from $16,500 to $33,300. Key expenses include real estate costs, local advertising, and professional fees, which franchisees must manage effectively to optimize profitability within the business model.
Frequently Asked Questions
The initial investment for a Motto Mortgage franchise ranges from $60,500 to $89,550, which includes a franchise fee of $35,000.