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Mr. Rekey Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Mr. Rekey Franchise?
To open a Mr. Rekey franchise, you need to prepare for an initial investment ranging from $34,000 to $80,800. This includes a franchise fee that varies between $10,000 and $30,000. Additionally, prospective franchisees should have a net worth of $50,000 to $100,000 and ensure they have cash available within the same range to cover startup expenses.
What Are the Ongoing Fees Associated with a Mr. Rekey Franchise?
Franchisees of Mr. Rekey are required to pay a royalty fee of 7.5% on their gross revenue, alongside a marketing fee of 2%. These ongoing fees are crucial for maintaining brand support and marketing efforts, which can significantly impact the overall success and visibility of your franchise unit.
What Is the Average Revenue Potential for a Mr. Rekey Franchise?
The average annual revenue for a Mr. Rekey franchise unit is approximately $740,323, with a median revenue of around $660,323. This revenue potential showcases the business's viability, although it’s essential for franchisees to manage their operating expenses effectively to achieve profitability.
How Quickly Can You Expect to Break Even with a Mr. Rekey Franchise?
Franchisees can typically expect to reach breakeven within about 6 months of opening their Mr. Rekey unit. With an investment payback period of around 12 months, this timeline indicates a relatively quick return on investment, making it an appealing option for aspiring franchise owners.
Mr. Rekey 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:
Mr. Rekey Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2012 | 2013 | 2014 |
|---|---|---|---|
| Total Units | 5 | 56 | 60 |
| Net Change YoY | 51 | 4 | |
| Franchised Units | 0 | 51 | 54 |
| Net Change YoY | 51 | 3 | |
| Corporate Units | 5 | 0 | 0 |
| Net Change YoY | -5 | 0 |
Initial Investment
The Mr. Rekey franchise offers a low initial investment ranging from $34,000 to $80,800, making it accessible for aspiring entrepreneurs. The franchise fee varies between $10,000 and $30,000, providing flexibility depending on the franchisee's chosen package.
Revenue Potential
With an average annual revenue per unit of $740,323 and a median of $660,323, Mr. Rekey presents a strong financial opportunity. The highest reported annual revenue reaches $740,323, indicating the potential for significant earnings in this franchise model.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 6 months of operation. The investment payback period is estimated at 12 months, allowing for a relatively quick return on initial investments compared to other franchise opportunities.
Ongoing Fees
Franchisees are required to pay a royalty fee of 7.5% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall support and brand marketing efforts provided by Mr. Rekey.
Financial Performance
The average operating expenses for Mr. Rekey units total approximately $442,727 annually. While the average EBITDA stands at -$40,716, this highlights the importance of managing costs effectively to achieve profitability.
Growth Track Record
Since its inception, Mr. Rekey has shown promising growth, with 51 franchised units established in 2013, followed by an increase to 54 units in 2014. This upward trend reflects the brand's potential for expansion and success in the franchise market.
Frequently Asked Questions
The initial investment for a Mr. Rekey franchise ranges from $34,000 to $80,800, which includes the franchise fee and other startup costs.