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Mr. Transmission Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a Mr. Transmission Franchise?
To open a Mr. Transmission franchise, you will need to prepare for an initial investment ranging from $208,613 to $301,767. This includes a franchise fee of $40,000, along with other startup costs. It's crucial to have cash available between $208,613 and $265,873, and your net worth should be between $500,000 and $1,000,000 to qualify for ownership. Understanding these financial commitments is essential for aspiring franchisees.
What Are the Ongoing Fees Associated with a Mr. Transmission Franchise?
As a Mr. Transmission franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your gross sales and a marketing fee of 1%. These fees help support the brand's marketing efforts and operational support, ensuring that you have the resources needed to succeed. It's important to factor these ongoing costs into your financial planning to maintain profitability.
What Is the Average Revenue Potential for Mr. Transmission Franchise Units?
Mr. Transmission franchises have demonstrated strong revenue potential, with an average annual revenue of approximately $721,835 per unit. The median annual revenue is around $612,963, while some units have reported revenues as low as $137,951 and as high as $1,957,132. Understanding these revenue figures can help you assess the financial viability of opening a franchise and set realistic expectations for your business.
How Long Does It Take to Break Even with a Mr. Transmission Franchise?
Franchisees can expect to reach their breakeven point in about 24 months, with an investment payback period of approximately 14 months. These timelines can vary based on factors such as location, management efficiency, and market conditions. Knowing the breakeven timeframe is essential for planning your financial strategy and ensuring that you have adequate resources during the early stages of your franchise journey.
Mr. Transmission 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. Transmission 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 |
|---|---|---|---|
| Total Units | 116 | 121 | 118 |
| Net Change YoY | 5 | -3 | |
| Franchised Units | 114 | 119 | 116 |
| Net Change YoY | 5 | -3 | |
| Corporate Units | 2 | 2 | 2 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Mr. Transmission franchise offers a range of initial investment options, with costs ranging from $208,613 to $301,767. The initial franchise fee is set at $40,000, and franchisees should prepare for ongoing royalty fees of 7% and a marketing fee of 1%. A cash reserve of $208,613 to $265,873 is required to ensure operational stability in the early stages of the business.
Revenue Potential
Franchisees can expect strong revenue potential, with average annual revenue per unit reported at $721,835. The median annual revenue stands at $612,963, while the lowest and highest annual revenues recorded are $137,951 and $1,957,132.64, respectively. This indicates a lucrative opportunity for franchisees who effectively manage their operations.
Breakeven and Payback
Mr. Transmission franchises have a breakeven time of approximately 24 months, providing a clear timeline for when franchisees can expect to recover their initial investment. Additionally, the average investment payback period is notably shorter at just 14 months, which enhances the appeal of this franchise opportunity for potential investors.
Franchise Growth
The Mr. Transmission franchise has shown steady growth over recent years. In 2019, there were 114 franchised units, which increased to 119 in 2020. By 2021, the total number of franchised units slightly decreased to 116, indicating stability in the brand’s presence in the market. The consistent number of corporate units at 2 also reflects a solid foundation for franchisee support.
Financial Structure
The average annual revenue for Mr. Transmission franchises is $889,365.92, with a cost of goods sold (COGS) accounting for 51% of revenue. This results in a gross profit margin of 49%. Although specific operating expenses and EBITDA figures are not provided, understanding these metrics is crucial for franchisees to manage profitability effectively.
Operational Expenses
Franchisees should anticipate various operational expenses, including rent and utilities ranging from $12,000 to $18,000 each annually. Marketing and advertising costs are estimated at $25,200 for local advertising, while training expenses range from $1,500 to $2,500. Miscellaneous operating expenses can vary between $36,500 and $57,500, contributing to the total estimated startup costs of $208,613 to $265,873.
Frequently Asked Questions
The initial investment for a Mr. Transmission franchise ranges from $208,613 to $301,767, which includes the franchise fee and other startup costs.