|
Multivista Franchise ProfileBusiness Services Franchises > Consulting |
What is the Initial Investment for a Multivista Franchise?
To open a Multivista franchise, you should prepare for an initial investment ranging from $213,500 to $635,500. This investment covers various startup costs, including a franchise fee that can vary between $20,000 and $157,500. It's crucial to have cash readily available, with a requirement of $20,000 to $157,500, alongside a net worth requirement of $500,000 to $1,000,000 to ensure you can sustain operations and growth.
What are the Financial Expectations for Multivista Franchisees?
Multivista franchisees can expect an average annual revenue of approximately $4,058,300 per unit, with a median of $1,600,000. The financial model indicates a breakeven time of about 12 months and an investment payback period of around 24 months. Understanding these financial metrics is essential for potential franchisees to assess the profitability and viability of their investment.
What Ongoing Fees Should Multivista Franchisees Anticipate?
Franchisees should be aware of ongoing fees, which include a royalty fee of 7% on gross sales and a marketing fee of 2%. These fees contribute to the overall operational costs and are essential for maintaining brand standards and marketing efforts. It's important to factor these fees into your financial planning to ensure a sustainable business model.
How Has Multivista's Franchise Network Grown?
Multivista has shown steady growth in its franchise network, with 62 franchised units in 2017, increasing to 72 in 2018, and reaching 73 in 2019. The total units have also grown, indicating a healthy expansion strategy. This growth reflects the brand's ability to attract new franchisees and maintain existing relationships, which is a positive sign for potential investors looking to join a thriving network.
Multivista 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:
Multivista Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 67 | 75 | 76 |
| Net Change YoY | 8 | 1 | |
| Franchised Units | 62 | 72 | 73 |
| Net Change YoY | 10 | 1 | |
| Corporate Units | 5 | 3 | 3 |
| Net Change YoY | -2 | 0 |
Investment Overview
The Multivista franchise offers a compelling investment opportunity with an initial investment range from $213,500 to $635,500. The franchise fee varies between $20,000 and $157,500, providing flexibility for potential franchisees. With a required cash investment of $20,000 to $157,500 and a net worth requirement of $500,000 to $1,000,000, this franchise targets individuals and investors with significant capital.
Revenue Potential
Franchisees can expect strong revenue performance, with average annual revenue per unit reported at $4,058,300 and median annual revenue at $1,600,000. This highlights the lucrative nature of the business, although revenue can vary, with the lowest reported annual revenue at $220,411 and the highest at $1,000,000. The potential for profitability makes this franchise an attractive option for aspiring entrepreneurs.
Fees and Royalties
Multivista requires a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These fees are crucial for maintaining brand standards and supporting franchisee marketing efforts. Understanding these costs is essential for potential franchisees as they plan their financial strategy and assess overall profitability.
Performance Metrics
Franchisees can expect to break even within 12 months and achieve an investment payback period of approximately 24 months. These performance metrics indicate a relatively quick return on investment, making the Multivista franchise an appealing option for those looking to enter the franchise space with a solid business model.
Corporate Growth
Since its inception, Multivista has shown steady growth in franchised units, increasing from 62 units in 2017 to 73 units in 2019. In contrast, the number of corporate-owned units has remained stable, indicating a strong focus on franchisee expansion. This growth trajectory suggests a healthy demand for the franchise and a supportive network for franchisees.
Operational Insights
The average annual revenue is supported by a gross profit margin of 25.6%, with operating expenses accounting for 22% of revenue. The cost of goods sold (COGS) is significant at 74.4%, emphasizing the importance of effective supply chain management. Franchisees must be prepared to manage these operational aspects to optimize their financial performance and ensure long-term success.
Frequently Asked Questions
The initial investment for a Multivista franchise ranges from $213,500 to $635,500, which includes the franchise fee and other startup costs.