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Murphy Business & Financial Corporation Franchise ProfileConsultant & Business Brokers > Mergers & Acquisitions |
What is the Initial Investment for a Murphy Business & Financial Corporation Franchise?
The initial investment to start a Murphy Business & Financial Corporation franchise ranges from $16,645 to $115,925. This includes a franchise fee of $40,000. Potential franchisees should also prepare for ongoing costs, including a 10% royalty fee on revenue and a 5% marketing fee. Having a cash reserve of at least $16,645 and a net worth between $100,000 and $1,000,000 is essential to meet the financial requirements of the franchise.
What Are the Revenue Expectations for a Murphy Business & Financial Corporation Franchise?
Franchisees can expect an average annual revenue of approximately $215,390 per unit, with a median annual revenue of $107,190. The revenue can vary significantly, with the lowest annual revenue reported at $75,000 and the highest reaching an impressive $3,376,234. Understanding these figures can help potential investors assess the profitability of this franchise opportunity and gauge their expected return on investment.
What is the Breakeven and Payback Period for a Murphy Business & Financial Corporation Franchise?
The breakeven time for a Murphy Business & Financial Corporation franchise is approximately 12 months, allowing franchisees to recoup their initial investment relatively quickly. The investment payback period is estimated at 24 months, which means that franchisees can expect to recover their total investment within two years of operation, assuming they achieve average revenue levels.
How Many Units Does Murphy Business & Financial Corporation Operate?
As of 2021, Murphy Business & Financial Corporation operates a total of 130 units, with 129 being franchised and 1 corporate-owned. The franchise has shown steady growth, increasing its number of franchised units from 121 in 2019 to 129 in 2021. This growth trend indicates a healthy demand for their services and a robust franchise system that supports expansion.
Murphy Business & Financial Corporation 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:
Murphy Business & Financial Corporation 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 | 122 | 125 | 130 |
| Net Change YoY | 3 | 5 | |
| Franchised Units | 121 | 124 | 129 |
| Net Change YoY | 3 | 5 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Murphy Business & Financial Corporation franchise offers a range of initial investment costs, with a low of $16,645 and a high of $115,925. The initial franchise fee is set at $40,000, making it accessible for aspiring entrepreneurs looking to enter the franchise industry. Prospective franchisees should also be prepared for additional costs related to setup and operations, with a cash requirement ranging from $16,645 to $115,925.
Revenue Potential
Franchisees can expect average annual revenue per unit to be approximately $103,364, with a median of $107,190. The revenue figures showcase the franchise's potential for profitability, with some units generating as much as $3,376,234 annually. This indicates a healthy earning potential for franchise owners who effectively manage their operations.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 10% on gross sales, along with a marketing fee of 5%. These fees contribute to the overall support and brand recognition provided by the Murphy Business & Financial Corporation, ensuring franchisees benefit from collective marketing efforts and ongoing operational support.
Breakeven and Payback Period
The breakeven period for franchisees is estimated at 12 months, indicating a relatively quick return on investment. Additionally, the investment payback period is projected at 24 months, which is favorable for those looking to recoup their initial investment and start generating profit within a reasonable timeframe.
Franchise Growth
The Murphy Business & Financial Corporation has shown consistent growth in franchised units, increasing from 121 units in 2019 to 129 units in 2021. This growth trend reflects the brand's expanding market presence and the increasing interest from entrepreneurs seeking to join a reputable franchise system.
Operational Support
Franchisees benefit from comprehensive operational support, including training, marketing resources, and ongoing assistance from corporate. This support structure is designed to help franchise owners navigate challenges and optimize their business operations, ultimately contributing to their success within the franchise network.
Frequently Asked Questions
The initial investment for a Murphy Business & Financial Corporation franchise ranges from $16,645 to $115,925, which includes a franchise fee of $40,000.