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Navis Pack & Ship Franchise ProfileBusiness Services Franchises > Shipping & Packaging |
What Are the Initial Investment Requirements for a Navis Pack & Ship Franchise?
To open a Navis Pack & Ship franchise, you should prepare for a range of initial investment costs. The initial franchise fee is set at $29,950, with total investment costs spanning from $11,231 to $319,780. Additionally, it's essential to have cash on hand between $25,000 and $50,000, and a net worth of $200,000 to $300,000 is required. Understanding these financial commitments is crucial for aspiring franchisees to gauge their readiness for this business opportunity.
What Are the Ongoing Fees Associated with a Navis Pack & Ship Franchise?
Navis Pack & Ship franchisees are subject to ongoing fees that can impact profitability. This includes a royalty fee of 5% of gross sales, alongside a marketing fee of 2%. These fees contribute to the overall operational costs and should be factored into your financial planning. Being aware of these ongoing expenses helps franchisees maintain a clear picture of their financial obligations and aids in budgeting effectively.
What Is the Average Revenue Potential for a Navis Pack & Ship Franchise?
The average annual revenue for a Navis Pack & Ship franchise unit is approximately $382,000, with a median annual revenue of $342,000. However, revenue can vary widely, with the lowest reported annual revenue at $43,000 and the highest reaching $1,530,300. This potential for revenue variability highlights the importance of location, market demand, and operational efficiency in determining the success of each franchise unit.
How Long Will It Take to Break Even with a Navis Pack & Ship Franchise?
Franchisees can expect to reach breakeven within about 12 months of opening their Navis Pack & Ship location. The investment payback period is estimated at 30 months, making it essential for new franchisees to have sufficient working capital to sustain operations during this initial phase. Understanding these timelines can help franchisees set realistic financial goals and prepare for the early stages of their business.
Navis Pack & Ship 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:
Navis Pack & Ship 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 | 182 | 180 | 176 |
| Net Change YoY | -2 | -4 | |
| Franchised Units | 181 | 180 | 176 |
| Net Change YoY | -1 | -4 | |
| Corporate Units | 1 | 0 | 0 |
| Net Change YoY | -1 | 0 |
Investment Overview
The Navis Pack & Ship franchise offers a compelling investment opportunity with a low initial investment ranging from $11,231 to $319,780. The initial franchise fee is set at $29,950, while ongoing royalty fees are 5% of gross sales. A marketing fee of 2% is also required, ensuring franchisees benefit from collective brand promotion and visibility. Prospective owners should have a cash reserve of $25,000 to $50,000 and a net worth between $200,000 and $300,000 to qualify for franchise ownership.
Financial Performance
Navis Pack & Ship units generate an average annual revenue of approximately $382,000, with a median revenue of $342,000. The revenue range is significant, with the lowest reported annual revenue at $43,000 and the highest reaching $1,530,300. This variability highlights the potential for profitability, depending on location and management effectiveness. Franchisees can expect to break even within 12 months and achieve a full investment payback in about 30 months.
Franchise Growth
Navis Pack & Ship has experienced a steady presence in the market, with 181 franchised units in 2021, slightly decreasing to 180 in 2022, and further to 176 in 2023. This trend indicates a stable franchise system that maintains a consistent number of operating units, reflecting the brand's resilience and the ongoing demand for its services. The absence of corporate-owned units since 2022 suggests a focus on franchising as the primary growth model.
Operational Costs
Franchisees should be prepared for various operational expenses. Average annual costs include rent at $33,555, utilities at $2,500, and marketing and advertising expenses at $5,500. Other costs include salaries totaling $50,000, insurance at $2,500, and miscellaneous expenditures around $2,000. Overall, the total annual running expenses average about $96,055, which is a crucial factor for franchisees to consider when assessing profitability.
Franchise Support
Navis Pack & Ship provides comprehensive support to its franchisees, including training, marketing assistance, and operational guidance. This support is designed to help franchisees navigate the complexities of running a shipping and logistics business, ensuring they have the resources needed to succeed. The franchise's commitment to ongoing training and development is vital for maintaining high service standards and adapting to market changes.
Market Position
Navis Pack & Ship operates in the growing shipping and logistics sector, catering to both individual and business clients. With the rise in e-commerce and demand for shipping solutions, the franchise is well-positioned to capitalize on these trends. The brand's focus on customized shipping solutions and customer service differentiates it from competitors, making it an attractive option for entrepreneurs looking to enter a stable and expanding market.
Frequently Asked Questions
The initial investment for a Navis Pack & Ship franchise ranges from $11,231 to $319,780, which includes the initial franchise fee of $29,950.