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Parisi Speed School Franchise ProfileChildren’s Franchises > Children's Fitness |
What Are the Initial Investment Requirements for a Parisi Speed School Franchise?
To open a Parisi Speed School franchise, you need to prepare for a range of initial investment costs. The total investment can vary significantly, with a low of $13,250 and a high of $155,500. This includes a franchise fee of $3,500, which is part of your startup costs. Additionally, you will need to meet a net worth requirement ranging from $100,000 to $250,000. Having sufficient cash on hand is crucial, as it ensures you can manage initial expenses and operational costs before your franchise becomes profitable.
What Are the Ongoing Fees for Parisi Speed School Franchisees?
As a franchisee, you will be subject to ongoing fees that are essential for maintaining brand standards and support. Parisi Speed School charges a royalty fee of 6% on gross sales, along with a 2% marketing fee. These fees contribute to the franchise's advertising efforts and overall brand presence, helping to drive customers to your location. It’s important to factor these ongoing costs into your financial planning to ensure the sustainability of your business.
What Is the Financial Performance of a Parisi Speed School Franchise?
The financial performance of a Parisi Speed School franchise can be promising. The average annual revenue per unit is approximately $955,151, with the highest reported revenue reaching $1,285,875. However, it’s essential to consider the costs involved, as the average operating expenses are reported at $748,551. This indicates a gross profit margin of about 80.8%, which is significant. Understanding these metrics can help you assess the potential return on investment and profitability of the franchise.
How Long Does It Take to Break Even with a Parisi Speed School Franchise?
Franchisees can expect to break even within approximately 12 months of opening their Parisi Speed School location. This quick recovery period is appealing for many investors, as it allows for a faster return on investment. Additionally, the average investment payback period is around 36 months, making it essential for franchisees to manage their finances effectively during the initial stages of operation. Understanding these timelines is crucial for setting realistic financial goals and expectations.
Parisi Speed School 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:
Parisi Speed School Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 84 | 80 | 84 |
| Net Change YoY | -4 | 4 | |
| Franchised Units | 84 | 80 | 84 |
| Net Change YoY | -4 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Parisi Speed School franchise offers a range of initial investment options, with costs ranging from $13,250 to $155,500. This flexibility allows aspiring franchisees to choose a financial commitment that aligns with their budget and business goals. The initial franchise fee is set at $3,500, making it an accessible entry point for those looking to join a growing franchise network.
Ongoing Fees
Franchisees are required to pay a royalty fee of 6% on gross sales, alongside a 2% marketing fee. These fees contribute to the overall support and resources provided by the franchisor, helping franchisees effectively market their services and maintain brand consistency.
Revenue Potential
The average annual revenue per unit for a Parisi Speed School franchise is approximately $955,151, with a median revenue of $955,151. Franchisees can expect a range of annual revenues, with the lowest reported at $89,390 and the highest at $1,285,875. This potential for strong revenue underscores the business's viability in the competitive fitness industry.
Breakeven and Payback
Franchisees can anticipate a breakeven period of around 12 months, which is relatively quick for the franchise industry. The investment payback period is estimated at 36 months, providing a clear timeline for franchisees to recover their initial investment and start generating profit.
Operational Performance
The Parisi Speed School franchise has an average gross profit margin of 80.8%, indicating strong operational efficiency. However, operating expenses are significant, totaling approximately $748,551 annually. Understanding these financial metrics is crucial for franchisees to manage costs and maximize profitability.
Franchise Growth
Since 2016, the number of franchised units has remained stable, with 80 units in 2017 and 84 units in both 2016 and 2018. This consistency in unit count reflects a solid foundation for franchise growth, providing new franchisees with a reliable support network and established brand presence in the market.
Frequently Asked Questions
The initial investment for a Parisi Speed School franchise ranges from $13,250 to $155,500, depending on various factors such as location and setup costs.