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Passport Health Franchise ProfileHealthcare & Senior Care > Home Healthcare |
What Are the Initial Investment Requirements for a Passport Health Franchise?
To open a Passport Health franchise, you will need to prepare for an initial investment ranging from $75,950 to $106,400. This includes a franchise fee of $35,000. Additionally, you should have a net worth between $250,000 and $750,000 to qualify. It's essential to consider these financial commitments to ensure you can support your franchise as it gets off the ground.
What Are the Ongoing Fees for a Passport Health Franchise?
As a Passport Health franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your gross sales and a marketing fee of 2%. These fees contribute to the overall support and brand recognition that Passport Health provides, helping you maintain a competitive edge in the healthcare market.
What Is the Revenue Potential for a Passport Health Franchise?
The average annual revenue per unit for a Passport Health franchise is approximately $1,076,196, with a median annual revenue of $500,000. This potential for strong revenue generation makes it an appealing option for aspiring franchisees. However, it’s important to note that actual earnings can vary significantly, with the highest annual revenue reaching nearly $29.8 million.
What Is the Expected Timeline for Profitability with a Passport Health Franchise?
Franchisees can expect to break even within about 12 months of operation, with an investment payback period typically around 24 months. This timeline indicates a relatively quick path to profitability, making Passport Health an attractive investment for those looking to enter the healthcare franchise space.
Passport Health 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:
Passport Health Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 235 | 242 | 256 |
| Net Change YoY | 7 | 14 | |
| Franchised Units | 168 | 162 | 169 |
| Net Change YoY | -6 | 7 | |
| Corporate Units | 67 | 80 | 87 |
| Net Change YoY | 13 | 7 |
Initial Investment
The Passport Health franchise requires an initial investment ranging from $75,950 to $106,400. This includes a franchise fee of $35,000, which is part of the overall startup costs. Prospective franchisees should also consider additional working capital to cover operational expenses during the initial phase.
Financial Performance
Passport Health franchises showcase strong financial performance, with an average annual revenue per unit reported at $1,076,196. The median annual revenue stands at $500,000, indicating a robust earning potential for franchise owners. The highest annual revenue recorded is an impressive $29,780,488, highlighting the scalability of the business model.
Royalties and Fees
Franchisees are subject to a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These fees contribute to ongoing support and brand development, ensuring franchisees are equipped with the necessary tools to succeed in their markets.
Breakeven and Payback
The breakeven period for a Passport Health franchise is estimated at 12 months, allowing franchisees to recover their initial investment quickly. Additionally, the investment payback period is approximately 24 months, making it an attractive option for those looking for a solid return on investment.
Corporate and Franchised Units
As of recent years, Passport Health has demonstrated steady growth, with 169 franchised units in 2017, up from 168 in 2015. The number of corporate units also increased, indicating a commitment to expanding both franchised and company-owned locations, which can enhance brand visibility and support for franchisees.
Operational Expenses
Average operating expenses for Passport Health franchises are estimated at $12,952,501 annually. This includes costs such as general and administrative expenses, professional fees, and depreciation. Understanding these expenses is crucial for franchisees to effectively manage their financial performance and optimize profitability.
Frequently Asked Questions
The initial investment for a Passport Health franchise ranges from $75,950 to $106,400, which includes a franchise fee of $35,000.