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Pokeworks Franchise ProfileRestaurant Franchises > Specialty Cuisine |
What Are the Initial Investment Requirements for a Pokeworks Franchise?
To open a Pokeworks franchise, you will need to prepare for an initial investment ranging from $386,468 to $646,188. This includes a franchise fee of $35,000. Additionally, you should have cash readily available between $35,000 and $70,000 and meet a net worth requirement of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to gauge their readiness for this opportunity.
What Are the Ongoing Fees Associated with a Pokeworks Franchise?
As a Pokeworks franchisee, you will incur ongoing fees that include a royalty fee of 6% of your gross sales and a marketing fee of 1.5%. These fees are essential for maintaining brand presence and supporting marketing efforts. It's important to factor these costs into your financial projections to ensure sustainable profitability.
What Can You Expect in Terms of Revenue from a Pokeworks Franchise?
The average annual revenue for a Pokeworks franchise unit is approximately $969,840, with a median revenue of $811,457. Revenue can vary significantly, with the lowest reported annual revenue at $386,727 and the highest reaching $2,428,340. This potential for strong revenue highlights the brand's appeal and the opportunity for franchisees to achieve financial success.
How Quickly Can You Expect to Break Even with a Pokeworks Franchise?
Franchisees can anticipate a breakeven time of around 18 months, with an investment payback period of just 11 months. This timeline suggests that, with effective management and marketing strategies, franchisees may quickly recover their initial investment and start generating profit, making Pokeworks an attractive option in the franchise landscape.
Pokeworks 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:
Pokeworks Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 57 | 61 | 64 |
| Net Change YoY | 4 | 3 | |
| Franchised Units | 49 | 53 | 56 |
| Net Change YoY | 4 | 3 | |
| Corporate Units | 8 | 8 | 8 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Pokeworks franchise offers a compelling investment opportunity with an initial investment range of $386,468 to $646,188. The franchise fee is set at $35,000, while ongoing royalties are 6% of gross sales, and a marketing fee of 1.5% is also required. Prospective franchisees should have cash reserves between $35,000 and $70,000 and a net worth of $500,000 to $1,000,000 to qualify for ownership.
Financial Performance
On average, Pokeworks units generate annual revenues of approximately $969,840, with a median of $811,457. The revenue range is substantial, with some units achieving as much as $2,428,340 annually. The breakeven point for new franchisees is typically around 18 months, and the investment payback period averages just 11 months, making it an attractive option for investors looking for a swift return.
Growth Trajectory
Pokeworks has demonstrated consistent growth in its franchise model, expanding from 49 franchised units in 2020 to 56 in 2022. Over the same period, the total number of units increased from 57 to 64, indicating a robust demand for the brand. The stability of corporate units, remaining at 8, suggests a focused strategy on franchise expansion while maintaining strong corporate oversight.
Operating Expenses
The average annual operating expenses for a Pokeworks franchise total approximately $1,853,231. Key expense categories include payroll and related costs at $725,446, general and administrative expenses at $594,542, and advertising and promotion costs at $494,427. Understanding these expenses is crucial for franchisees to effectively manage their operations and maximize profitability.
Profitability Metrics
Pokeworks franchises exhibit a gross profit margin of 68.3%, translating to a gross profit of $661,840 from average annual revenues. Cost of goods sold (COGS) accounts for 31.7% of revenue, indicating efficient management of food costs. The EBITDA stands impressively at 227.9%, reflecting strong operational efficiency and the potential for significant profit generation for franchise owners.
Brand Mission
Pokeworks is committed to delivering fresh, high-quality poke bowls that celebrate the vibrant flavors of Hawaiian cuisine. The brand focuses on sustainability and community, sourcing ingredients responsibly and engaging with local communities. This mission not only enhances the customer experience but also fosters brand loyalty, making Pokeworks a sought-after choice for health-conscious consumers.
Frequently Asked Questions
The initial investment for a Pokeworks franchise ranges from $386,468 to $646,188, which includes the franchise fee and other startup costs.