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Pop-A-Lock Franchise ProfileAutomotive Franchises > Auto Repair |
What Are the Initial Investment Requirements for a Pop-A-Lock Franchise?
To open a Pop-A-Lock franchise, you will need to prepare for an initial investment ranging from $137,777 to $170,822. This includes a franchise fee of $23,000, along with cash requirements between $33,000 and $41,000. It's essential to ensure you meet the net worth requirement, which falls between $500,000 and $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to assess their readiness for ownership.
What Are the Ongoing Fees for Pop-A-Lock Franchisees?
As a Pop-A-Lock franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% on gross sales and a marketing fee of 1%. These fees contribute to the overall support and resources provided by the franchisor, helping you promote your business effectively. Being aware of these costs will help you plan your budget and financial expectations as you operate your franchise.
What Are the Revenue Expectations for a Pop-A-Lock Franchise?
Pop-A-Lock franchises have an average annual revenue of approximately $126,720 per unit, with the lowest revenue reported at $30,421.76 and the highest reaching an impressive $7,494,309. With a breakeven time of about 12 months and an investment payback period of 17 months, franchisees can anticipate a reasonable return on their investment. These figures highlight the potential profitability that comes with owning a Pop-A-Lock franchise, making it an attractive option for many entrepreneurs.
How Many Units Does Pop-A-Lock Currently Operate?
As of 2022, Pop-A-Lock operates a total of 478 units, with 471 being franchised and 7 corporate-owned. The franchise has seen a slight decline in the number of franchised units from 2021 to 2022. This data provides insight into the brand's stability and presence in the market, which can be a significant factor for potential franchisees considering the strength of the network they would be joining.
Pop-A-Lock 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:
Pop-A-Lock 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 | 485 | 486 | 478 |
| Net Change YoY | 1 | -8 | |
| Franchised Units | 478 | 479 | 471 |
| Net Change YoY | 1 | -8 | |
| Corporate Units | 7 | 7 | 7 |
| Net Change YoY | 0 | 0 |
Investment Overview
The initial investment for a Pop-A-Lock franchise ranges from $137,777 to $170,822. This includes a franchise fee of $23,000, with ongoing royalty fees set at 7% of gross sales. Franchisees should prepare for additional marketing fees of 1%. To get started, a cash requirement between $33,000 and $41,000 is necessary, along with a net worth of $500,000 to $1,000,000.
Revenue Potential
Pop-A-Lock franchises show promising revenue potential, with average annual revenue per unit reported at $126,720. However, figures can vary widely, as the lowest annual revenue recorded was $30,421.76, while the highest soared to $7,494,309. This range highlights the vast opportunities available for franchisees who successfully tap into their local markets.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 17 months, indicating a relatively quick return on investment for those who effectively manage their operations and marketing strategies.
Corporate and Franchise Units
As of 2022, Pop-A-Lock operates a total of 478 units, with 471 being franchised and 7 corporate-owned. The number of franchised units has seen slight fluctuations over the years, indicating a stable presence in the market, which is beneficial for prospective franchisees looking for a reliable brand.
Average Expenses
Running a Pop-A-Lock franchise incurs average annual expenses totaling around $258,585. Key expenses include rent ($73,872), utilities ($42,000), and management fees ($116,713). Understanding these costs is crucial for franchisees when forecasting profitability and managing cash flow.
Company Background
Pop-A-Lock is a well-established franchise specializing in locksmith services and roadside assistance. Founded in 1991, the brand has grown to become a recognized leader in the industry, providing reliable services to customers across the United States. With a commitment to quality and customer satisfaction, Pop-A-Lock has built a strong reputation that franchisees can leverage in their local markets.
Frequently Asked Questions
The initial investment for a Pop-A-Lock franchise ranges from $137,777 to $170,822, which includes the franchise fee and other startup costs.