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PrimoHoagies Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a PrimoHoagies Franchise?
To open a PrimoHoagies franchise, you should anticipate an initial investment ranging from $350,500 to $786,000. This includes a franchise fee of $15,000. Additionally, you will need to have cash on hand between $350,500 and $759,500, along with a required net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the venture.
What Are the Ongoing Fees Associated with a PrimoHoagies Franchise?
Franchisees of PrimoHoagies are subject to ongoing fees that include a royalty fee of 6% of gross sales and a marketing fee of 2.5%. These fees are essential for maintaining brand standards and supporting marketing initiatives. It’s important to factor these ongoing costs into your financial planning as they can impact overall profitability and cash flow.
What is the Financial Performance of a PrimoHoagies Franchise?
On average, a PrimoHoagies franchise generates annual revenue of approximately $962,975, with a median revenue of $883,271. The lowest recorded annual revenue per unit is $437,567, while the highest reaches $1,818,043. With a breakeven time of just 12 months, franchisees can expect a swift return on their investment, making it a potentially lucrative opportunity for those who effectively manage their operations.
What Support Does PrimoHoagies Offer Franchisees?
PrimoHoagies provides comprehensive support to its franchisees, which is vital for success in the competitive food service industry. This includes training programs, operational guidance, and marketing assistance. The franchise team is dedicated to helping you navigate the initial setup and ongoing management of your business, ensuring you have the resources and knowledge to thrive in your local market.
PrimoHoagies 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:
PrimoHoagies 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 | 82 | 79 | 82 |
| Net Change YoY | -3 | 3 | |
| Franchised Units | 78 | 79 | 82 |
| Net Change YoY | 1 | 3 | |
| Corporate Units | 4 | 0 | 0 |
| Net Change YoY | -4 | 0 |
Investment Overview
PrimoHoagies offers an attractive investment opportunity for aspiring franchisees with an initial investment ranging from $350,500 to $786,000. The franchise fee is set at $15,000, while ongoing royalty and marketing fees are 6% and 2.5% of gross sales, respectively. This structure allows franchisees to tap into a well-established brand with a proven business model.
Financial Performance
On average, PrimoHoagies units generate annual revenues of approximately $962,975, with a median revenue of $883,271. The financial model shows a healthy gross profit margin of 72.09%, indicating strong potential for profitability. Franchisees can expect a breakeven timeframe of about 12 months, making it a relatively quick path to return on investment.
Franchise Growth
PrimoHoagies has demonstrated consistent growth in its franchised units, increasing from 78 in 2020 to 82 in 2022. This growth reflects the brand's appeal and market demand. The franchise currently operates a total of 82 units, all of which are franchised, showcasing a strong commitment to expanding its franchise network.
Operational Costs
Franchisees should be aware of the operating expenses associated with running a PrimoHoagies location. Average annual operating expenses total around $486,000, which includes costs for goods sold, rent, utilities, and advertising contributions. Understanding these costs is crucial for effective financial planning and management.
Support and Training
PrimoHoagies is dedicated to providing comprehensive support and training for its franchisees. The franchise offers initial training programs, ongoing operational support, and marketing assistance to help franchisees succeed. This commitment to franchisee success ensures that new owners are well-equipped to operate their business effectively.
Brand Identity
PrimoHoagies is known for its high-quality hoagies and commitment to using fresh ingredients. The brand emphasizes a customer-centric approach, aiming to create a welcoming atmosphere in its locations. With a strong focus on quality and service, PrimoHoagies has established itself as a favorite among sandwich lovers, enhancing its brand recognition and loyalty.
Frequently Asked Questions
The initial investment for a PrimoHoagies franchise ranges from $350,500 to $786,000, which includes the franchise fee, equipment, and other startup costs.