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Restoration Specialties Franchise Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Restoration Specialties Franchise?
To become a Restoration Specialties franchisee, you should be prepared for an initial investment ranging from $155,823 to $503,641. This includes an initial franchise fee of $85,000. Additionally, as a franchisee, you will need to maintain a cash reserve between $155,823 and $503,641, and meet a net worth requirement of $150,000 to $250,000. Understanding these financial commitments is essential before embarking on your franchise journey.
What are the Ongoing Fees for Restoration Specialties Franchisees?
As a Restoration Specialties franchisee, you will be responsible for ongoing fees that include a royalty fee of 7% of your unit's revenue and a marketing fee of 2%. These fees contribute to the overall support and brand recognition you receive as part of the franchise network. It's important to factor these ongoing costs into your financial planning to ensure the sustainability of your business.
What is the Average Revenue Potential for a Restoration Specialties Franchise?
The average annual revenue per unit for a Restoration Specialties franchise is approximately $632,943, with a median annual revenue of $402,905. However, revenues can vary significantly, with the lowest reported annual revenue at $81,164 and the highest reaching $2,255,502. This wide range illustrates the potential for growth and the importance of effective management and marketing strategies in maximizing revenue.
What is the Expected Timeline for Profitability with a Restoration Specialties Franchise?
Franchisees can expect to reach breakeven within about 18 months of operation, with an investment payback period estimated at 21 months. These timelines highlight the importance of strategic planning and operational efficiency in achieving profitability. By understanding these metrics, aspiring franchisees can better assess their financial readiness and set realistic expectations for their business journey.
Restoration Specialties Franchise 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:
Restoration Specialties Franchise Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 69 | 73 | 74 |
| Net Change YoY | 4 | 1 | |
| Franchised Units | 68 | 72 | 73 |
| Net Change YoY | 4 | 1 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Restoration Specialties Franchise offers a range of initial investment options, with costs ranging from $155,823 to $503,641. The franchise fee is set at $85,000, and franchisees are required to pay a royalty fee of 7% on gross sales, along with a 2% marketing fee. The total cash required for starting a franchise unit falls between these initial investment figures, ensuring potential owners are well-informed about their financial commitments.
Revenue Potential
Franchisees can expect significant revenue opportunities, with an average annual revenue per unit of $632,943. The median annual revenue stands at $402,905, while the highest-performing units can generate up to $2,255,502. This diverse revenue range highlights the potential for profitability, though it is essential for prospective franchisees to consider individual market conditions and operational effectiveness.
Breakeven and Payback
The Restoration Specialties Franchise has a breakeven time of approximately 18 months, allowing franchisees to recover their initial investment relatively quickly. The investment payback period is estimated at 21 months, which is favorable compared to many other franchise opportunities. This timeline can help franchisees plan their financial strategies effectively as they establish their businesses.
Franchise Growth
Since its inception, the Restoration Specialties Franchise has shown steady growth in the number of franchised units. In 2018, there were 68 franchised units, which increased to 73 by 2020. This growth indicates a solid market demand for the franchise's services and suggests a supportive environment for new franchisees looking to join the network.
Operational Expenses
Franchisees should be prepared for various operational expenses, which can include leasehold improvements, insurance, and training costs. The total estimated annual running expenses range from $155,823 to $295,592. Understanding these costs is crucial for effective budgeting and financial planning, as they can significantly impact overall profitability.
Corporate Support
Restoration Specialties Franchise provides robust corporate support to its franchisees, including training programs and ongoing operational assistance. This support is vital for new franchise owners, helping them navigate initial challenges and establish successful operations. The franchise's commitment to franchisee success is a key factor in its overall growth and sustainability.
Frequently Asked Questions
The initial investment for a Restoration Specialties franchise ranges from $155,823 to $503,641. This includes the franchise fee, equipment, and other startup costs.