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Restore Franchise ProfileHealth & Beauty Franchises > Spas |
What Are the Initial Investment Requirements for a Restore Franchise?
To open a Restore franchise, you will need to prepare for a total initial investment ranging from $779,515 to $1,318,840. This includes a franchise fee of $44,500. Additionally, you should have cash reserves between $90,000 and $225,000 and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is essential for aspiring franchisees to ensure they are adequately prepared for the costs associated with starting their business.
What Are the Ongoing Fees for a Restore Franchise?
As a Restore franchisee, you will be subject to ongoing fees that include a royalty fee of 7% on gross sales and a marketing fee of 2%. These fees are vital for maintaining brand presence and supporting marketing efforts that drive customer traffic to your location. Being aware of these fees can help you budget effectively and understand the long-term financial obligations of franchise ownership.
What Is the Average Revenue Potential for a Restore Franchise?
The average annual revenue per Restore unit is approximately $962,095, with a median revenue of $924,376. Revenue can vary significantly, with the lowest annual revenue reported at $153,932 and the highest at $2,314,011. This range highlights the potential for profitability, but it also underscores the importance of location, management, and market demand in determining your franchise’s success.
How Quickly Can You Expect to Break Even with a Restore Franchise?
Franchisees can expect to reach breakeven within 12 months of opening their Restore franchise. Additionally, the investment payback period is estimated at 24 months. These timelines are crucial for planning your financial strategy and assessing the viability of your investment, allowing you to gauge when you might start seeing returns on your initial investment.
Restore 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:
Restore 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 | 35 | 76 | 124 |
| Net Change YoY | 41 | 48 | |
| Franchised Units | 25 | 64 | 107 |
| Net Change YoY | 39 | 43 | |
| Corporate Units | 10 | 12 | 17 |
| Net Change YoY | 2 | 5 |
Franchise Overview
Restore is a leading wellness franchise dedicated to providing a holistic approach to health and recovery. With a focus on innovative therapies and cutting-edge technology, Restore offers services such as IV therapy, cryotherapy, and infrared sauna sessions. The franchise aims to empower individuals to take control of their health and well-being in a welcoming, community-driven environment.
Investment Requirements
The initial investment to open a Restore franchise ranges from $779,515 to $1,318,840. This includes a franchise fee of $44,500, with additional costs for equipment, build-out, and initial marketing. Potential franchisees should have a minimum cash requirement of $90,000 to $225,000 and a net worth between $500,000 and $1,000,000 to ensure they can sustain operations in the early stages.
Financial Performance
Restore franchises have shown promising financial performance, with an average annual revenue per unit of $962,095. The median annual revenue is slightly lower at $924,376, while units have reported revenues as low as $153,932 and as high as $2,314,011. The breakeven time is approximately 12 months, with an investment payback period of around 24 months, making it an attractive option for investors.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These fees contribute to the brand's national marketing efforts and ongoing support, ensuring franchisees benefit from a strong brand presence and promotional initiatives that drive customer traffic.
Growth and Expansion
Restore has experienced significant growth, increasing from 25 franchised units in 2020 to 107 in 2022. This expansion reflects the rising demand for wellness services and the brand's successful model. The company also operates corporate units, which have increased from 10 to 17 during the same period, demonstrating Restore's commitment to scaling its operations effectively.
Operational Insights
Running a Restore franchise involves managing various operational expenses, including rent, marketing, and professional fees. Average annual expenses can range significantly, with total startup costs aligning with the initial investment range. Franchisees must be prepared to handle operational challenges while focusing on delivering exceptional service to maintain profitability and customer satisfaction.
Frequently Asked Questions
The initial investment for a Restore franchise ranges from $779,515 to $1,318,840, which includes the franchise fee, equipment, and other startup costs.