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Rita's Ice-Custard-Happiness Franchise ProfileFood Franchises > Ice Cream & Frozen Yogurt |
What is the Initial Investment for a Rita's Ice-Custard-Happiness Franchise?
To open a Rita's Ice-Custard-Happiness franchise, you can expect an initial investment ranging from $121,335 to $528,061. This includes a franchise fee of $35,000, which is part of the startup costs. Additionally, you will need to have cash available between $194,863 and $528,061 to cover various expenses during the initial phase. It’s crucial to evaluate your financial readiness before proceeding with your application.
What are the Ongoing Fees for Rita's Ice-Custard-Happiness Franchisees?
Franchisees of Rita's Ice-Custard-Happiness are required to pay a royalty fee of 6.5% on gross sales. There is also a marketing fee of 3% that contributes to the brand's advertising efforts. These ongoing fees are essential for maintaining the brand's visibility and support, so it's important to factor them into your financial planning.
What is the Average Annual Revenue for a Rita's Ice-Custard-Happiness Franchise?
On average, a Rita's Ice-Custard-Happiness franchise generates annual revenue of approximately $239,230, with a median revenue of $230,039. However, performance can vary significantly, with revenues ranging from a low of $43,192 to a high of $950,308. Understanding these figures can help you set realistic financial expectations and goals for your business.
How Quickly Can You Expect to Break Even with a Rita's Franchise?
Franchisees can typically expect to break even within about 12 months of opening their Rita's Ice-Custard-Happiness location. The investment payback period is estimated at 24 months, meaning you could potentially recover your initial investment within two years. This quick return can be appealing for aspiring entrepreneurs looking for a profitable venture in the franchise space.
Rita's Ice-Custard-Happiness 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:
Rita's Ice-Custard-Happiness 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 | 565 | 564 | 531 |
| Net Change YoY | -1 | -33 | |
| Franchised Units | 565 | 564 | 531 |
| Net Change YoY | -1 | -33 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Rita's Ice-Custard-Happiness offers a franchise opportunity with a low initial investment ranging from $121,335 to $528,061. The initial franchise fee is set at $35,000, while ongoing royalty fees are 6.5% of gross sales. Franchisees should also budget for a marketing fee of 3%. The total cash required to open a unit can vary significantly, ranging from $194,863 to $528,061, depending on location and other factors.
Financial Performance
On average, each Rita's franchise unit generates annual revenue of approximately $239,230, with a median revenue of $230,039. The revenue can vary widely, with the lowest recorded at $43,192 and the highest at $950,308. This performance indicates a promising potential for profitability, with a breakeven point typically reached within 12 months and an investment payback period of around 24 months.
Franchise Growth
Rita's Ice-Custard-Happiness has shown a stable franchise presence, with 565 franchised units in 2018, slightly decreasing to 531 by 2020. Notably, there are no corporate-owned locations, indicating a strong focus on franchising as a growth strategy. This model allows franchisees to benefit from the brand's established reputation while operating independently.
Operational Costs
Operating expenses for a typical Rita's franchise include rent and utilities averaging $24,000, marketing and advertising at $10,000, and management salaries around $50,000. Other costs, including insurance and accounting services, contribute to a total annual expense of approximately $90,500. Understanding these costs is crucial for effective financial planning and management.
Brand Mission
Rita's Ice-Custard-Happiness is dedicated to providing a joyful experience through its unique frozen treats. The brand focuses on delivering high-quality, flavorful ice custard and promoting happiness in every scoop. By prioritizing customer satisfaction and community engagement, Rita's aims to create a welcoming environment that keeps guests coming back for more.
Franchise Support
Franchisees of Rita's Ice-Custard-Happiness benefit from comprehensive support, including training programs, marketing assistance, and operational guidance. The franchise system is designed to empower owners with the tools needed for success, ensuring they can effectively manage their business and maximize profitability while adhering to brand standards.
Frequently Asked Questions
The initial investment for a Rita's franchise ranges from $121,335 to $528,061. This includes the franchise fee, equipment, and other startup costs.