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Salata Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Salata Franchise?
The initial investment for a Salata franchise ranges from $285,500 to $968,500. This includes a franchise fee of $40,000 and requires cash on hand between $522,000 and $968,500. Prospective franchisees should also consider the net worth requirement, which ranges from $500,000 to $1,000,000, ensuring they are financially prepared to start this venture.
What are the Ongoing Fees for a Salata Franchise?
Salata franchisees are subject to ongoing fees that include a royalty fee of 5% on gross sales and a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can help drive customer traffic and boost sales. Understanding these costs is crucial for financial planning and profitability.
What is the Average Revenue and Profitability of Salata Units?
The average annual revenue per Salata unit is approximately $1,214,970, with a median annual revenue of $768,346. Franchisees can expect a gross profit margin of about 65.77%, translating to an EBITDA of $472,958, or 39% of revenue. This strong financial performance highlights the potential for profitability within the Salata franchise model.
How Long Does it Take to Break Even with a Salata Franchise?
Franchisees can anticipate a breakeven time of around 15 months, with an investment payback period of approximately 17 months. These timelines are crucial for prospective franchisees to understand, as they indicate how quickly they could start recouping their initial investment and begin generating profit from their Salata franchise.
Salata 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:
Salata Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 53 | 55 | 71 |
| Net Change YoY | 2 | 16 | |
| Franchised Units | 38 | 41 | 57 |
| Net Change YoY | 3 | 16 | |
| Corporate Units | 15 | 14 | 14 |
| Net Change YoY | -1 | 0 |
Initial Investment
The Salata franchise requires a significant initial investment ranging from $285,500 to $968,500. This includes a franchise fee of $40,000, as well as additional costs for equipment, inventory, and location setup. Entrepreneurs should ensure they have adequate cash reserves, with a cash requirement between $522,000 and $968,500 to comfortably cover initial expenses.
Financial Performance
Salata franchises have shown promising financial performance, with average annual revenue per unit reported at $801,434. The median annual revenue is slightly lower at $768,346, while the range of annual revenue varies from $425,544 to as high as $1,849,684. This indicates potential for profitability, depending on location and management.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales and a marketing fee of 3%. These ongoing fees contribute to the overall support and brand marketing provided by Salata, ensuring franchisees benefit from established advertising and promotional efforts.
Breakeven and Payback Period
The average breakeven time for a Salata franchise is approximately 15 months, indicating a relatively quick path to profitability. Additionally, franchisees can expect to see a return on their investment within about 17 months, making it an attractive option for those seeking a solid financial opportunity.
Corporate and Franchised Units
As of 2018, Salata operates a total of 71 units, with 57 being franchised and 14 corporate-owned. This growth reflects the brand's expanding footprint and increasing popularity, providing a supportive network for franchisees as they navigate their business journey.
Operational Expenses
Franchisees should anticipate average annual running expenses totaling between $515,559 and $532,059. Key expenses include labor costs of approximately $326,195 and rent expenses around $164,864. Understanding these costs is crucial for effective budgeting and financial planning within the Salata franchise model.
Frequently Asked Questions
The initial investment for a Salata franchise ranges from $285,500 to $968,500. This includes the franchise fee, equipment, and other startup costs.