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Sears Garage Door Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a Sears Garage Door Franchise?
To open a Sears Garage Door franchise, you will need to prepare for a range of initial investments. The total investment can vary significantly, with a low end of $29,150 and a high end of $97,350. This includes an initial franchise fee that ranges from $18,000 to $54,000. Additionally, you should be aware of ongoing costs such as a 10% royalty fee and a 2% marketing fee. It's essential to ensure you have the necessary cash available, as the required cash ranges from $29,150 to $97,350, alongside a net worth requirement of $100,000 to $1,000,000.
What Is the Financial Performance of a Sears Garage Door Franchise?
The average annual revenue for a Sears Garage Door franchise unit is approximately $91,024, with a median revenue of $100,000. However, revenue can vary widely, with the lowest annual revenue recorded at $100,000 and the highest reaching an impressive $7,396,656. Franchisees can expect a breakeven time of about 24 months and an investment payback period of just 12 months, making it a potentially lucrative investment for the right candidate.
What Are the Typical Operating Expenses for a Sears Garage Door Franchise?
Understanding the operational costs is crucial for any franchisee. Typical annual expenses for a Sears Garage Door franchise include office rent at about $9,000, utilities costing around $1,500, and marketing and advertising expenses of approximately $6,000. Additional costs include sales and accounting fees of $5,000 and management salaries totaling $24,000, bringing the total annual running expenses to around $48,500. Effective management of these costs can significantly impact profitability.
Why Consider Investing in a Sears Garage Door Franchise?
Investing in a Sears Garage Door franchise can be an attractive opportunity for those interested in the home improvement sector. With a well-established brand and a support system in place, franchisees can benefit from the company’s reputation and customer loyalty. The garage door industry is consistently in demand, and with the right location and management, franchisees can tap into a profitable market. If you have a passion for home services and a drive to succeed, this franchise could be a great fit for you.
Sears Garage Door 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:
Sears Garage Door Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2015 | 2016 | 2017 |
|---|---|---|---|
| Total Units | 158 | 154 | 124 |
| Net Change YoY | -4 | -30 | |
| Franchised Units | 153 | 150 | 121 |
| Net Change YoY | -3 | -29 | |
| Corporate Units | 5 | 4 | 3 |
| Net Change YoY | -1 | -1 |
Investment Overview
The Sears Garage Door franchise offers an attractive investment opportunity with a low initial investment range of $29,150 to $97,350. The franchise fee varies between $18,000 to $54,000, making it accessible for a wide range of entrepreneurs. With a net worth requirement of $100,000 to $1,000,000, this franchise is designed for those looking to enter a growing market with a proven business model.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $91,024 per unit, with a median revenue of $100,000. The highest reported annual revenue for a single unit reached an impressive $7,396,656, highlighting the potential for significant earnings. This revenue potential positions the Sears Garage Door franchise as a viable option for aspiring business owners seeking profitability.
Operational Costs
Franchisees should consider the ongoing operational costs, including a royalty fee of 10% on gross sales and a marketing fee of 2%. Average running expenses total around $48,500 annually, covering essential costs such as office rent, utilities, and salaries. Understanding these expenses is crucial for maintaining healthy profit margins and ensuring sustainable operations.
Breakeven and Payback
The Sears Garage Door franchise boasts a breakeven period of approximately 24 months, allowing franchisees to recover their initial investments relatively quickly. With an investment payback timeframe of just 12 months, this franchise model provides a promising financial outlook for new franchisees looking to achieve profitability.
Franchise Growth
The franchise has demonstrated a steady presence in the market, with 153 franchised units in 2015, slightly declining to 121 by 2017. This trend indicates a competitive landscape, but also reflects the ongoing demand for garage door services. Understanding market dynamics and positioning will be essential for new franchisees aiming to capture market share.
Corporate Support
Sears Garage Door franchisees benefit from robust corporate support, including training, marketing resources, and operational guidance. This support is vital for new franchisees, particularly those transitioning from different industries. With a strong corporate backing, franchisees can leverage established systems to enhance their business operations and customer service.
Frequently Asked Questions
The initial investment for a Sears Garage Door franchise ranges from $29,150 to $97,350, including the franchise fee, equipment, and other startup costs.