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Sunbelt Business Brokers Franchise ProfileConsultant & Business Brokers > Mergers & Acquisitions |
Initial Investment for Sunbelt Business Brokers Franchise
The initial investment to start a Sunbelt Business Brokers franchise ranges from $43,450 to $105,500. This includes a franchise fee of $39,500. Potential franchisees should also be prepared for ongoing costs such as a 4% royalty fee and a 4% marketing fee. Having between $44,950 and $105,500 in cash is essential to cover these initial expenses.
Financial Performance Overview
Sunbelt Business Brokers franchises have shown promising financial performance, with an average annual revenue of approximately $860,995 per unit. The breakeven time is estimated at 12 months, and the investment payback period averages around 11 months. This indicates a potentially quick return on investment for diligent franchisees.
Required Financial Qualifications
To qualify for a Sunbelt Business Brokers franchise, potential franchisees must have a net worth between $500,000 and $1,500,000. This financial requirement ensures that franchisees have the necessary resources to support their business operations and withstand initial startup challenges.
Franchise Growth and Stability
Sunbelt Business Brokers has demonstrated stability and growth in its franchise network, with 120 franchised units in 2023, up from 116 in 2022. The presence of one corporate unit indicates the company's commitment to its franchisees and provides a model for operational success. This growth trend suggests a strong brand presence and a supportive franchise system.
Sunbelt Business Brokers 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:
Sunbelt Business Brokers Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 118 | 116 | 120 |
| Net Change YoY | -2 | 4 | |
| Franchised Units | 118 | 116 | 120 |
| Net Change YoY | -2 | 4 | |
| Corporate Units | 0 | 1 | 1 |
| Net Change YoY | 1 | 0 |
Investment Overview
The Sunbelt Business Brokers franchise offers a low initial investment ranging from $43,450 to $105,500, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $39,500, with ongoing royalty and marketing fees of 4% each. To get started, potential franchisees need a cash requirement between $44,950 and $105,500, and a net worth of $500,000 to $1,500,000.
Revenue Potential
Franchisees can expect substantial revenue, with an average annual revenue per unit reported at $860,994. This figure reflects the strong earning potential of the franchise, supported by consistent performance metrics that indicate a solid market presence and operational efficiency.
Breakeven and Payback
The breakeven time for a Sunbelt Business Brokers franchise is estimated at 12 months, allowing franchisees to recover their initial investment relatively quickly. Additionally, the investment payback period averages just 11 months, highlighting the franchise's potential for early profitability.
Franchise Growth
The franchise has shown steady growth over the past few years, with a total of 120 franchised units reported in 2023, up from 116 in 2022. This growth trend indicates a robust demand for the franchise model and a positive outlook for future expansion.
Financial Performance
The average profit and loss statement reveals a gross profit margin of 99.19%, demonstrating the franchise's ability to maintain high profitability despite operating expenses. Operating expenses are approximately 111.26% of revenue, which indicates a need for careful management to improve overall financial health.
Corporate Structure
Sunbelt Business Brokers operates with a unique corporate structure, distinguishing itself with a blend of franchised and corporate-owned units. As of 2023, the franchise has one corporate unit, emphasizing its focus on supporting franchisees while also maintaining a direct presence in the market.
Frequently Asked Questions
The initial investment for a Sunbelt Business Brokers franchise ranges from $43,450 to $105,500, including a franchise fee of $39,500.