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Tailored Living Franchise ProfileHome Based Franchises > Home Repair Services |
What is the Initial Investment for a Tailored Living Franchise?
To open a Tailored Living franchise, you should expect an initial investment ranging from $184,470 to $297,825. This includes a franchise fee of $19,950. Additionally, you will need to have cash available between $200,000 and $325,000, along with a net worth in the same range. Understanding these financial requirements is crucial for potential franchisees to assess their readiness for this business opportunity.
What are the Ongoing Fees Associated with Tailored Living?
Tailored Living franchisees are required to pay a royalty fee of 6% on gross sales, as well as a marketing fee of 1%. These ongoing fees are essential for maintaining brand support and marketing efforts, helping franchisees to drive sales and grow their businesses. Being aware of these costs will help you plan your budget effectively and ensure long-term profitability.
What is the Average Revenue Potential for Tailored Living Franchisees?
The average annual revenue per unit for a Tailored Living franchise is $588,139, with a median revenue of $363,627. However, revenues can vary significantly, with the lowest reported annual revenue at $65,963 and the highest at $9,470,271. This broad range indicates that while there is strong income potential, individual performance will depend on various factors including location, management, and market demand.
How Quickly Can You Expect to Break Even with a Tailored Living Franchise?
Franchisees can expect to break even within approximately 12 months of operation. The investment payback period is around 24 months, making it a relatively quick return on investment compared to other franchise models. Understanding the timeline for recouping your initial investment can help you plan your financial strategy and set realistic expectations for your business journey.
Tailored Living 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:
Tailored Living 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 | 160 | 156 | 155 |
| Net Change YoY | -4 | -1 | |
| Franchised Units | 160 | 156 | 155 |
| Net Change YoY | -4 | -1 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Tailored Living franchise requires a low initial investment ranging from $184,470 to $297,825. This includes a franchise fee of $19,950, making it accessible for aspiring entrepreneurs looking to enter the home organization and improvement market.
Financial Requirements
To qualify for a Tailored Living franchise, candidates need a cash requirement of $200,000 to $325,000 and a net worth of the same amount. These financial prerequisites ensure that franchisees have the necessary resources to launch and sustain their business effectively.
Revenue Potential
Tailored Living franchises have shown promising revenue figures, with an average annual revenue per unit of $588,139. The median annual revenue stands at $363,627, demonstrating a strong earning potential for franchise owners in this industry.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 12 months of operation, with an investment payback period of approximately 24 months. This timeline highlights the franchise's potential for generating returns relatively quickly, appealing to investors seeking efficient profitability.
Franchise Growth
As of 2020, Tailored Living has maintained a stable presence with 155 franchised units, showing slight growth over the years. This consistency indicates a solid brand foundation and ongoing demand for home organization services.
Operating Expenses
The average operating expenses for Tailored Living franchises are significant, totaling around $4,108,725 annually. This includes costs related to selling, advertising, and administrative functions, which franchisees must manage to optimize their profitability.
Frequently Asked Questions
The initial investment for a Tailored Living franchise ranges from $184,470 to $297,825, which includes the franchise fee and other startup costs.