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The Dailey Method Franchise ProfileFitness Franchises > Specialty Fitness Classes |
Overview of The Dailey Method Franchise
The Dailey Method franchise offers a unique blend of barre, yoga, and cycle classes, focusing on strength, flexibility, and endurance. With a low initial investment ranging from $274,550 to $992,400, potential franchisees can tap into a growing fitness market. The franchise fee is set at $35,000, with ongoing royalty and marketing fees of 6% and 1%, respectively. This model provides a solid foundation for those looking to invest in a health and wellness brand that emphasizes community and personal growth.
Financial Performance of The Dailey Method
The average annual revenue per unit for The Dailey Method is approximately $242,726, with a median of $241,643. Franchisees can expect a breakeven time of around 12 months, making this an attractive option for those seeking a quicker return on investment. However, it's essential to note that the highest annual revenue reported is $1,479,706, highlighting the potential for significant earnings with effective management and marketing strategies.
Investment Requirements for Franchisees
Aspiring franchisees of The Dailey Method should prepare for a cash requirement between $274,550 and $639,400, alongside a net worth requirement of $300,000 to $600,000. These financial metrics are crucial for ensuring that franchisees have the necessary resources to establish and grow their business. Understanding these requirements will help potential investors assess their readiness for this franchise opportunity.
Growth and Support from The Dailey Method
The Dailey Method has shown steady growth, with 51 franchised units in 2015 and a peak of 61 in 2016. The franchise provides comprehensive support to its franchisees, including training, marketing, and operational guidance. This ongoing support is vital for franchisees, especially those new to the fitness industry, as it helps them navigate challenges and optimize their business performance effectively.
The Dailey Method 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:
The Dailey Method 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 | 55 | 61 | 55 |
| Net Change YoY | 6 | -6 | |
| Franchised Units | 51 | 57 | 53 |
| Net Change YoY | 6 | -4 | |
| Corporate Units | 4 | 4 | 2 |
| Net Change YoY | 0 | -2 |
Investment Overview
The Dailey Method franchise offers a range of investment options, with initial costs ranging from $274,550 to $992,400. The franchise fee is set at $35,000, while ongoing royalties are 6% of gross sales, complemented by a 1% marketing fee. To start a franchise, potential owners should have liquid cash available between $274,550 and $639,400, and a net worth of $300,000 to $600,000 is required.
Revenue Potential
Franchisees can expect an average annual revenue of $242,726, with a median revenue of $241,643 per unit. Revenue performance varies significantly, with the lowest annual revenue reported at $56,923 and the highest at $1,479,706. This variability underscores the importance of location and operational management in achieving financial success.
Operating Performance
The Dailey Method has reported total operating expenses of $954,473 per unit, which accounts for 393.6% of revenue. This high operating cost highlights the need for careful financial management and strategic planning to maintain profitability. The franchise's EBITDA stands at -$63,952, reflecting the challenges faced in controlling expenses relative to income.
Breakeven and Payback
Franchisees can anticipate a breakeven period of approximately 12 months. This timeline is crucial for new investors, as it indicates the speed at which they can recover their initial investment and start generating profit. The investment payback period aligns with this, also estimated at 12 months, making it an attractive opportunity for those looking for quicker returns.
Franchise Growth
Since its inception, The Dailey Method has shown consistent growth in franchised units, with 51 units in 2015, increasing to 57 in 2016, and slightly declining to 53 in 2017. The presence of 4 corporate units in both 2015 and 2016, and a decrease to 2 in 2017, suggests a shift towards franchising as a primary growth strategy.
Brand Identity
The Dailey Method is recognized for its unique approach to fitness, combining elements of ballet, Pilates, and strength training. This distinctive methodology not only sets it apart in the crowded fitness industry but also appeals to a diverse clientele seeking a holistic approach to wellness. The brand's identity is built around community, empowerment, and a commitment to helping individuals achieve their fitness goals.
Frequently Asked Questions
The initial investment for a The Dailey Method franchise ranges from $274,550 to $992,400, which includes the franchise fee, equipment, and other startup costs.