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UBuildIt Franchise ProfileHome Based Franchises > Home Repair Services |
What Are the Initial Investment Requirements for a UBuildIt Franchise?
To open a UBuildIt franchise, you should prepare for an initial investment ranging from $90,400 to $196,500. This includes a franchise fee of $35,000, along with additional costs for equipment, setup, and working capital. It’s essential to have a net worth between $200,000 and $500,000 to qualify, ensuring you can cover both initial and ongoing expenses. This financial readiness is crucial for a successful start in the franchise business.
What Are the Ongoing Fees Associated with UBuildIt?
As a UBuildIt franchisee, you will be responsible for ongoing fees that include a royalty fee of 3% of your gross sales, along with a marketing fee of 3%. These fees are essential for supporting the brand’s marketing efforts and maintaining operational standards. Understanding these costs upfront will help you plan your budget and ensure that your franchise remains profitable over time.
What Is the Average Revenue Potential for UBuildIt Franchisees?
The average annual revenue per UBuildIt unit is approximately $134,000, with the potential for higher earnings depending on location and management. Some franchisees report annual revenues as high as $822,946, demonstrating significant earning potential. However, it’s important to consider that revenues can vary widely, with the lowest reported at $10,000. This variability underscores the importance of effective business strategies and local market conditions.
How Quickly Can You Expect to Break Even with a UBuildIt Franchise?
Franchisees can typically expect to break even within 12 months of opening their UBuildIt location. With an investment payback period of around 24 months, this timeline indicates a relatively quick return on investment compared to other franchise models. Proper financial planning and operational efficiency will be key to achieving these milestones and ensuring long-term profitability.
UBuildIt 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:
UBuildIt Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 78 | 72 | 76 |
| Net Change YoY | -6 | 4 | |
| Franchised Units | 63 | 57 | 61 |
| Net Change YoY | -6 | 4 | |
| Corporate Units | 15 | 15 | 15 |
| Net Change YoY | 0 | 0 |
Initial Investment
The UBuildIt franchise requires an initial investment ranging from $90,400 to $196,500, making it accessible for aspiring entrepreneurs. This investment includes a franchise fee of $35,000, which contributes to the training and support provided by the franchisor.
Financial Performance
Franchisees can expect an average annual revenue of approximately $134,000 per unit, with the potential for higher earnings. The highest recorded annual revenue per unit is $822,946, showcasing the revenue-generating potential within this franchise model.
Royalty and Marketing Fees
UBuildIt franchisees are required to pay a royalty fee of 3% of gross sales along with a marketing fee of 3%. These fees contribute to ongoing support and brand promotion, ensuring franchisees benefit from collective marketing efforts.
Breakeven and Payback Period
Franchisees typically reach their breakeven point within 12 months of operation, with an investment payback period of approximately 24 months. This timeline indicates a relatively quick return on investment, making UBuildIt an attractive option for new business owners.
Franchise Growth
Since 2017, UBuildIt has maintained a steady presence in the market, with a total of 63 franchised units in 2017, 57 in 2018, and 61 in 2019. This stable growth demonstrates the brand's resilience and potential for expansion in the franchise sector.
Required Financial Qualifications
To qualify for a UBuildIt franchise, prospective franchisees must have a net worth between $200,000 and $500,000. This requirement ensures that franchisees have the financial stability to support their business and navigate the initial investment phase effectively.
Frequently Asked Questions
The initial investment for a UBuildIt franchise ranges from $90,400 to $196,500, which includes the franchise fee and other startup costs.