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WaBa Grill Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a WaBa Grill Franchise?
To open a WaBa Grill franchise, you should be prepared for an initial investment ranging from $336,000 to $572,000. This includes a franchise fee of $30,000. Additionally, you will need to demonstrate a net worth between $500,000 and $1,000,000, along with cash reserves matching your initial investment. Understanding these financial commitments is crucial to ensure you are ready for the responsibilities of franchise ownership.
What Are the Ongoing Fees Associated with WaBa Grill?
WaBa Grill franchisees are subject to ongoing fees, including a royalty fee of 5% of gross sales and a marketing fee of 3%. These fees are essential for maintaining brand presence and supporting marketing initiatives that drive customer traffic to your location. Being aware of these recurring costs will help you plan your financial strategy and ensure your franchise remains profitable.
What Is the Average Revenue Potential for a WaBa Grill Franchise?
The average annual revenue for a WaBa Grill unit is approximately $1,300,000, with some units generating as low as $1,000,000 and others reaching up to $16,383,585. With such a wide range, the revenue potential largely depends on your location, management skills, and market demand. Understanding these figures can help you gauge the financial viability of your investment and set realistic revenue expectations.
How Quickly Can You Expect to Break Even with a WaBa Grill Franchise?
WaBa Grill franchisees typically experience a breakeven period of around 12 months, with an investment payback time of approximately 18 months. This relatively quick return on investment can be appealing for aspiring franchisees, as it indicates a strong potential for profitability. However, achieving this timeline requires effective management and adherence to the brand's operational standards to maximize revenue.
WaBa Grill 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:
WaBa Grill 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 | 153 | 173 | 186 |
| Net Change YoY | 20 | 13 | |
| Franchised Units | 129 | 150 | 167 |
| Net Change YoY | 21 | 17 | |
| Corporate Units | 24 | 23 | 19 |
| Net Change YoY | -1 | -4 |
Investment Overview
WaBa Grill offers a franchise opportunity with a low initial investment ranging from $336,000 to $572,000. The initial franchise fee is set at $30,000, while ongoing royalty and marketing fees are 5% and 3% of gross sales, respectively. Potential franchisees should be prepared with a cash requirement within the same range as the initial investment and a net worth of $500,000 to $1,000,000 to qualify for ownership.
Financial Performance
The average annual revenue per WaBa Grill unit is approximately $1,300,000, with a broad range of annual revenues from $1,000,000 to $16,383,585. Franchisees can expect to reach breakeven within 12 months and achieve payback on their investment in about 18 months, making it a potentially lucrative option for aspiring entrepreneurs.
Unit Growth
WaBa Grill has demonstrated steady growth in its franchised units over recent years. In 2017, there were 129 franchised units, which increased to 150 in 2018 and further to 167 in 2019. This growth trend reflects the brand's expanding market presence and the increasing demand for its offerings.
Corporate Structure
WaBa Grill operates under WaBa Grill Franchising, Inc. The company has a mix of franchised and corporate-owned units, with 24 corporate locations in 2017, reducing to 19 by 2019. This structure allows for flexibility in operations and the ability to adapt to market changes while maintaining brand consistency.
Operational Insights
The average operating expenses for WaBa Grill are around $8,153,434, which accounts for approximately 48.5% of total revenue. Key expense categories include salaries, rent, and taxes. Understanding these costs is crucial for franchisees aiming to optimize their financial performance and manage their operations effectively.
Brand Commitment
WaBa Grill is dedicated to providing healthy, fresh, and flavorful meals inspired by Asian cuisine. The brand emphasizes quality ingredients and customer satisfaction, positioning itself as a go-to choice for health-conscious diners. This commitment to quality helps foster customer loyalty and drives repeat business.
Frequently Asked Questions
The initial investment for a WaBa Grill franchise ranges from $336,000 to $572,000, which includes the franchise fee of $30,000 and other startup costs.