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Western Sizzlin Steak & More Franchise ProfileFood Franchises > Casual Dining |
What is the Initial Investment for a Western Sizzlin Steak & More Franchise?
To open a Western Sizzlin Steak & More franchise, the initial investment ranges from $451,000 to $4,500,000. This includes a franchise fee of $30,000. Prospective franchisees should also prepare for ongoing costs, such as a royalty fee of 2% and a marketing fee of 1.25%. It's essential to have cash available between $30,000 and $4,500,000 and meet the net worth requirement of $500,000 to $1,500,000 to ensure financial readiness for this venture.
What Are the Average Revenues for a Western Sizzlin Steak & More Franchise?
Western Sizzlin Steak & More franchises generate impressive revenue figures, with an average annual revenue per unit of approximately $1,296,154. The median annual revenue is around $1,250,000, while revenues can vary, with the lowest at $900,000 and the highest reaching $2,500,000. This financial performance highlights the brand's potential for profitability, making it an attractive option for aspiring franchisees.
What Are the Expected Financial Metrics for Franchisees?
Franchisees can expect a gross profit margin of about 70%, translating to a gross profit of approximately $1,050,000 based on average annual revenue. Operating expenses are estimated at $750,000, which means franchisees could achieve an EBITDA of around $300,000, or 20% of total revenue. This financial structure indicates a solid opportunity for franchisees to manage costs effectively while maximizing profitability.
How Long Does it Take to Break Even with a Western Sizzlin Steak & More Franchise?
Franchisees can anticipate a breakeven period of about 24 months. This timeline is crucial for potential investors, as it provides a clear understanding of when they can start seeing a return on their investment. With an investment payback period also set at 24 months, franchisees can plan their financial strategies accordingly and gauge the viability of their franchise operation in the competitive restaurant industry.
Western Sizzlin Steak & More 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:
Western Sizzlin Steak & More Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 60 | 54 | 53 |
| Net Change YoY | -6 | -1 | |
| Franchised Units | 59 | 53 | 52 |
| Net Change YoY | -6 | -1 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Company Background
Western Sizzlin Steak & More is a well-established franchise chain specializing in quality steak and American cuisine. With a history spanning several decades, Western Sizzlin has developed a loyal customer base by offering a diverse menu that includes grilled steaks, seafood, and a variety of sides. The brand prides itself on providing a family-friendly dining experience, focusing on fresh ingredients and exceptional service across its locations.
Franchise Opportunity
Becoming a franchisee with Western Sizzlin Steak & More presents a lucrative opportunity for aspiring entrepreneurs. With a relatively low initial investment ranging from $451,000 to $4,500,000 and a franchise fee of $30,000, this franchise model is designed for individuals looking to enter the restaurant industry. The brand’s proven business model and strong support system equip franchisees with the tools needed for success.
Corporate Structure
Western Sizzlin is operated by Western Sizzlin Corporation, which oversees the franchise operations and provides ongoing support to franchisees. The corporation maintains a commitment to quality and consistency in its offerings, ensuring that each franchise location adheres to the brand’s standards. This centralized structure allows for efficient communication and resource sharing among franchise units.
Royalties
Franchisees of Western Sizzlin are required to pay a royalty fee of 2% of gross sales, along with a marketing fee of 1.25%. These fees contribute to the brand’s marketing efforts and ongoing support for franchisees, helping to drive customer traffic and enhance brand recognition. This financial structure allows franchisees to benefit from collective advertising and promotional strategies.
Financial Performance
On average, Western Sizzlin units generate annual revenues of approximately $1,296,154. With a gross profit margin of 70%, franchisees can expect a healthy return on investment. The average operating expenses amount to $750,000, allowing for an EBITDA margin of 20%. Understanding these financial metrics is crucial for potential franchisees to evaluate the profitability of their investment.
Investment Requirements
To become a franchisee with Western Sizzlin, candidates must demonstrate a net worth of $500,000 to $1,500,000. Additionally, a cash requirement of $30,000 to $4,500,000 is essential for covering initial investment costs. With a breakeven time of approximately 24 months, franchisees can anticipate a relatively quick return on their investment, making this opportunity appealing for those seeking stability in the restaurant industry.
Frequently Asked Questions
The initial investment for a Western Sizzlin Steak & More franchise ranges from $451,000 to $4,500,000, which includes the franchise fee and other start-up costs.