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Window Gang Franchise ProfileCleaning Franchises > Commercial Cleaning |
What Are the Initial Investment Requirements for a Window Gang Franchise?
To start a Window Gang franchise, you should be prepared for an initial investment ranging from $108,200 to $148,600. This includes a franchise fee of $65,000. Additionally, you must have a net worth between $250,000 and $500,000 and liquid cash available in the same range. Understanding these financial commitments is crucial as they lay the foundation for your franchise journey.
What Are the Ongoing Fees Associated with a Window Gang Franchise?
As a Window Gang franchisee, you will incur ongoing fees that include a royalty fee of 6% of your gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing efforts. Being aware of these costs will help you plan your budget and ensure your franchise remains profitable in the long run.
What Are the Financial Performance Metrics for Window Gang Units?
The average annual revenue per Window Gang unit is approximately $95,000, with a median annual revenue of $444,220. Notably, the lowest annual revenue recorded is $298,660, while the highest reaches $728,830. This range demonstrates the potential for profitability, but also highlights the importance of effective management and operational strategies to achieve these figures.
How Quickly Can You Expect to Break Even with a Window Gang Franchise?
New Window Gang franchisees can anticipate a breakeven time of about 12 months. This quick return on investment is attractive, especially for those looking to establish a profitable business swiftly. Additionally, the investment payback period is also around 12 months, allowing franchisees to recover their initial investment in a relatively short timeframe, provided they manage their operations effectively.
Window Gang 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:
Window Gang Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 225 | 225 | 228 |
| Net Change YoY | 0 | 3 | |
| Franchised Units | 225 | 225 | 228 |
| Net Change YoY | 0 | 3 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Investment Overview
The Window Gang franchise offers a low initial investment range of $108,200 to $148,600, making it an attractive option for aspiring entrepreneurs. The initial franchise fee is set at $65,000, with ongoing royalty and marketing fees of 6% and 2%, respectively. To qualify, potential franchisees must have a cash requirement between $108,200 and $148,600 and a net worth ranging from $250,000 to $500,000.
Revenue Potential
The average annual revenue per Window Gang unit is approximately $95,000, with a median revenue significantly higher at $444,220. This indicates a strong potential for profitability, with the lowest annual revenue reported at $298,660 and the highest at $728,830. Such figures highlight the franchise's ability to generate substantial income for dedicated operators.
Breakeven and Payback
Franchisees can expect a breakeven time of around 12 months, which is relatively quick in the franchise industry. Additionally, the investment payback period is also estimated at 12 months, allowing franchisees to recover their initial investment efficiently if operations are managed effectively.
Franchise Growth
As of 2022, Window Gang has shown steady growth with a total of 228 franchised units, up from 225 in the previous two years. This consistency suggests a stable franchise model that continues to attract new franchisees, indicating a healthy demand for its services in the market.
Financial Performance
An analysis of Window Gang's financial metrics reveals that the average annual revenue stands at $12,371,650, with a cost of goods sold (COGS) of $11,953,022, resulting in a gross profit margin of 3.4%. While the operating expenses are relatively low at 4.1%, the EBITDA is slightly negative, suggesting that while revenue is generated, careful management of costs is essential for profitability.
Support and Training
Window Gang provides comprehensive support and training for its franchisees, which is crucial for their success. This includes ongoing franchise support expenses totaling $5,255,288 annually. The franchise's commitment to assisting its owners in operational and marketing strategies ensures that they are well-equipped to navigate the challenges of running a franchise and achieving long-term success.
Frequently Asked Questions
The initial investment for a Window Gang franchise ranges from $108,200 to $148,600, which includes the franchise fee of $65,000.