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Zoup! Franchise ProfileFood Franchises > Casual Dining |
What Are the Initial Investment Requirements for a Zoup! Franchise?
To open a Zoup! franchise, you should expect an initial investment ranging from $509,434 to $699,050. This includes a franchise fee of $35,000. Additionally, you will need to maintain a cash reserve within the same range and meet a net worth requirement between $500,000 and $1,000,000. Understanding these financial commitments is crucial to ensure you are prepared for the journey ahead.
What Are the Ongoing Fees Associated with a Zoup! Franchise?
As a Zoup! franchisee, you will be responsible for a royalty fee of 6% on your gross sales and a marketing fee of 3%. These ongoing fees are essential for maintaining brand standards and supporting national marketing efforts. Being aware of these costs will help you budget effectively and manage your franchise's financial health.
What Is the Average Revenue Potential for a Zoup! Franchise?
Zoup! franchises have an average annual revenue of approximately $455,805, with a median revenue of $461,094. The revenue can vary significantly, with the lowest annual revenue recorded at $125,734 and the highest reaching $1,085,143. This range highlights the potential for profitability but also underscores the importance of location and management in achieving financial success.
What Is the Expected Timeline for Return on Investment with a Zoup! Franchise?
Franchisees can expect to break even within approximately 12 months of opening their Zoup! location, with an investment payback period of around 24 months. This timeline can vary based on various factors, including operational efficiency and market conditions. Understanding these timelines can help you set realistic financial goals and expectations as you embark on your franchise journey.
Zoup! 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:
Zoup! 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 | 74 | 66 | 63 |
| Net Change YoY | -8 | -3 | |
| Franchised Units | 68 | 63 | 62 |
| Net Change YoY | -5 | -1 | |
| Corporate Units | 6 | 3 | 1 |
| Net Change YoY | -3 | -2 |
Initial Investment
The Zoup! franchise requires an initial investment ranging from $509,434 to $699,050. This includes a franchise fee of $35,000, ensuring that franchisees are well-equipped with the necessary resources and support to launch their business successfully.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 6% of gross sales, along with a marketing fee of 3%. These fees contribute to the ongoing support and brand development provided by Zoup!, helping franchisees maintain a competitive edge in the market.
Financial Performance
Zoup! units have demonstrated strong financial performance, with an average annual revenue of $455,805 and a median of $461,094 per unit. This financial stability is further underscored by a breakeven time of just 12 months and an investment payback period of 24 months.
Franchise Growth
The Zoup! franchise has seen a slight decline in the number of franchised units, from 68 in 2020 to 62 in 2022. Despite this, the brand continues to focus on optimizing existing locations and enhancing franchisee support to drive future growth.
Corporate Structure
Zoup! operates a hybrid model with both franchised and corporate-owned units. As of 2022, there were 62 franchised units and only 1 corporate unit, indicating a strong focus on franchise development and support.
Commitment to Quality
Zoup! is dedicated to providing high-quality, fresh soups, salads, and sandwiches. The brand emphasizes the use of quality ingredients and exceptional customer service, ensuring that each dining experience is memorable and aligned with their commitment to excellence.
Frequently Asked Questions
The initial investment for a Zoup! franchise ranges from $509,434 to $699,050. This includes the initial franchise fee of $35,000, as well as other startup costs such as equipment and leasehold improvements.