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Crushr Franchise ProfileIndustrial Franchises > Industrial Cleaning |
What Are the Initial Investment Requirements for a Crushr Franchise?
To open a Crushr franchise, you should be prepared for a total initial investment that ranges from $136,000 to $390,050. This includes a franchise fee of $49,500. Additionally, you need to have a cash reserve of at least $136,000 and a net worth between $300,000 and $500,000. These financial prerequisites ensure that you have the necessary capital to launch and sustain your business in the early stages.
What Are the Ongoing Fees and Financial Expectations?
As a Crushr franchisee, you will be subject to an ongoing royalty fee of 8% of your gross sales, along with a marketing fee of 1%. It's essential to budget for these fees as they contribute to the overall operational costs. The average annual revenue per unit is approximately $102,000, with a median revenue of $227,769, providing a solid financial foundation for your investment.
What Is the Average Performance of Crushr Units?
The performance of Crushr franchises shows promising revenue potential. The highest annual revenue recorded for a unit is $1,011,640, while the lowest is $57,766. The average annual revenue across units is about $5,747,744, with a gross profit margin of 62.8%. Understanding these figures can help you gauge the profitability of your investment and set realistic financial goals.
What Is the Breakeven and Payback Timeline for Franchisees?
New Crushr franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at around 10 months, making it a relatively quick turnaround compared to many other franchise opportunities. This timeline is crucial for planning your financial strategy and assessing the viability of your franchise venture.
Crushr 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:
Crushr 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 | 5 | 15 | 26 |
| Net Change YoY | 10 | 11 | |
| Franchised Units | 4 | 14 | 25 |
| Net Change YoY | 10 | 11 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Crushr franchise offers a low to high initial investment range of $136,000 to $390,050. This encompasses the franchise fee of $49,500, which is essential for accessing the brand's resources and support. Potential franchisees should also consider the cash required to comfortably cover startup costs and initial operational expenses.
Financial Performance
Average annual revenue per unit for Crushr stands at approximately $102,000, with a median revenue of $227,769. This performance indicates a strong potential for profitability, especially considering the highest annual revenue reported at $1,011,640. Franchisees can expect a breakeven time of around 12 months, with an investment payback period of just 10 months.
Ongoing Fees
Franchisees are required to pay an 8% royalty fee on gross sales, along with a 1% marketing fee. These fees contribute to ongoing support and brand promotion, enabling franchisees to benefit from collective marketing efforts and operational guidance.
Franchise Growth
Crushr has shown consistent growth in its franchised units, expanding from 4 units in 2020 to 25 units by 2022. This growth trajectory highlights the brand's increasing popularity and market presence, providing a promising opportunity for new franchisees to join a thriving network.
Corporate Structure
Crushr operates under a structured corporate framework, maintaining one corporate-owned unit since its inception. This stability allows for a centralized support system for franchisees, ensuring they receive the necessary training and resources to succeed in their business ventures.
Operational Insights
The average operating expenses for a Crushr unit total approximately $1,024,522 annually. Key expenses include labor, insurance, and administrative costs. Understanding these financial metrics is crucial for franchisees to manage their operations effectively and maximize profitability.
Frequently Asked Questions
The initial investment for a Crushr franchise ranges from $136,000 to $390,050. This includes the franchise fee of $49,500 and other startup costs.