|
Floyd's 99 Franchise ProfileHealth & Beauty Franchises > Hair Salons |
What is the Initial Investment for a Floyd's 99 Franchise?
To start a Floyd's 99 franchise, you will need to prepare for an initial investment that ranges from $399,500 to $762,500. This includes a franchise fee of $49,500. It's essential to ensure you have sufficient cash on hand, as the cash required falls within the same range. Additionally, having a net worth of $500,000 to $1,000,000 is a prerequisite for potential franchisees.
What Are the Financial Expectations for Floyd's 99 Franchisees?
Floyd's 99 franchisees can expect average annual revenues of approximately $963,324, with a median revenue of $924,125. While the lowest annual revenue recorded is $206,196, the highest can reach an impressive $1,832,142. Franchisees typically achieve breakeven within 12 months, and the investment payback period is also around 12 months, making it a potentially lucrative venture.
What Are the Ongoing Fees and Royalties for Floyd's 99?
Franchisees must be prepared for ongoing fees that include a royalty fee of 6% on gross sales and a marketing fee of 1.5%. These fees are crucial for maintaining brand presence and driving customer traffic. Understanding these costs is essential for budgeting and ensuring the long-term profitability of your Floyd's 99 franchise.
How Has Floyd's 99 Expanded Over the Years?
Floyd's 99 has demonstrated a steady presence in the franchise market, with a total of 85 units in 2020, which slightly decreased to 81 in 2021 and further to 79 in 2022. The number of franchised units has also seen a decline, from 5 in 2020 to 3 in 2022. Despite this, the brand maintains a significant number of corporate units, indicating a strong operational foundation and potential for growth in the franchise sector.
Floyd's 99 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:
Floyd's 99 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 | 85 | 81 | 79 |
| Net Change YoY | -4 | -2 | |
| Franchised Units | 5 | 4 | 3 |
| Net Change YoY | -1 | -1 | |
| Corporate Units | 80 | 77 | 76 |
| Net Change YoY | -3 | -1 |
Initial Investment
The Floyd's 99 franchise requires an initial investment ranging from $399,500 to $762,500. This includes a franchise fee of $49,500, which grants you access to the brand, training, and ongoing support. Understanding the full scope of the financial commitment is essential for aspiring franchisees to ensure they are adequately prepared for the start-up phase.
Ongoing Fees
Franchisees are subject to a royalty fee of 6% of gross sales, along with a marketing fee of 1.50%. These fees contribute to the overall brand development and marketing efforts that support franchisees in attracting and retaining customers. It’s important to factor these ongoing costs into your financial planning to accurately assess profitability.
Revenue Potential
Floyd's 99 units generate impressive revenue, with an average annual revenue of $963,324 and a median of $924,125. The revenue range varies significantly, with the lowest unit earning $206,196 and the highest reaching $1,832,142. This potential for high revenue underscores the brand's appeal and operational viability in the franchise market.
Breakeven and Payback Period
The breakeven time for a Floyd's 99 franchise is approximately 12 months, which indicates a relatively quick return on investment. Additionally, franchisees can expect to see their investment payback within the same timeframe, making it an attractive option for those looking to establish a profitable business swiftly.
Franchise Growth
Floyd's 99 has seen a decline in franchised units over the past few years, with 5 units in 2020, 4 in 2021, and 3 in 2022. In contrast, corporate-owned locations have remained stable, with 80 units in 2020, 77 in 2021, and 76 in 2022. This trend provides insights into the brand's growth strategy and market positioning.
Operational Insights
The average operating expenses for a Floyd's 99 unit amount to $272,596, which is about 28.3% of total revenue. Key expenses include general and administrative costs, marketing, and professional fees. Understanding these operational metrics is crucial for franchisees to manage their finances effectively and optimize profitability.
Frequently Asked Questions
The initial investment for a Floyd's 99 franchise ranges from $399,500 to $762,500, which includes the franchise fee of $49,500 and other startup costs.