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Zoom Drain Franchise ProfileHome Services Franchises > Plumbing |
What Are the Initial Investment Requirements for a Zoom Drain Franchise?
To become a Zoom Drain franchisee, you should be prepared for an initial investment that ranges from $227,802 to $528,046. This includes a franchise fee of $49,500. Additionally, you will need to have liquid cash available between $227,802 and $428,546. It's essential to ensure that you meet the net worth requirement, which is set between $500,000 and $1,000,000, to qualify for franchise ownership.
What Are the Financial Performance Metrics for a Zoom Drain Franchise?
Zoom Drain franchises have shown promising financial performance, with an average annual revenue of approximately $1,969,186 per unit. The median annual revenue stands at $1,746,863, highlighting the potential for profitability. Franchisees can expect a breakeven time of around 18 months, with an investment payback period of about 33 months. These metrics indicate a robust financial outlook for potential investors.
What Ongoing Fees Should You Expect as a Zoom Drain Franchisee?
As a Zoom Drain franchisee, you will be responsible for ongoing fees, including a royalty fee of 6% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing initiatives that drive customer traffic to your franchise. Understanding these fees will help you budget effectively and plan for long-term financial success.
How Has Zoom Drain's Franchise Growth Evolved Recently?
Zoom Drain has experienced significant growth in its franchised units over the past few years. In 2020, there were 12 franchised locations, which increased to 17 in 2021 and jumped to 51 in 2022. This upward trend indicates a strong demand for the brand and a growing franchise network, making it an attractive opportunity for aspiring entrepreneurs looking to enter a thriving market.
Zoom Drain 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:
Zoom Drain 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 | 15 | 20 | 54 |
| Net Change YoY | 5 | 34 | |
| Franchised Units | 12 | 17 | 51 |
| Net Change YoY | 5 | 34 | |
| Corporate Units | 3 | 3 | 3 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Zoom Drain franchise offers a range of investment options, with an initial investment ranging from $227,802 to $528,046. The franchise fee is set at $49,500, and franchisees can expect ongoing royalty fees of 6% and a marketing fee of 2%. To ensure financial stability, a cash requirement of $227,802 to $428,546 and a net worth requirement of $500,000 to $1,000,000 are also necessary for prospective franchisees.
Financial Performance
Zoom Drain units demonstrate strong financial potential, with average annual revenue reaching $1,969,186 and a median of $1,746,863. Revenue figures vary significantly, with the lowest annual revenue recorded at $167,108 and the highest at $5,618,721. The franchise boasts a breakeven time of approximately 18 months and an investment payback period of around 33 months, indicating a favorable return on investment for franchisees.
Unit Growth
The growth trajectory of Zoom Drain is impressive, with a significant increase in franchised units over the past few years. In 2020, there were 12 franchised units, which grew to 17 in 2021, and surged to 51 in 2022. This rapid expansion reflects the brand's increasing popularity and market acceptance, providing new franchisees with a robust support system and established operational frameworks.
Corporate Structure
Zoom Drain operates under a corporate structure that includes both franchised and company-owned units. As of 2022, there are 51 franchised units and 3 corporate units, reflecting a balanced approach to growth. This structure enables the company to maintain quality control and operational consistency across all locations, ensuring that franchisees benefit from established best practices and support.
Operational Insights
The average profit and loss metrics for Zoom Drain reveal a gross profit margin of 69.6%, with operating expenses accounting for 51.2% of revenue. This leaves franchisees with an EBITDA of 18.7%, highlighting the potential for profitability. Key operational expenses include payroll, which is the largest expense category, followed by costs related to franchisee support and professional fees, ensuring that franchisees receive the necessary resources for success.
Franchisee Support
Zoom Drain is committed to providing comprehensive support to its franchisees. This includes ongoing training, marketing assistance, and operational guidance to help franchisees navigate challenges and optimize performance. The franchise also emphasizes the importance of franchisee coaching, ensuring that owners are well-equipped to manage their units effectively and achieve their financial goals.
Frequently Asked Questions
The initial investment for a Zoom Drain franchise ranges from $227,802 to $528,046, which includes the franchise fee of $49,500 and other startup costs.