Understanding the Investment
A standard franchise requires an estimated $112,750 – $191,800 to open, including the $50,000 initial franchise fee.
$152K
Avg. Total INvestment
46%
Projected ROI by Year 2
$158K
EBITDA by Year 5
$50K
Franchise Fee
Estimated Initial Investment
| Expense | Low | High |
|---|---|---|
|
Initial Franchise Fee (Core trade) |
$50,000 |
$75,000 |
|
Market Introduction Program |
$1,500 |
$3,000 |
|
Computer Systems |
$1,200 |
$2,400 |
|
Signage |
$1,000 |
$3,000 |
|
Real Estate / Rent (home or shared office) |
$0 |
$1,000 |
|
Furniture, Fixtures & Equipment |
$0 |
$3,000 |
|
Insurance |
$800 |
$1,600 |
|
Professional Fees |
$5,000 |
$15,000 |
|
Additional Funds (first 3 months) |
$50,000 |
$75,000 |
|
TOTAL |
$112,750 |
$191,800 |
5-Year Financial Projection
Projections based on the AMS operating model. Not a guarantee of results.
| Expense | Gross Sales | EBITDA | ROI |
|---|---|---|---|
|
Year 1 |
$2.0M |
$36.4K |
25.6% |
|
Year 2 |
$2.4M |
$66.1K |
46.4% |
|
Year 3 |
$2.88M |
$102.3K |
71.9% |
|
Year 4 |
$3.31M |
$157.9K |
94.5% |
|
Year 5 |
$3.64M |
|
111.0% |
*EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortization. Royalty 8% · Marketing Fund 2% · Term 10 yrs + two 5-yr renewals.
Ready to Explore the Numbers in More Detail?
Schedule a discovery call today.