For these franchises. Typically, these spaces require few leasehold improvements compared to a customer-facing retail space. So what can you expect the investment costs to be for each of these options for a single unit or territory? Although it isn’t definitive (there are always exceptions), common ranges are: Brick-and-mortar: $250,000+ Service-based brands: under $300,000 2. Ramp-up time Ramp-up time goes hand-in-hand with investment costs. The time it takes to ramp up to a monthly positive cash flow and establish repeat business both indicate important benchmarks for any sustainable business. In terms of speed, service-based brands are more Let’s consider a moving service brand. Once you have the equipment and employees in place, the month-over-month operation costs are more closely linked to revenue growth; thus, these models can often grow to cash flow more quickly.

Alternatively a brick-and-mortar brand

will have high upfront investment costs (retail space, individual stations, chairs, mirrors, hair wash/dry stations, etc.) and will likely take time to establish a strong customer base in a particular community. However, they Korea Phone Number Data tend to have more repeat business and durable income streams over time. Related: Find Out Which Brands Have Ranked on the Franchise 500 for Longest, Earning a Spot In our New ‘Hall of Fame’ 3. Scalability Brick-and-mortar businesses are typically more scalable. Once you have a single successful franchise, it’s easier to manage and build an empire by spreading costs over multiple locations. But remember, due to the costly initial investments, building costs will be similar each time you open a new location.

Phone Number Data

With a service-based brand

Rather than building more physical locations, you can expand your territory and drive more penetration within your territories. While this isn’t without additional costs (consider gas money, employees to keep up with IT Numbers demand, more frequent equipment maintenance, etc.), it requires incremental investments since your revenue justifies it and creates economies of scale. By purchasing additional territories in a service-based brand, you scale your revenue and income multiplier without the same proportional increase in capital investment.

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