Uptown Cheapskate Franchise Prices, Charges, Revenues, Earnings (2023 Evaluation)

On this unique Franchise Chatter FDD Speak submit, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for an Uptown Cheapskate franchise, based mostly on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising and marketing payment for an Uptown Cheapskate franchise, based mostly on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Uptown Cheapskate shops at first of the yr and the tip of the yr for 2019, 2020, and 2021, based mostly on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Uptown Cheapskate franchise alternative

Part V – Presentation and evaluation of Uptown Cheapskate’s monetary efficiency representations (common revenues and/or earnings), based mostly on Merchandise 19 of the corporate’s 2022 FDD, together with data on the:

• fiscal yr 2021 common gross sales, value of products bought, gross revenue, franchise royalty, administration, facility, advertising and marketing, gross sales expense, labor, complete bills, and web earnings for the 84 franchisees whose Uptown Cheapskate shops operated in the US throughout the interval of November 1, 2020 by way of October 31, 2021

Part VI – Key ratios, comparables, computations, and analyses for the Uptown Cheapskate franchise alternative (unique content material for Platinum subscribers)

Part I – Uptown Cheapskate Franchise Prices

• Preliminary Franchise Price:  $25,000
• Journey and Dwelling Bills Whereas Coaching:  $2,000 to $5,000
• Actual Property Deposit, Enhancements:  $15,000 to $115,000
• Exterior Indicators and Graphics:  $8,400 to $16,800
• Inside Indicators:  $4,000 to $6,000
• Commerce Fixtures, Hangers:  $95,040 to $118,800
• Computer systems, Scanners, Money Drawers, Printers, Credit score Card Machines, Routers, Cables, iPads, TV, and so on.:  $15,239
• BaseCamp Software program Suite (which incorporates IMAP, Baseline point-of-sale, and “Q” software program):  $10,000
• Safety Digital camera System:  $1,800 to $6,000
• Grand Opening Promotion:  $20,000 to $25,000
• Opening Stock:  $48,000 to $65,000
• Incorporation Paperwork:  $500 to $1,000
• Mortgage Charges:  $3,500 to $8,500
• Licenses, Permits, Utility Deposits:  $1,000 to $2,000
• Provides, Miscellaneous Bills:  $6,000 to $9,600
• Pre-Opening Working Capital:  $48,000 to $60,600
• Extra Working Capital for 3 Months:  $42,000 to $54,000
• Complete Estimated Uptown Cheapskate Franchise Prices:  $345,479 to $543,539

Part II – Uptown Cheapskate’s Preliminary Franchise Price, Royalty Price, and Advertising Price

• Franchise Price:  $20,000 to $25,000
• Royalty:  for 1 retailer: 5% of product sales; for two or extra shops: 4.5% of product sales (applies to a number of Uptown Cheapskate and/or Child to Child shops which might be producing gross sales)
• Advertising Fund:  0.5% of product sales
• Promoting Expenditure:  the better of 5% of product sales or $2,000 per thirty days (along with grand opening, reopening, relocation, and switch retailer expenditures, and Advertising Fund Price)
• Cooperative Charges:  4% of product sales with a month-to-month minimal of $2,000 and most of $5,000

Part III – Variety of Franchised and Firm-Owned Uptown Cheapskate Retailers

Franchised

2019

• Retailers on the Begin of the 12 months:  67
• Retailers on the Finish of the 12 months:  67
• Web Change:  0

2020

• Retailers on the Begin of the 12 months:  67
• Retailers on the Finish of the 12 months:  79
• Web Change:  +12

2021

• Retailers on the Begin of the 12 months:  79
• Retailers on the Finish of the 12 months:  83
• Web Change:  +4

Firm-Owned

2019

• Retailers on the Begin of the 12 months:  3
• Retailers on the Finish of the 12 months:  5
• Web Change:  +2

2020

• Retailers on the Begin of the 12 months:  5
• Retailers on the Finish of the 12 months:  6
• Web Change:  +1

2021

• Retailers on the Begin of the 12 months:  6
• Retailers on the Finish of the 12 months:  13
• Web Change:  +7

Part IV – Information Updates on the Uptown Cheapskate Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Uptown Cheapskate Franchise (Merchandise 19, 2022 FDD)

• The next charts had been compiled from unaudited monetary stories (utilizing the accrual foundation) submitted to Uptown Cheapskate from 84 franchisees whose shops operated in the US throughout the interval of November 1, 2020 by way of October 31, 2021.

• Of the 84 shops, 77 had been in operation for 12 months and seven had been in operation for a median of 5.86 months (for which month-to-month numbers have been annualized).

• Shops have been separated into quartiles by product sales.

• Uptown Cheapskate’s research measured its franchisees’ efficiency in quite a lot of totally different markets.

Half 1 – Common Revenue and Loss Statements, by Quartile

First Quartile 2021 (Consisting of 21 Models Working from November 1, 2020 by way of October 31, 2021)

Gross sales:  $1,563,885 (100%)

Value of Items Offered:  $570,169 (36%)

Gross Revenue:  $993,716 (64%)

Bills

• Franchise Royalty:  $68,781 (4.4%)
• Administration:  $49,501 (3.2%)
• Facility:  $150,810 (9.6%)
• Advertising:  $60,338 (3.9%)
• Gross sales Expense:  $7,618 (0.5%)
• Labor:  $284,619 (18.2%)
• Complete Expense:  $621,667 (39.8%)

Web Revenue:  $372,049 (23.8%)

Second Quartile 2021 (Consisting of 21 Models Working from November 1, 2020 by way of October 31, 2021)

Gross sales:  $1,189,083 (100%)

Value of Items Offered:  $420,411 (35%)

Gross Revenue:  $768,672 (65%)

Bills

• Franchise Royalty:  $51,629 (4.3%)
• Administration:  $39,162 (3.3%)
• Facility:  $134,818 (11.3%)
• Advertising:  $57,760 (4.9%)
• Gross sales Expense:  $6,520 (0.5%)
• Labor:  $231,458 (19.5%)
• Complete Expense:  $521,346 (43.8%)

Web Revenue:  $247,326 (20.8%)

Third Quartile 2021 (Consisting of 21 Models Working from November 1, 2020 by way of October 31, 2021)

Gross sales:  $936,010 (100%)

Value of Items Offered:  $325,056 (35%)

Gross Revenue:  $610,954 (65%)

Bills

• Franchise Royalty:  $43,011 (4.6%)
• Administration:  $32,859 (3.5%)
• Facility:  $119,199 (12.7%)
• Advertising:  $46,486 (5.0%)
• Gross sales Expense:  $4,450 (0.5%)
• Labor:  $177,436 (19.0%)
• Complete Expense:  $423,441 (45.2%)

Web Revenue:  $187,514 (20.0%)

Fourth Quartile 2021 (Consisting of 21 Models Working from November 1, 2020 by way of October 31, 2021)

Gross sales:  $646,242 (100%)

Value of Items Offered:  $226,755 (35%)

Gross Revenue:  $419,487 (65%)

Bills

• Franchise Royalty:  $29,646 (4.6%)
• Administration:  $27,247 (4.2%)
• Facility:  $97,832 (15.1%)
• Advertising:  $41,135 (6.4%)
• Gross sales Expense:  $4,622 (0.7%)
• Labor:  $128,439 (19.9%)
• Complete Expense:  $328,921 (50.9%)

Web Revenue:  $90,566 (14.0%)

Common of 4 Quartiles in 2021

Gross sales:  $1,083,805 (100.0%)

Value of Items Offered:  $385,598 (35.6%)

Gross Revenue:  $698,207 (64.4%)

Bills

• Franchise Royalty:  $48,267 (4.5%)
• Administration:  $37,192 (3.4%)
• Facility:  $125,665 (11.6%)
• Advertising:  $51,430 (4.7%)
• Gross sales Expense:  $5,802 (0.5%)
• Labor:  $205,488 (19.0%)
• Complete Expense:  $473,844 (43.7%)

Web Revenue:  $224,363 (20.7%)

• Gross sales: Gross sales much less returns and reductions.

• Value of Items Offered: Consists of shrinkage (lack of product as a consequence of theft, donations, and so on.)

• Administration: Consists of insurance coverage, bank card processing charges, unhealthy debt, financial institution prices, checking account charges, donations, gear lease, gear repairs, licenses, dues, workplace provides, payroll processing charges, property tax, safety, coaching expense, and journey expense.

• Franchise Royalty: Quantity doesn’t match gross sales due to a number of retailer low cost, and prices for one month are paid within the following month.

• Lease: Lease, repairs, ancillary prices, utilities.

• Gross sales Expense: Luggage, tags, and associated provides.

• Labor: Wages, taxes, advantages, not together with any compensation acquired by proprietor.

• Web Revenue: Revenue earlier than curiosity, taxes, depreciation, amortization, and proprietor’s compensation.

• Some shops have earned these quantities. Your outcomes are prone to differ. There isn’t a assurance that you’ll earn as a lot.

Part VI – Uptown Cheapskate Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️