Grand Welcome Franchise Prices, Charges, Revenues, Earnings (2023 Evaluate)

On this unique Franchise Chatter FDD Discuss publish, you’ll be taught the next:

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

Part II – Preliminary franchise charge, royalty charge, and advertising charge for a Grand Welcome franchise, based mostly on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Grand Welcome shops initially of the 12 months and the top of the 12 months for 2019, 2020, and 2021, based mostly on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Grand Welcome franchise alternative

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

• 2021 common variety of items managed, common each day fee, common size of keep, common month-to-month occupancy (friends solely), variety of paying reservations, common annual unit gross income for the 6 Grand Welcome shops (5 company and 1 franchised) that constantly operated throughout the whole 2021 calendar 12 months

• 2021 gross income, price of products offered, property prices, working bills and franchise charges, and internet franchise revenue for the 6 Grand Welcome shops (5 company and 1 franchised) that constantly operated throughout the whole 2021 calendar 12 months

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

Part I – Grand Welcome Franchise Prices

• Grand Welcome franchise prices, based mostly on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Franchise Charge:  $19,000 to $109,000
• Preliminary Knowledge Assortment Charge:  $500 to $2,500
• Your Coaching Bills:  $1,000 to $3,000
• Workplace Lease Deposit:  $0 to $1,000
• Workplace Furnishings, Fixtures, Gear, and Provides:  $0 to $1,500
• Licenses and Permits:  $150 to $500
• Actual Property Brokerage License:  $0 to $3,000
• Laptop Programs:  $500 to $1,500
• Car:  $0 to $3,500
• Car Graphics:  $250 to $500
• Branding and Promotional Supplies:  $250 to $750
• Skilled Charges:  $250 to $3,000
• Insurance coverage:  $1,000 to $3,000
• Working Bills/Extra Funds – 3 Months:  $15,000 to $35,000
• Whole Estimated Grand Welcome Franchise Prices:  $37,900 to $167,750

Part II – Grand Welcome’s Preliminary Franchise Charge, Royalty Charge, and Advertising Charge

• Grand Welcome’s preliminary franchise charge, royalty charge, and advertising charge, based mostly on Objects 5 and 6 of the corporate’s 2022 FDD:

• Preliminary Franchise Charge:  $19,000 to $109,000, relying on the potential territory income anticipated within the territory
• Royalty Charge:  8% of Web Income per thirty days
• Native Unit Proprietor Focused Advertising Expenditure:  Tier 1: $500; Tier 2: $1,500; Tier 3: $2,000; Tier 4: $2,500
• Model Fund Contribution:  1% of Web Income per thirty days, topic to will increase to not exceed 3% yearly

Part III – Variety of Franchised and Firm-Owned Grand Welcome Shops

Franchised

2019

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

2020

• Shops on the Begin of the 12 months:  0
• Shops on the Finish of the 12 months:  3
• Web Change:  +3

2021

• Shops on the Begin of the 12 months:  3
• Shops on the Finish of the 12 months:  6
• Web Change:  +3

Firm-Owned

2019

• Shops on the Begin of the 12 months:  8
• Shops on the Finish of the 12 months:  10
• Web Change:  +2

2020

• Shops on the Begin of the 12 months:  10
• Shops on the Finish of the 12 months:  8
• Web Change:  -2

2021

• Shops on the Begin of the 12 months:  8
• Shops on the Finish of the 12 months:  5
• Web Change:  -3

Part IV – Information Updates on the Grand Welcome Franchise

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

• This Merchandise accommodates a historic monetary efficiency illustration about Grand Welcome’s current affiliate-owned shops in 2021.

• As of December 31, 2021, Grand Welcome had 11 territory shops in operation. On the finish of the 12 months, Grand Welcome had 5 company shops and 1 franchised outlet in operation. 5 franchise territory shops had been excluded as a result of they weren’t open for a full 12 months.

• The next desk reveals Key Efficiency Indicators (KPI’s), Gross Revenues, and Prices info for Grand Welcome’s Working Associates’ 5 territories, which constantly operated throughout the whole 2021 calendar 12 months. Grand Welcome’s affiliate’s operation in Hawaii consists of three territories; nonetheless, monetary info is supplied to Grand Welcome in a single, consolidated report.

Lake Tahoe

• Territory Measurement:  Tier 4
• Variety of Items Managed:  182
• Common Every day Charge:  $393
• Common Size of Keep:  4
• Common Month-to-month Occupancy (friends solely):  33%
• Variety of Paying Reservations:  4,695
• Common Annual Unit Gross Income:  $52,487

Income

• Rental Earnings:  $7,170,037
• Cleansing Charge:  $1,733,173
• Reservation Charge:  $1,019,534
• Different Charges:  $147,805
• Taxes:  $755,096
• Gross Income:  $10,825,646

Price of Items Bought

• Taxes:  $755,096
• Visitor Focused Advertising Charge:  $571,975
• Property Proprietor’s Income Share:  $6,079,883
• Web Income:  $3,418,692

Property Prices

• Upkeep Prices:  $338,346
• Property Proprietor Upkeep Chargebacks:  $298,001
• Cleansing Prices:  $1,457,202

Gross Revenue:  $1,921,145

Working Bills and Franchise Charges

• Basic Supervisor:  $120,000
• Hire:  $27,653
• Insurance coverage:  $15,000
• Payroll:  $25,456
• Payroll Taxes and Advantages:  $17,921
• Accounting Charges:  $5,000
• Journey, Meals, and Leisure:  $8,303
• Utilities:  $4,419
• Advertising:  $25,552
• Phone:  $631
• Workplace Expense:  $18,236
• Native Taxes, Charges, and Permits:  $66,358
• Native Unit Proprietor Goal Advertising Expenditure:  $30,000
• Model Promoting Contribution:  $34,187
• Visitor Providers Help Charge:  $70,425
• Expertise Charge:  $65,520
• Royalty Charge:  $273,495
• Whole Working Bills and Franchise Charges:  $808,157

Web Franchise Revenue:  $1,112,988

Web Income to Web Franchise Revenue:  33%

Gross Income to Gross Franchise Revenue:  10%

Mammoth

• Territory Measurement:  Tier 4
• Variety of Items Managed:  101
• Common Every day Charge:  $182
• Common Size of Keep:  4
• Common Month-to-month Occupancy (friends solely):  28%
• Variety of Paying Reservations:  2,726
• Common Annual Unit Gross Income:  $26,765

Income

• Rental Earnings:  $1,781,928
• Cleansing Charge:  $654,613
• Reservation Charge:  $339,811
• Different Charges:  $79,514
• Taxes:  $356,951
• Gross Income:  $3,212,816

Price of Items Bought

• Taxes:  $356,951
• Visitor Focused Advertising Charge:  $168,705
• Property Proprietor’s Income Share:  $1,318,159
• Web Income:  $1,369,001

Property Prices

• Upkeep Prices:  $50,129
• Property Proprietor Upkeep Chargebacks:  $52,809
• Cleansing Prices:  $423,292

Gross Revenue:  $948,389

Working Bills and Franchise Charges

• Basic Supervisor:  $70,000
• Hire:  $48,576
• Insurance coverage:  $15,000
• Payroll:  $68,192
• Payroll Taxes and Advantages:  $16,385
• Accounting Charges:  $5,000
• Journey, Meals, and Leisure:  $607
• Utilities:  $5,176
• Advertising:  $3,318
• Phone:  $1,395
• Workplace Expense:  $7,047
• Native Taxes, Charges, and Permits:  $735
• Native Unit Proprietor Goal Advertising Expenditure:  $30,000
• Model Promoting Contribution:  $13,690
• Visitor Providers Help Charge:  $40,890
• Expertise Charge:  $36,360
• Royalty Charge:  $109,520
• Whole Working Bills and Franchise Charges:  $471,890

Web Franchise Revenue:  $476,499

Web Income to Web Franchise Revenue:  35%

Gross Income to Gross Franchise Revenue:  15%

Sea Ranch

• Territory Measurement:  Tier 2
• Variety of Items Managed:  38
• Common Every day Charge:  $402
• Common Size of Keep:  4
• Common Month-to-month Occupancy (friends solely): 44%
• Variety of Paying Reservations:  1,759
• Common Annual Unit Gross Income:  $88,980

Income

• Rental Earnings:  $2,516,849
• Cleansing Charge:  $475,911
• Reservation Charge:  $490,558
• Different Charges:  $74,377
• Taxes:  $328,572
• Gross Income:  $3,886,267

Price of Items Bought

• Taxes:  $328,572
• Visitor Focused Advertising Charge:  $195,889
• Property Proprietor’s Income Share:  $2,018,712
• Web Income:  $1,343,094

Property Prices

• Upkeep Prices:  $107,130
• Property Proprietor Upkeep Chargebacks:  $111,424
• Cleansing Prices:  $417,714

Gross Revenue:  $929,674

Working Bills and Franchise Charges

• Basic Supervisor:  $70,000
• Hire:  $17,950
• Insurance coverage:  $15,000
• Payroll:  $68,277
• Payroll Taxes and Advantages:  $18,414
• Accounting Charges:  $5,000
• Journey, Meals, and Leisure:  $1,385
• Utilities:  $8,818
• Advertising:  $3,030
• Phone:  $1,870
• Workplace Expense:  $6,236
• Native Taxes, Charges, and Permits:  $200
• Native Unit Proprietor Goal Advertising Expenditure:  $18,000
• Model Promoting Contribution:  $13,431
• Visitor Providers Help Charge:  $26,385
• Expertise Charge:  $13,680
• Royalty Charge:  $107,447
• Whole Working Bills and Franchise Charges:  $395,123

Web Franchise Revenue:  $534,551

Web Income to Web Franchise Revenue:  40%

Gross Income to Gross Franchise Revenue:  14%

Hawaii

• Territory Measurement:  Tier 4
• Variety of Items Managed:  101
• Common Every day Charge:  $206
• Common Size of Keep:  8
• Common Month-to-month Occupancy (friends solely):  46%
• Variety of Paying Reservations:  1,809
• Common Annual Unit Gross Income:  $37,113

Income

• Rental Earnings:  $2,942,211
• Cleansing Charge:  $461,263
• Reservation Charge:  $492,102
• Different Charges:  $66,614
• Taxes:  $557,877
• Gross Income:  $4,520,067

Price of Items Bought

• Taxes:  $557,877
• Visitor Focused Advertising Charge:  $236,403
• Property Proprietor’s Income Share:  $2,333,040
• Web Income:  $1,392,747

Property Prices

• Upkeep Prices:  $295,171
• Property Proprietor Upkeep Chargebacks:  $384,501
• Cleansing Prices:  $367,503

Gross Revenue:  $1,114,574

Working Bills and Franchise Charges

• Basic Supervisor:  $90,000
• Hire:  $63,061
• Insurance coverage:  $15,000
• Payroll:  $166,171
• Payroll Taxes and Advantages:  $28,544
• Accounting Charges:  $5,000
• Journey, Meals, and Leisure:  $1,476
• Utilities:  $5,255
• Advertising:  $5,251
• Phone:  $3,470
• Workplace Expense:  $12,281
• Native Taxes, Charges, and Permits:  $3,155
• Native Unit Proprietor Goal Advertising Expenditure:  $30,000
• Model Promoting Contribution:  $13,927
• Visitor Providers Help Charge:  $27,135
• Expertise Charge:  $36,360
• Royalty Charge:  $111,420
• Whole Working Bills and Franchise Charges:  $617,507

Web Franchise Revenue:  $497,067

Web Income to Web Franchise Revenue:  36%

Gross Income to Gross Franchise Revenue:  11%

Santa Barbara

• Territory Measurement:  Tier 4
• Variety of Items Managed:  8
• Common Every day Charge:  $407
• Common Size of Keep:  14
• Common Month-to-month Occupancy (friends solely):  47%
• Variety of Paying Reservations:  91
• Common Annual Unit Gross Income:  $90,340

Income

• Rental Earnings:  $588,801
• Cleansing Charge:  $50,839
• Reservation Charge:  $91,408
• Different Charges:  $44,004
• Taxes:  $40,964
• Gross Income:  $816,016

Price of Items Bought

• Taxes:  $40,964
• Visitor Focused Advertising Charge:  $56,410
• Property Proprietor’s Income Share:  $471,163
• Web Income:  $247,479

Property Prices

• Upkeep Prices:  $44,647
• Property Proprietor Upkeep Chargebacks:  $13,098
• Cleansing Prices:  $37,557

Gross Revenue:  $178,373

Working Bills and Franchise Charges

• Basic Supervisor:  $55,000
• Hire:  $2,434
• Insurance coverage:  $5,000
• Payroll:  $0
• Payroll Taxes and Advantages:  $0
• Accounting Charges:  $5,000
• Journey, Meals, and Leisure:  $0
• Utilities:  $0
• Advertising:  $799
• Phone:  $43
• Workplace Expense:  $1,217
• Native Taxes, Charges, and Permits:  $619
• Native Unit Proprietor Goal Advertising Expenditure:  $30,000
• Model Promoting Contribution:  $2,475
• Visitor Providers Help Charge:  $1,365
• Expertise Charge:  $2,880
• Royalty Charge:  $19,798
• Whole Working Bills and Franchise Charges:  $126,630

Web Franchise Revenue:  $51,743

Web Income to Web Franchise Revenue:  21%

Gross Income to Gross Franchise Revenue:  6%

Newport Seaside

• Territory Measurement:  Tier 4
• Variety of Items Managed:  14
• Common Every day Charge:  $564
• Common Size of Keep:  8
• Common Month-to-month Occupancy (friends solely):  46%
• Variety of Paying Reservations:  303
• Common Annual Unit Gross Income:  $113,470

Income

• Rental Earnings:  $1,316,289
• Cleansing Charge:  $156,641
• Reservation Charge:  $152,570
• Different Charges:  $44,291
• Taxes:  $152,677
• Gross Income:  $1,822,468

Price of Items Bought

• Taxes:  $152,677
• Visitor Focused Advertising Charge:  $90,319
• Property Proprietor’s Income Share:  $1,128,956
• Web Income:  $450,516

Property Prices

• Upkeep Prices:  $34,551
• Property Proprietor Upkeep Chargebacks:  $29,700
• Cleansing Prices:  $123,611

Gross Revenue:  $322,054

Working Bills and Franchise Charges

• Basic Supervisor:  $80,858
• Hire:  $10,251
• Insurance coverage:  $4,237
• Payroll:  $0
• Payroll Taxes and Advantages:  $8,138
• Accounting Charges:  $19,467
• Journey, Meals, and Leisure:  $5,203
• Utilities:  $0
• Advertising:  $47,375
• Phone:  $1,165
• Workplace Expense:  $998
• Native Taxes, Charges, and Permits:  $0
• Native Unit Proprietor Goal Advertising Expenditure:  $30,000
• Model Promoting Contribution:  $4,505
• Visitor Providers Help Charge:  $4,545
• Expertise Charge:  $5,040
• Royalty Charge:  $36,041
• Whole Working Bills and Franchise Charges:  $257,823

Web Franchise Revenue:  $64,231

Web Income to Web Franchise Revenue:  14%

Gross Income to Gross Franchise Revenue:  4%

Common

• Variety of Items Managed:  74
• Common Every day Charge:  $359
• Common Size of Keep:  7
• Common Month-to-month Occupancy (friends solely):  41%
• Variety of Paying Reservations:  1,897
• Common Annual Unit Gross Income:  $68,192

Income

• Rental Earnings:  $2,719,352 (65.0%)
• Cleansing Charge:  $588,740 (14.1%)
• Reservation Charge:  $430,997 (10.3%)
• Different Charges:  $76,101 (1.8%)
• Taxes:  $365,356 (8.7%)
• Gross Income:  $4,180,546 (100.0%)

Price of Items Bought

• Taxes:  $365,356 (8.7%)
• Visitor Focused Advertising Charge:  $219,950 (5.3%)
• Property Proprietor’s Income Share:  $2,224,986 (53.2%)
• Whole Price of Items Bought:  $2,810,292 (67.2%)

Web Income:  $1,370,254 (32.8%)

Property Prices

• Upkeep Prices:  $144,996 (3.5%)
• Property Proprietor Upkeep Chargebacks:  $148,256 (3.5%)
• Cleansing Prices:  $471,146 (11.3%)
• Whole Property Prices (After Including Again Property Proprietor Upkeep Chargebacks):  $467,886 (11.2%)

Gross Revenue:  $902,368 (21.6%)

Working Bills and Franchise Charges

• Basic Supervisor:  $80,976 (1.9%)
• Hire:  $28,321 (0.7%)
• Insurance coverage:  $11,540 (0.3%)
• Payroll:  $82,024 (2.0%)
• Payroll Taxes and Advantages:  $14,900 (0.4%)
• Accounting Charges:  $7,411 (0.2%)
• Journey, Meals, and Leisure:  $2,829 (0.1%)
• Utilities:  $3,945 (0.1%)
• Advertising:  $14,221 (0.3%)
• Phone:  $1,429 (0.0%)
• Workplace Expense:  $7,669 (0.2%)
• Native Taxes, Charges, and Permits:  $11,844 (0.3%)
• Native Unit Proprietor Goal Advertising Expenditure:  $28,000 (0.7%)
• Model Promoting Contribution:  $13,702 (0.3%)
• Visitor Providers Help Charge:  $28,458 (0.7%)
• Expertise Charge:  $26,640 (0.6%)
• Royalty Charge:  $109,620 (2.6%)
• Whole Working Bills and Franchise Charges:  $473,529 (11.3%)

Web Franchise Revenue:  $428,839 (10.3%)

• Gross Revenues means all rental earnings obtained from visitor stays and different visitor funds, together with cleansing charge, injury waiver, reservation charges, and varied different charges, much less taxes, bank card/service provider processing charges, and OTA commissions.

• This contains lease, utilities, phone, journey, office-related bills, native taxes and charges, payroll, payroll taxes and advantages, and another basic bills. You might not incur all of those bills relying on how you use, otherwise you may incur different prices not included on this desk, resembling car bills.

• This contains changes for sure revenue and loss objects if run as a franchise for upkeep chargebacks, third celebration commissions, insurance coverage, accounting, and the price of a Basic Supervisor operating Grand Welcome’s company places.

• Grand Welcome’s affiliate-owned shops function in considerably the identical method as franchise shops; nonetheless, the Working Associates aren’t topic to the identical charges {that a} franchisee will expertise. Particularly, a franchisee who achieved the identical gross sales outcomes that Grand Welcome’s Working Associates achieved would incur Native Advertising Charges, Model Fund Contributions, Expertise Charges, and Royalty Charges, as mirrored within the above desk.

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