Discussion reply

Response 1: 

his week I selected Mathnasium Learning Centers, ranked #28 in the Franchise 500.  My rationale for selecting this franchise is that I have a working relationship with the local franchisee.  What are the capital requirements to purchase the franchise?  Initial Investment is $112,750 - $148,610  Net-Worth Requirement is $148,610  Liquid Cash Requirement is $112,750  Estimate your financial costs for the first year, including fees, training, and support Initial Franchise Fee is $49,000  Ongoing Fees are $49,000  Ongoing Royalty Fees 10%+  Ad Royalty Fee 2%+  On-the-Job Training 28.5 hours  Classroom Training 38 hours  How many locations currently exist for this franchise? 800 Locations in the United States Currently  59 Units added last year or a 7.4% growth  285 Units added in the last 3 Years for a 50.3% growth   Is there a growth opportunity, or is the market saturated? Mathnasium Learning Centers began its franchise efforts in 2003 while experiencing a rather strong rate of growth particularly in the past 3 years.  This would indicate the market in the United States has room continue expansion, which leads me to conclude it represents a growth opportunity.   Additionally, a macro view of the market would support growth of tutoring services as public school systems are experiencing budget cutbacks in every state

******************************************************

Response 2:

The business I chose to research from the 2017 Top franchises entrepreneur list is Planet fitness. I frequent the planet fitness and I enjoy going there to work out. This however seems to be an expensive franchise to purchase and run. The initial investment for this franchise is a $857,080-$4,234,750 according to entrepreneur.com. This includes the “franchise fee, and startup expenses such as real estate, equipment, supplies, business licenses and working capital.” (entrepreneur.com) The net worth of the franchise must be at least 1.5 million dollars and a liquid cash requirement of at least $600,000. I can estimate approximate financial cost of around $1 Million dollars.  This number is including the 7% for the ongoing royalty fee and 9% for the ad royalty fee. There were 1353 franchises in 2017 and that number is growing, (1335 in the US and 18 outside the US) This franchise is consistently growing despite the large market for fitness centers around the country and the world. Planet fitness however sponsors the biggest loser and focuses on the market of people out of shape trying to regain their life. (Entrepreneur.com) There is growth in this franchise due to the real estate and the market being reached. There are more over weight and out of shape people in America than not. This gym strays away from the “Lunks” as they call them and focuses on the just getting started market. With the cost of membership fees and retail of items this company can do well pending the timing, location, and support of the community.