When you make the decision to go into business for yourself by becoming part of a franchise brand, your investment will afford you advantages and benefits not available to those who start their businesses from scratch. In fact, a proven business model, thorough training, and ongoing support are just some of the hallmarks of an investment in Starlite Family Fun Center. But what are some of the financial requirements to owning and operating a family fun center? What are some skating rink franchise costs you can expect to see when you partner with Starlite? Let’s take a look at three of them.
Franchise and Royalty Fees
No matter what brand you decide to invest in, all franchisors require franchisees to pay an initial one-time franchise fee. At Starlite, that fee is $50,000. Additionally, you’ll be responsible for monthly royalty fees. Our franchisees pay 6% of their gross sales, as well as monthly technology fees estimated at about $300 per month. These skating rink franchise costs help us offset the expense of the ongoing support we provide you as you grow your business, and pay for the continued development of services, marketing tools, training programs, and the systems upgrades you’ll rely on throughout your time with Starlite.
Marketing and Advertising
It goes without saying that no matter your line of work, you cannot do business without letting folks know you are in business. What does that mean? It means you’ll need to market and advertise your new fun center. At Starlite, we require you to spend a minimum of 2% of your gross revenue each month on local marketing. We’ll also ask that you contribute up to 1% of your gross margin revenues toward the Starlite system marketing fund. This pool is used to pay for the development of marketing and promotional strategies, as well as funding the creative costs of devising local franchise marketing materials and campaigns. We know the importance of consistent, high-quality marketing and advertising, and are always here to help you promote your fun center in ways that will get the word out about your business.
While not exactly a cost or fee, financial security is something we look for in all our franchisee candidates. Because we know from experience that starting any new business takes not only effort but time, it’s important that new owners have the capital to grow. For this reason, we look for investors with a minimum liquidity of about $500,000 and a minimum net worth of $3,000,000 or greater. Having this kind of financial stability allows new business owners to concentrate on building their customer base, establish themselves in their community, and ultimately worry less about failure and focus more on success.
If you’d like to learn more about skating rink franchise costs and what they mean when you franchise with Starlite Family Fun Center, get in touch with us today.