FibreNew Franchise Cost and Profit for 2024
Fibrenew franchise is a global leader in the repair, restoration, and color change of leather, plastic, and vinyl. They aim to help reduce the environmental impact of disposing of damaged materials by offering an alternative to replacement. They have a network of multiple highly skilled franchise partners operating across many countries around the world. Their technicians are trained to perform repairs that meet or exceed the standards of the original manufacturers, using the company’s own proprietary products and processes.
About Fibrenew
From small scratches to complete panel replacements, they can restore the customer’s damaged surfaces to like-new condition. Fibrenew provides its franchisees with an extensive training program, ongoing support, and exclusive marketing tools and resources. Their technicians are highly skilled in the craft of leather repair as well as plastic and vinyl restoration.
Fibrenew is a mobile service franchise with 300 locations that specializes in the repair, restoration, and renewal of leather, plastic, vinyl, fabric, and upholstery. With a rich history that dates back to 1985, we manufacture a highly specialized proprietary product line and have pioneered the repair techniques and exclusive color-matching technology that our technicians use every day. Their products, techniques, and color-matching technology are what sets us apart and what has made us a leader in our industry.
How Is Fibrenew Franchise Positioned in the Cleaning and Maintenance Industry?
There is a rising demand for cleaning and maintenance services in the U.S. as construction activities, investment in real estate, and the number of working women have increased. The Cleaning and Maintenance industry offers commercial and residential services such as window cleaning, floor cleaning and care, carpet and upholstery cleaning, maid services, janitorial services, landscaping, vacuuming, snowplowing, and more.
The Cleaning industry supports over 3.3 million jobs, of which 2 million are supported by the Janitorial Services industry alone. The janitorial sector has over 845,000 businesses and a market size of $58 billion.
Industry Trends of 2023
Customer services will become more automated. Cleaning and maintenance companies are investing in machine learning and technology to pay customer invoices online, schedule, reschedule, get notifications of appointments, and provide feedback. Companies are also investing in business software with the goal of being more efficient and competitive. In addition, as people stay inside more because of Covid-19, the need of having a clean space with everything working has increased. The industry has plenty of space to grow in the scenario post-Covid-19.
Rising environmental concerns lead to trends in more sustainable and eco-friendly cleaning products and services. There is also a growing trend for more natural cleaning products due to health concerns. Over the past few years, many franchises have implemented green cleaning concepts to support the demand. Furthermore, other more traditional franchise brands have also introduced environmentally friendly products and services to not only meet government regulations but also accommodate the needs of more environmentally conscious customers.
How Much Is a Fibrenew Franchise?
The initial Fibrenew Franchise Fee is $47,000. You have to pay this upfront fee when opening a Fibrenew franchise.
Fibrenew Franchise Cost
The estimated total investment necessary to begin the operation of a Fibrenew Franchise ranges from $97,825 to $111,695.
Many of these are one-time fees that are needed to launch the franchise.
Review the chart below to see how much it costs to buy a Fibrenew franchise in 2022.
| Type of expediture | Amount | To Whom Payment Is to Be Made | |
|---|---|---|---|
| Low | High | ||
| Initial Franchise Fee | $47,000 | $47,000 | Us |
| Start-up Fee | $42,000 | $42,000 | Us |
| Liability insurance – 1 year | $800 | $2,285 | Approved national insurance broker |
| Vehicle Insurance -1 year | $800 | $3,860 | Insurance broker |
| Organizational expenses | $200 | $2,000 | Lawyer, accountant |
| Training/Travel Expenses | $0 | $2,500 | Restaurants, hotels, transportation providers for online or in-person classroom training |
| Office equipment | $0 | $1,000 | Vendors |
| Work Vehicle wih Fuel – 6 months | $2,400 | $4,100 | Dealer |
| Vehicle Signs | $3,075 | $3,450 | Suppliers |
| Internet and Wireless Access – 6 months | $300 | $600 | Internet service provider |
| Business Licenses / Permits | $50 | $200 | Governmental units |
| Office or Storage Area | Unable to estimate | Unable to estimate | Landlord |
| Internet Marketing – 6 months | $1,200 | $200 | |
| Additional funds- first 3 months of operations | $0 | $1,500 | Various |
| TOTAL | $258,450 | $353,000 | |
Fibrenew Franchise Requirements
The minimum liquid capital to own a Fibrenew franchise is $30,000.
The net worth required is $100,000.
Owning a Fibrenew Franchise Requires Ongoing Fees
Royalty: Fibrenew does not collect a royalty fee based on a percentage of sales.
Technical Assistance Fee: The fee vaies, but it is not less than $795 per month. At the beginning of the third year of the franchise term and at the beginning of each year of the franchise term from then on, the monthly technical assistance fee will increase by an amount equal to 5% of the monthly technical assistance fee for the year just ended (rounded up to the nearest 10 cents), and you will pay the newly increased monthly technical assistance fee for that new year.
The mode of Fibrenew Franchise is a little different from other franchises as it does not collect a required royalty fee and marketing fee, but it does require the technical assistance fee, which is not less than $795 per month, which might be a little high if the sales for the franchise is not high.
Units Change of Fibrenew in the Past Years
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2020 | 172 | 187 | +15 |
| 2021 | 187 | 204 | +17 | |
| 2022 | 204 | 228 | +24 | |
| Company-Owned | 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 | |
| 2022 | 0 | 0 | 0 | |
| Total Outlets | 2020 | 172 | 187 | +15 |
| 2021 | 187 | 204 | +17 | |
| 2022 | 204 | 228 | +24 |
The number of units of Fibrenew has been continually increasing since 2020 due to the influence of Covid-19. This continuous increase might indicate that the profits and the revenues of Fibrenew have been desirable in recent years along with the growing trend of both the Cleaning and Maintenance industry and the franchise. Hence, due to the increase of franchise units, it might seem worth investing in Fibrenew.
How Much Do Fibrenew Franchise Owners Make?
Based on assumptions from the franchisor financial and third party data, we assume an average of the Total Revenue of $249,212 for Year 1 and an average of $329,582 for Year 3 of operating a Fibrenew.
This is just an estimated sales projection and can vary greatly depending on how long that particular franchise location has been open and how well the business is run.
Is the Fibrenew Franchise Profit Worth the Franchise Cost?
As seen in the sales figures above, it takes a long time to recoup your investment if you own just one Fibrenew. The best-case scenario would be, based on 2022 sales figures and a 20% profit margin, that you would recoup your investment in 2-3.5 years.
Based on resales available from Bizbuysell, the approximate asking price for the resale of Fibrenew is around $115,000. This is a little higher than the median initial investment of $104,760.
Fibrenew Income Statement Key Insights
| 2020 | 2019 | |
|---|---|---|
| Sales | ||
| Technical assistance fees | $1,735,420 | 1,503,394 |
| Initial franchise fees | 1,330,675 | 1,029,051 |
| Start-up fees | 1,209,013 | 1,072,168 |
| Product sales | 475,991 | 495,144 |
| Other | 51,160 | 64,828 |
| 4,802,259 | 4,164,585 | |
| Cost of sales | ||
| Franchise sales | 1,031,750 | 870,613 |
| Start-up costs | 987,139 | 809,462 |
| Product sales | 388,075 | 398,455 |
| Other | 22,774 | 32,8520 |
| 2,429,738 | 2,111,380 | |
| Gross margin (49.4%, 2021, 49.3%) | 2,372,521 | 2,053,205 |
| Expenses | ||
| Accounting and legal | 92,,745 | 64,308 |
| Advertising and promotion | 238,535 | 170,234 |
| Bad debts | – | 1,332 |
| Consulting fees | 155,358 | 149,317 |
| Franchise development and support | 33,775 | 35,451 |
| Management fees | 140,976 | 174,130 |
| Office and administration | 34,915 | 41,697 |
| Overhead | 1,160,806 | 1,135,323 |
| Sales | 15,454 | |
| Travel | 6,581 | |
| 1,879,145 | 1,796,995 | |
| Income before other items and income taxes | 493,376 | 256,210 |
| Other income (expense) | ||
| Interest | 1,692 | 1,688 |
| Loss on foreign exchange | 46,120 | 34,764 |
| 44,428 | 34,764 | |
| Income before income taxes | 448,948 | 221,446 |
| Income taxes | ||
| Current | 19,4221 | 152,841 |
| Deferred | 41,531 | 43,631 |
| 232,953 | 196,472 | |
| Net income | 215,995 | 24,974 |
Fibrenew is a profitable business for the franchisor with a net income of $215,995 in 2022. Compared with only $24,974 net income in 2021, Fibrenew saw a dramatic increase from 2021 to 2022. This is a good indication of high growth as a company and the industry overall.
We could find that the initial franchise fees increased from $1,029,051 to $1,330,675 from 2021 to 2022, which also reflects that the franchise is still growing and indicates a positive future for Fibrenew.
Conclusion
Overall, it seems that investing in a Fibrenew franchise could be profitable and a good opportunity. The prospects for growth and success within the industry and the Fibrenew brand itself give the new owners and investors a great chance to make their initial investment money back within a reasonable time frame.
We strongly recommend you speak to at least 5 Fibrenew franchisees to better understand the financials (see questions to ask).
Think Fibrenew is the right franchise for you, or are you interested in other franchise opportunities in the Cleaning and Maintenance industry? Check out our page on the Vetted Biz website for thousands of franchises available for your investment.
