Flip Flop Shop Franchise Review (2024)
Franchise Flip Flop Shop Background
Founded in 2004, Flip Flop Shop is a retail concept devoted to the hottest brands and latest styles of flip flops and casual footwear. Its mission is to live to create innovative ways to “Free Your Toes” to promote a casual, healthy, stress-Free lifestyle.
In addition, Flip flops and sandals are the oldest and at the same time best-selling footwear worldwide. Usually seen only at beach resorts, flip flops and sandals are a huge phenomenon. Also, a few years ago people would wear them only to the beach or at the pool. And now they are seen in many locations away from the beach.
Management Team
The company began franchising in 2008 and now operates shops globally throughout the United States, Canada, the Caribbean, Spain and South Africa.
In 2018, California-based footwear firm Bearpaw Holdings LLC acquired Flip Flop Shop brand. The CEO Tom Romeo believes that the alliance between Flip Flop Shop and Bearpaw creates the perfect balance of seasonal products. And styles for consumers to enjoy year-round. The brand currently has 55 shops operating worldwide.
Franchise Retail Industry Analysis
Franchise Strengths
- Operationally simple, easy to learn
- Strong franchise brand that is growing
- Strong management team that has been in the shoe industry for over 30 years
Franchise Weaknesses
- Revenue is highly dependent on location of the studio
- Operates in a competitive environment where customer satisfaction is key
Franchise Opportunities
- Brand still has room to grow as more shops open
- The United States has the largest footwear market in the world, amounting to approximately 79.86 billion U.S. dollars in revenue in 2017 (Statista)
- According to the latest report published by Credence Research, Inc. “Global Footwear Market – Growth, Future Prospects and Competitive Analysis, 2018-2026,” the market was valued at US$ 222.4 Bn in 2017, expected to grow at the CAGR of 3.1% from 2018 to 2026 (Marketwatch)
Franchise Threats
- Other local shops in the area
- Potential for changes in consumer tastes and styles
- Consumer might prefer online shopping
How much is a Flip Flop Shops?
Flip Flop Shops Franchise cost ranges from $143,500 to $242,000 according to the 2019 FDD.
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Initial Franchise Fee | $35.000 | $35.000 | Upon signing franchise agreement | Franchisor |
| Rent for the fisrt 3 months | 15.000 | 36.000 | As Arranged | Landlord |
| Security Deposit | 2.200 | 12.000 | As Arranged | Landlord |
| Leasehold Improvements | 15.000 | 40.000 | As Arranged | Landlord or Contractor |
| Signage | 5.000 | 10.000 | As Arranged | Landlord or Contractor |
| Furniture, Fixtures, and Equipment | 15.000 | 25.000 | As Invoiced | Suppliers |
| Initial Training Expenses | 1.000 | 2.000 | As Invoiced | Employees and Suppliers |
| Point of Sale and Computer Hardware Software | 6.000 | 8.000 | As Arranged | Suppliers |
| Initial Inventory/Supplies | 45.000 | 65.000 | Before Opening | Vendors |
| Professional Services | 2.500 | 5.000 | As Arranged | Accountants, Lawyers, Real Estate Brokers, etc. |
| Promotional Expenses | 1.000 | 2.500 | As Arranged | Suppliers |
| Insurance | 800 | 1.500 | As Arranged | Insurance Broker |
| Total | $143,500 | $242,000 |
| Royalty | Ad-Fund |
| 5% | 1% |
How Much does a Flip Flop Shops Franchise make?
| Average and Median Gross Sales and Average and Median Weekly Gross Sales for the Sample Stores During the Reporting Period |
| Average Gross Sales | $ 394.843 |
| Median Gross Sales | $ 395.575 |
| Average Weekly Gross Sales | $ 7.593 |
| Median Weekly Gross Sales | $ 7.607 |
FDD Disclosure: “This portion of the financial performance representation includes information relating to the Gross Sales and average weekly Gross Sales for the period from January 1, 2018 to December 31,2018 (the “Reporting Period”) for the 47 franchised Flip Flop Shop Stores in the United States (including stores in U.S. territories) and Canada that opened during the entire Reporting Period and were open and operating as of February 3,2018 (the “Sample Stores”). The Sample Stores do not include 8 franchised Flop Flop Shops Stores that closed during the Reporting Period, 3 seasonal stores, or 4 stores that opened during reporting period.
These 47 Sample Stores represent 86.5% of the 54 total Flip Flop Shops Stores in the United States (included Stores in U.S. territories) and Canada open as of the end of the Reporting Period. Information for the Stores outside the 50 United States and Canada is not included in this Item 19.
The Gross Sales realized will vary from Store to Store and will be directly affected by many factors, such as the store’s size, geographic location, competition in the marketplace; the presence of other Flip Flop Shops Stores; and the quality of management and service at the store.
Finally, this financial performance representation reflects only the revenue of the Sample Stores and does not reflect any costs of sales, operating expenses, and other costs or expenses that you will incur in operating the store, including the royalty fees and advertising contribution that you must pay under the terms of the Franchise Agreement. This financial performance representation also does not include debt service or equipment lease costs that may be incurred in the operation of a Flip Flop Shops Store. In addition, this financial performance representation does not include any information about the federal income taxes payable on any net income derived from the operation of the store or state or local net income or gross profits taxes that may be applicable in the jurisdiction in which your store is located. To learn more about Flip Flop Shops, check out their website now!
