UNDERSTANDING THE INVESTMENT
If you have an initial interest in becoming an Ellianos Franchisee, then you probably have a target area in mind, and perhaps you even have your eye on some potential sites. While market research and site selection are crucial, you must first look at the financial considerations involved.
The total amount of investment required to start an Ellianos Franchise can vary widely, depending on your real estate arrangement and other varying factors. Typically, we have two formats that can be considered, depending on the selected site. The main format so far, with the least amount of capital required, has been to locate vacant space in an existing shopping center parking lot, in a visible and easily accessible spot, and work a land lease with the existing property owner. This means you are only required to invest in building, equipment, utility hookups and minimal other site costs since you are just setting down in an area that is already paved.
The second format has been to purchase a separate parcel or site, usually in an unimproved condition, and then do all of the site improvements and utility work, in addition to the building and equipment costs. A site like this could also be worked as a lease, instead of a purchase. This format obviously increases the amount of capital required for the project substantially. The advantage of purchasing your land is the ownership of the land as an asset, which will hold and possibly increase its value over time.
In addition to understanding the financial requirements involved, it is important to understand the time this process takes. Depending on your situation and motivation, the process from signing the Franchise Agreement to Grand Opening can take anywhere from 6 months to 1 year or more.
The minimum requirements to become an Ellianos Franchisee are a minimum of $50,000 in cash or liquid assets, with an overall financial net worth of at least $150,000. However, if you will need to obtain a loan to start up, your financial institution may have different financial requirements.
The first consideration is to evaluate your ability to fund the operation, either with your own capital, or a combination of your capital and a funding or borrowing source (investors, partners or banks).
The total amount of investment, without the purchase of real estate can run a broad range, from at least $167,300 to $292,500, even before considering the actual real estate, which can be either leased or purchased. Please see the Initial Investment table and notes for more information on specific start up costs.
If you need to obtain financing to start your Ellianos, typically lenders will require a combination of your own down payment and other assets. Depending on your asset base, a lender’s required down payment could be from 30% - 50% or more of the investment.
If you do not meet the asset requirement and you do not have substantial business experience, it is important to understand that obtaining financing from traditional banks can be very difficult. You may still have the options of finding a partner with more resources or searching out loans from the Small Business Administration.
Locate the SBA lenders in your area, and contact several of them. After discussing the concept and requirements with them, you should be able to decide if you have the potential to qualify for their lending. Direct them to our website if they need more information on the concept.
EVALUATING INCOME POTENTIAL
The amount of profit or loss is based on a wide range of factors including sales, costs, and the franchisee’s ability to manage business operations. Ellianos does not make any claims or guarantees on projected sales, profits, or losses. What we can do, is help you build your own projections.
This involves projecting daily sales based on available market and site factors and assumptions, and projecting your costs. Use our Projection Calculator to build your own Ellianos income scenario. Please Click Here to DOWNLOAD the projection calculator file. You must have Microsoft Excel to open.)
*The projection calculator provides a mere projection. Actual results may vary widely. Again, Ellianos makes no claim to and can not guarantee financial results.
Once you decide that Ellianos is a good opportunity for you and you have realistic financing possibilities, then fill out our Request More Information form and we will contact you soon.