Playa Bowls Franchise Cost Worth Profit Potential?
Playa Bowls Franchise offers a quick serve restaurant featuring acai bowls, pitaya bowls, coconut bowls, chia pudding bowls, oatmeal bowls, smoothies, juices, and other healthy food options. Playa Bowls is “your slice of summer, anytime”. Also caters events to bring the summer vibe to any occasion. There are currently 25 company owned restaurants and 73 franchised run locations.
The Playa Bowls were inspired with the ideas by chasing summer on surf trips to Panama, Costa Rica, Nicaragua, Puerto Rico, California & Hawaii. Playa Bowls was founded in June of 2016 in New Jersey.
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01:20 Franchise fee
01:29 Initial Investment
02:01 Income Statement
02:25 Recoup Investment
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The Playa Bowls concept is the vision of founders Robert Giuliani & Abby Taylor who are both Jersey Shore natives & long time surfers.
In a 60/40 split, Playa Bowls co-founders Rob Giuliani and Abby Taylor received a majority investment from Tamarix Equity Partners and Pacific General Holdings. Giuliani will remain in his position as CEO and Taylor will remain as chief marketing officer.
With this partnership, Playa Bowls is in the process of hiring key people to help grow the brand’s footprint on the West Coast and hope to have 500 total stores by 2024
The initial license fee for a Playa Bowls franchise is $35,000. This is the upfront fee that must be paid when opening a Playa Bowls franchise.
If you qualify to develop and operate multiple Playa Bowls Restaurants, then you will pay to Playa Bowls a development fee equal to 100% of the initial franchise fee for the first Restaurant to be developed, plus 50% of the initial franchise fee for each additional Restaurant you commit to develop under the Multi-Unit Development Agreement.
The estimated total investment necessary to begin operation of a Playa Bowls restaurant ranges from $168,675 – $435,058.
Royalty Fee: 6% of Gross Sales Paid Monthly
Brand Development Fee: 1% of Gross Sales Monthly
Playa Bowls does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or affiliate-owned or franchised outlets. The company also does not authorize employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, Playa Bowl may provide you with the actual records of that outlet.
However, using the Franchisor income statement we can deduce from look at the income statement line item “Franchise Revenue”:
Currently Playa Bowls has a Royalty Fee of: 6% of Gross Sales and 1% of gross sales for the brand development fee.
In 2020, the franchisor, Playa Bowl, had franchise revenues of $2.9 million, therefore we know this is 6% of the total franchise sales of about 73 franchise locations.
Estimated Total Playa Bowls Franchise Sales: $48.6 million
Estimated Average Playa Bowls Franchise Sales: $666,000
This is just an estimated sales based on the franchisor’s income statement and can vary greatly depending on the length that the particular franchise location has been open.
Overall, Playa Bowls is a profitable business, with a net income of $2.4 million in 2020. Total revenues were $3.65 million while expenses were only $1.25 million indicating a healthy profit margin. There was a $1.5 million in distributions to members emphasizing that money is being taken from the business to pay out the owners, but as seen in the cash flow statement the company still has about $1.9 million of cash on hand so the company has the ability to pay out its owners from the revenue generated from franchise locations.
In 2020, Playa Bowls had a net income of $2.4 million, and their cash, cash equivalents and restricted cash was $1.9 million at the end of 2020 a 37% increase from the cash they started with at the beginning of the year. This extra cash flow is seen in their net cash provided by operating activities which was $2.9 million in 2020.
You can learn more here: https://www.vettedbiz.com/playa-bowl-franchise/