The emerging brand’s business model is designed to lessen costs for franchisees while providing them with the potential for strong sales.
There’s no shortage of factors that aspiring franchisees examine when deciding what brand to invest in. The due diligence process is an intense one—from a concept’s business model and support system to its customer base and brand awareness, candidates need to ensure that they’re 100 percent positive that they’re making the right decision. In order for prospective franchisees to reach the level of confidence that they need to officially sign a franchise agreement, there’s often one deciding factor that stands above the rest: financial performance.
At the end of the day, people go into business for themselves to earn a living while doing what they love. That’s why Item 19 of the Franchise Disclosure Document (FDD) is so important—it’s the first place candidates look when determining their potential earnings compared to their likely costs. It can be challenging for brands to present a strong Item 19, especially when first breaking into the franchising industry. But Enjoy Your Party, an emerging concept that serves as a food service staffing agency, boasts numbers that it’s proud of.
Based on the brand’s one active corporate location’s operations throughout the calendar year ending on December 31, 2015, gross sales reached the $1,410,952 mark. That number climbed in the calendar year ending on December 31, 2016, with Enjoy Your Party’s gross sales coming in at $1,920,170. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) also jumped from over $333,000 in 2015 to over $645,041 in 2016. That’s especially impressive given the brand’s low initial investment—startup costs for qualified candidates range between $84,800 and $111,375.
“One of the key differentiators that makes our Item 19 so strong is the fact that we don’t operate like your standard business. This isn’t a brick and mortar based operation that requires a ton of fixed costs—our franchisees won’t face large, ongoing, operational costs,” said Patrick Morlando, President o Enjoy Your Party Franchise. “The main expense that comes with being an Enjoy Your Party franchisee is really insurance and labor. But because labor costs are on a slide scale depending on your bookings, those costs are more limited.”
In addition to its low overhead, Enjoy Your Party is also able to have such a strong Item 19 because of its unique concept and industry. The brand is fully focused on staffing food related events, and its employees are all expertly trained to uphold the highest standards of professionalism. Other concepts can’t compete with what Enjoy Your Party is bringing to the table, enabling the brand to tap into climbing demand for its services. Enjoy Your Party also boasts a simple business model that can be up in running within 30 to 45 days, enabling franchisees to get their businesses off the ground quickly and efficiently.
“The launch of our franchising opportunity is going to allow us to continue growing our gross sales across the board. We’re setting a strong foundation that’s rooted in consistent success, which is why we’re anticipating our 2017 Item 19 numbers to be about seven percent higher than they were in 2016,’ said Morlando. “We’ve proven that Enjoy Your Party’s business model works. Now, we’re eager to introduce our concept to new franchisees and help them make it their own in communities across the country.”
For more information on Enjoy Your Party’s Item 19, please see its full Franchise Disclosure Document.