Understanding The Extra Yard Investment
A transparent look at what it takes to open and operate an Extra Yard franchise.
The Investment
Opening an Extra Yard franchise requires an estimated total investment of $46,100–$61,000, including the $15,000 franchise fee. The range reflects costs of equipment, signage, initial marketing, training, and working capital through the early months of operations.
$15K
Franchise Fee
$54K
Avg. Total Investment
7%
Royalty Fee
5%
Local Advertising (max)
Initial Investment Breakdown
| Expense | Low Estimate | High Estimate | Notes |
|---|---|---|---|
|
Franchise Fee |
$15,000 |
$15,000 |
Non-refundable |
|
Initial Marketing Program |
$2,000 |
$4,000 |
Market introduction |
|
Computer & Phone |
$1,500 |
$2,500 |
Laptop + mobile |
|
Equipment & Uniforms |
$3,000 |
$5,000 |
Cones, hurdles, ladders, kit |
|
Insurance |
$500 |
$1,000 |
General liability |
|
Office Expenses |
$500 |
$1,000 |
Home-based setup |
|
Signage |
$600 |
$1,000 |
Banners, car magnets |
|
Licenses & Permits |
$500 |
$1,000 |
Local business filings |
|
Professional Fees |
$1,000 |
$2,500 |
Legal & accounting |
|
Training Expenses |
$1,500 |
$3,000 |
Travel, 3-5 days at HQ |
|
Working Capital (3-4 months) |
$20,000 |
$25,000 |
Operating reserve |
|
TOTAL INVESTMENT |
$46,100 |
$61,000 |
|
Note: Investment range reflects variation in market conditions and franchisee preferences. No facility lease or build-out required.
5-Year Financial Projection
Based on UK operating prototype performance. Not a guarantee of results.
| Year | Gross Sales | EBITDA | ROI |
|---|---|---|---|
|
Year 1 |
$225,000 |
$45,010 |
84.1% |
|
Year 2 |
$281,250 |
$70,478 |
131.6% |
|
Year 3 |
$337,500 |
$95,887 |
179.1% |
|
Year 4 |
$388,125 |
$118,492 |
221.3% |
|
Year 5 |
$446,344 |
$144,736 |
270.3% |
Ongoing Fees
Franchisees contribute to both their local market and the national brand through royalties and marketing programs.
Royalty Fee:
7% of gross sales, monthly
Corporate Marketing Fund:
2% of gross sales, system-wide
Local Advertising:
Up to 5% of gross sales, local market