Rocket Fizz Franchise Cost, Profit, & Failure Rate 2024

Are you interested in owning a Rocket Fizz franchise store? The brand has been going through some tough times, and you might wonder if it would be a good decision. That is an understandable question, and it depends on what you are looking for.

Rocket Fizz Franchise Cost

In this article, we will talk about Rocket Fizz, its franchise system, what you should expect, costs and revenue, and all other things they offer. This will help you to make your decision easier.


About Rocket Fizz And Rocket Fizz History

Rocket Fizz is a retail franchise chain of stores selling soda, candy, and other similar novelty products. The company’s specialty lies in various candies and its own soft drink line with different and unique flavors. The company was founded in 2007 and started to franchise in 2010, which helped them grow quickly.

The company had some turmoil in 2023, which led them to close some of their stores, but they still have over 80 stores and an active franchise.

Their franchise system focuses on bringing new franchisees and helping them succeed. Despite the challenges, the company has never stopped franchising since it first started in 2010.


Franchise Model Table

Cost Or FeesAmount
Initial Investment      $125,000-$266,000
FranchiseYES
Franchising Since2010
Franchise-Fee$54,000
Royalty-Fee$900 or 5%
Liquidity$80,000-$100,000
Estimated Outlets80+

How Much Does It Cost To Open A Rocket Fizz Franchise?

The average cost to open a Rocket Fizz franchise varies between $125,000 and $266,000. This cost includes the $54,000 franchise fee and all other related startup costs for a Rocket Fizz franchise outlet.

Depending on different factors like the size and the location, the exact numbers might be different than this average. The number comes from the company’s own estimation and the existing franchisees’ spending on their stores.


Franchise Requirements Of Rocket Fizz

The franchisees do not need to have previous retail or industry experience. The franchisees also do not need to have managerial or similar experience to manage the store. Their training program aims to teach you both things.

However, the potential franchisee must possess liquidity of between $80,000 and $100,000 as a financial requirement. There is no requirement for net worth, but liquidity is a must.


Rocket Fizz: Profit & Revenue

According to the latest available document, the company’s total gross revenue in 2021 was $2 million. This is the company’s gross income for that year, including sales, royalties, and all others. Of that $2 million, the net profit for the same year was $1.3 million. This represents a massive profit margin.

Moreover, the average gross revenue of a Rocket Fizz franchise owner is $488,487 annually. And as per an estimated profit margin of 15%, they make $73,273.05 in profit each year on average.

The table below shows how the profit is calculated on the basis of average franchise annual revenue:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%488487.00
Rent10.63%(51901.74)
Insurance5.31%(25950.87)
Salaries21.25%(103803.49)
Franchise Royalty Fees5.31%(25950.87)
Utilities2.13%(10380.35)
Cost of Goods Sold (COGS)26.56%(129754.36)
Labor (Variable)13.81%(67472.27)
Total (Expenses)85.00%(415213.95)
Net Profit15.00%73273.05

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Overall Sales Of Rocket Fizz

The franchise disclosure document shows that the average gross revenue for a franchised Rocket Fizz outlet is $488,487 annually. The highest revenue for a store was $1.3 million, and the lowest was $192,393.


Failure Rate Of Rocket Fizz

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20199082-8
20208279-3
20217981+2

For the Franchised outlets:

  • In 2019, the failure rate was (8)/90×100≈8.88%
  • In 2020, the failure rate was (3)/82×100≈3.65%
  • In 2021, the growth rate was (2)/79×100≈2.53%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201952-3
2020220
202122

For the Company-Owned outlets:

  • In 2019, the failure rate was (3)/5×100≈60%
  • In 2020, the failure rate was (0)/2×100≈0.00%
  • In 2021, the failure rate was (0)/2×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20199584-11
20208481-3
20218183+2

For Total outlets:

  • In 2019, the failure rate was (11)/95×100≈11.57%
  • In 2020, the failure rate was (3)/84×100≈3.57%
  • In 2021, the growth rate was (2)/81×100≈2.46%

According to the above-mentioned data, we can see that the franchised outlets for Rocket Fizz declined from 2019 to 2020, showing a failure rate between 8.88% and 3.65%. Later, in 2021, the outlets started increasing, showing a growth rate of 2.53%.

On the other hand, for company-owned outlets, the failure rate of Rocket Fizz was lying in the range between 60% and 0.00% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Rocket Fizz franchise has declined in the years 2019-2021 showing a total failure rate between 11.57% and 2.46%.


Payback Period Of Rocket Fizz

With an investment of $266,000 and an estimated 15% profit on the average revenue of the Rocket Fizz franchise, the yearly profit would be $73,273.05.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $266,000 / $73,273.05= 3.63 years

Based on these figures, it will take approximately 4 years to pay back the initial investment for Rocket Fizz. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Training and Support Of Rocket Fizz

There is an initial training program provided by Rocket Fizz prior to the opening of the franchised outlet. This training program takes place in their training facilities in California or a designated Rocket Fizz shop.

It encompasses 70 hours of training, most of which is on-the-job training and aims to teach Rocket Fizz systems, standards, marketing, customer service, and any other important operational topic. There might be additional training as needed post-opening.

As part of their support program, the company provides help both before and after the opening. They help with site selection, lease negotiation, on-site opening assistance, and continuous training programs for the franchisee and chosen general managers for the store.


Terms of Agreement and Renewal

The initial term of the agreement is for ten years. Once the ten years is over, a renewal is possible. Both sides need to agree to this renewal, and the franchisor must approve the renewal request. The renewal is for an additional term of five years, and the renewal fee is $5,000.


Obligations and Restrictions

The franchisee is obligated to operate their Rocket Fizz franchised outlet in compliance with Rocket Fizz’s manual and procedures. The owner of the franchisee is also obligated to oversee the daily operations and activities of the shop by being present in the store. Rocket Fizz will provide certain guidelines, requirements, restrictions, and prohibitions for the franchisee to follow on its systems.

All the products and services that the store sells must be sold in accordance with Rocket Fizz’s requirements. The franchisee also can’t sell products or services that Rocket Fizz didn’t approve of.


Financial Assistance

Rocket Fizz offers both direct and indirect financial assistance. However, indirect financial assistance only covers the franchise fee and depends on the individual situation of the franchisee.

They also have relationships with third-party lenders, which allow franchisees to make contact with them. This type of financial assistance generally covers most costs, like the startup costs, including the inventory, equipment, payroll, and others.

Entrepreneurs considering a venture into the soda franchise sector might explore options such as Swig franchise.


Rocket Fizz Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Sweet Factory$35,0005%$171,000-$1.1 million
Fuzziwig’s Candy Factory$30,0006%$184,000-$363,350
Rocket Fizz$54,000$900 or 5%$125,000-$266,000

Conclusion

Rocket Fizz is a retail franchise chain offering candies, sodas, and other similar products. They have been going through hard times as they have closed many stores due to financial constraints. In the last financial report from 2021, the company made $1.3 million in net profit, but there are no other reports after 2021, which is not favorable for entrepreneurs.

However, they still franchise and have a low-cost entry point and a solid training system to enable the franchisees to succeed. That’s why it might be a profitable journey if you are open to taking on the risk of the brand itself.


FAQs

How much is a Rocket Fizz franchise?

One Rocket Fizz franchise outlet generally costs between $125,000 and $266,000. This includes the franchise fee and all other startup costs.

What is the annual revenue of Rocket Fizz?

The latest report is from 2021, and according to those numbers, the company’s annual revenue was $2 million in 2021.

What is the Rocket Fizz franchise fee?

The franchise fee for one Rocket Fizz franchise outlet is $54,000. This is a one-time fee that you pay when you sign the agreement.

Who founded Rocket Fizz?

Rocket Fizz was founded in 2007. It was founded by Robert Powell and Ryan Morgan.

How many locations does Rocket Fizz has?

Rocket Fizz has around 81 locations across the United States.

Who owns Rocket Fizz?

All the Rocket Fizz locations throughout the United States and Canada are franchised and independently owned and operated.

Where is Rocket Fizz headquartered?

The headquarters of Rocket Fizz is located in Cleveland, Ohio, United States.

Sources

https://www.franchimp.com/?page=pdf&f=102065_2022.pdf

https://en.wikipedia.org/wiki/Rocket_Fizz

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