franchise financial

financial tank
Tanks are rented to customers and installed in their yard, creating long-term relationships using our "Worry Free" service to ensure dependable, safe service.

Where possible, portable bulk storage tanks are used to minimize your initial capital outlay.

 

Financial Information

The results from ownership of a 1st Propane® franchise depend on several items:
  • The level of superior service that you provide to your customers.
  • Your personal management skills.
  • The amount of time and effort that you put into the operation of the franchise.
  • Your utilization of your 1st Propane® training.
  • Your utilization of the 1st Propane® systems.
  • Your utilization of ongoing 1st Propane® support.

Regulations covering the sales of franchises prevent us from making representations regarding how much money you will make operating a 1st PropaneŽ franchise. However, we are permitted to present historic statistics of the past results of existing 1st PropaneŽ franchises.

Below we have presented two charts, both of which are extracted from our December 2006 UFOC (Uniform Franchise Offering Circular)**.

Chart #1: The high and average operating income (EBITDA) for all 1st Propane® franchises, presented by the year of their business.
  Year 1 Year 2 Year 3 Year 4 Year 5
High
$121,363
$173,964
$164,874
$228,610
$267,473
Average
$-1,683
$50,090
$70,778
$88,296
$118,961

Chart #2: The high and low startup costs for starting a 1st Propane® franchise. Remember most equipment and real estate can be financed or leased.
ITEM
LOW
HIGH
Initial Franchise Fee
$30,000
$30,000
Grand Opening Advertising
$4,000
$4,000
Computer Equipment
$500
$500
Insurance
$6,000
$12,000
Real Estate and Improvements
$10,000
$200,000
Propane Bulk Storage Facility
$5,000
$167,500
Equipment
$170,000
$190,000
Signage
$100
$2,000
Opening Inventory
$12,000
$18,000
Miscellaneous costs to begin operations
$1,000
$2,000
Travel and living expenses while training
$0
$3,000
Additional Funds (3 months)
$10,000
$25,000
     
Total Initial Investment
$248,500
 $652,500

** You will be presented a full copy of our UFOC as part of your investigation process.

**You should read the UFOC carefully and have it reviewed by a CPA and a franchise attorney before purchasing your 1st Propane® franchise.


Back to Franchise Program Home

Copyright© 1999-2007 1st Propane Franchising, Inc.
All rights reserved.