Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$45K - $57K
- Units as of 2021
Here’s what you need to know if you’re interested in opening a Cocktail Claw franchise.
Cocktail Claw, founded in 2020, is a claw machine rental service that focuses on parties and get-togethers for an adult audience. Cocktail Claw’s unique entry into the amusement machine rental service may help set them apart in the industry. The market for amusement machines could be strong, and any uniqueness within that market could draw eyes to the product.
Cocktail Claw utilizes its services to enhance an already great event into something even better. Any company that delivers fun inside an amusement machine may already score points with the public, and Cocktail Claw believes it delivers that in spades.
Cocktail Claw began franchising in 2021 and is actively seeking to expand its reach even further.
Why You May Want To Start a Cocktail Claw Franchise
Cocktail Claw provides a new twist on old-school claw machines. Cocktail Claw houses miniature bottles of alcoholic beverages for party-goers to win using the machine. It’s a unique concept within the industry, and the company partners with the event organizer to supply the alcohol for the event.
The market for parties and events is typically high and will always be there to varying degrees. This market can adapt to indoor and outdoor events, potentially insulating the franchisee from sales dips due to weather-related issues.
The Cocktail Claw franchisee should deliver the machine to the event and oversee the machine while in use. They should also provide load-out and clean-up. The delivery and extrication of the machine and clean-up of the surrounding area may provide good value for the event organizer.
What Might Make a Cocktail Claw Franchise a Good Choice?
Cocktail Claw machines may set themselves apart from other amusement device providers who mainly focus on children’s events and other family-orientated get-togethers. This uniqueness could provide Cocktail Claw franchisee with opportunities to garner repeat business in the adult party sector with word-of-mouth advertising to others.
To be part of the Cocktail Claw franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company’s set net worth and liquid capital requirements.
Cocktail Claw has partnered with third-party financial lenders that may help cover the costs of the franchise fee, startup, equipment, inventory, accounts receivable, and payroll if you meet their qualifications.
How to Open a Cocktail Claw Franchise
As you decide if opening a Cocktail Claw franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Cocktail Claw would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
As part of your due diligence, you may want to speak to existing franchisees and ask the Cocktail Claw franchising team questions.
About Cocktail Claw
- Franchising Since
- 2021 (1 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Missouri, Mississippi, Montana, North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, West Virginia, Wyoming
- # of Units
- 1 (as of 2021)
- Corporate Address
1 Oakwood Ave., #542
Dayton, OH 45409
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Cocktail Claw franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $45,300 - $56,800
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 5 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Cocktail Claw has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 17-27 hours
- Ongoing Support
Grand OpeningSite Selection
- Marketing Support
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Cocktail Claw? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Cocktail Claw.
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