Miracle-Ear franchise

Hassle-free business loans to start your Miracle-Ear franchise.

Miracle-Ear are the leading retailer of hearing aids in the US. The company offers products and services to people who are suffering hearing loss and provide check-ups to measure the state of their affliction. If you’re looking for a recession-proof franchise, this might be it, as America’s rapidly ageing population presents significant room for growth.

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Miracle-Ear business details

Miracle-Ear were founded in 1948 and were the first to put a transistor in a hearing aid, allowing the device to be smaller and less conspicuous. Today, the company operates over 1,500 hearing centers across the US and has sold millions of hearing aids during 75 years in business. Miracle-Ear are a subsidiary of Amplifon, the worldwide leader in hearing care and hearing aid technology based in Milan, Italy.

Miracle-Ear at a glance:

  • Stores: 1,500+
  • Required investor net worth: $100,000 
  • Required investor liquid cash: $50,000
  • Minimum investment: $122,000
  • Maximum investment: $570,000

Can I start a Miracle-Ear franchise?

Miracle-Ear franchise applicants must have a net worth of at least $100,000 and minimum liquid assets of $50,000. Apart from these financial requirements, there are few other obstacles to franchise ownership. If you qualify, you must expect to be on-site, actively managing the business every day, as Miracle-Ear do not permit semi-absentee owners. This is not a franchise for those seeking passive investment. 

How much does a Miracle-Ear franchise cost?

Compared to other retail franchise opportunities, opening a new Miracle-Ear store is relatively low cost. Depending on location, size of your store, the complexities of construction, the size of your retail team, and other variable factors, costs for a new store can range from $122,000 up to $570,000.

However, even though the initial entry price is low, after opening, you can expect to pay a wide array of monthly and ad-hoc operating costs, including:

  • Royalty Fee: $48.80 for every Miracle-Ear hearing aid and $30.15 per Audio Tone Pro you sell
  • CRM Fee: Varies by size of your store. Not to exceed $750 per month per location
  • Software Access Fee: $95.68 per month for each full-time or part-time location, and $47.83 per service location – all increasing annually based on CPI
  • Local advertising expenditures: At least 10% of net sales
  • Regional Cooperative Advertising: Not to exceed 10% of net sales
  • National Marketing Fund Contribution: $25 or $75 per hearing aid ordered
  • IHS Membership: $2 per hearing aid sold
  • Experience Enhancements: Not more than $5,000 per location

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Estimated key costs to open a Miracle Ear franchise (new store):

Key Costs GuideLowHigh
Franchise fee$30,000$30,000
Pre-paid expenses - franchise$0$2,500
Pre-paid expenses - location$1,000$5,000
Property build-out costs$2,000$150,000
Furniture, fixtures and equipment$30,000$60,000
Opening inventory$5,000$10,000
Signage$1,500$10,000
Training expenses$1,500$5,000

Are Miracle-Ear franchises profitable?

They appear to be, as according to external research, the average profit margin per store is 10% and on the high end of typical retail profits. The average price paid for a Miracle-Ear franchise is $236,000 and the average annual sales are $414,000, presenting a sales-to-investment ratio of 1.8. At this pace, it will take 5-6 years to recoup the initial investment – a strong performance that is ahead of many other retail franchise opportunities.

What is the failure rate for a Miracle-Ear franchise

Franchise failure falls into three categories: franchise terminations, non-renewals, and failures for other reasons, (often bankruptcy). It is not possible to determine why many franchises fail, but in the three years period 2017 through 2019, Miracle-Ear saw the closure of 217 stores – almost 15% of the 1452 of stores operating at the end of 2019. A 15% failure rate is in line with other comparable retail operations.

Why should you start a Miracle-Ear franchise?

Relatively low investment cost, no need for huge liquid assets, above average profit margins, and the potential for growth driven by an ageing population all signal that buying a Miracle-Ear franchise may be a good investment opportunity. However, keep in mind the fairly hefty monthly fees and the franchise failure rate – it is average for the general retail industry, but it is above the failure rate for many other types of franchise opportunity.

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What are the franchise territory policies for Miracle-Ear?

Miracle-Ear offers its franchisees exclusive operating territories. They do not authorize any other franchise or operate a competing business in the protected area.

What franchise resources does Miracle-Ear offer?

Miracle-Ear provide comprehensive support to their franchisees. Available resources include:

  • Marketing support: Miracle-Ear has dedicated marketing and advertising strategies to help franchisees create awareness of their outlets and boost profitability. Franchisees can leverage strong brand popularity, ad templates, email marketing, regional advertising and targeted promotional campaigns to reach their target market.
  • Third-party financing: Miracle-Ear does not offer franchise funding for investors seeking financial support to cover costs such as the franchise fee, startup costs, and payroll. Instead, you should work with the many independent funders who provide business loans to franchise operators.
  • Training: The company provides the franchisee’s initial franchise-training program (new franchisee business workshop). This usually occurs over a one-week session conducted by Miracle-Ear field operations staff and internal trainers, providing franchisees with 34 hours of classroom and on-site training to help them learn the basics of the company and manage their stores. In addition, Miracle-Ear trains investors on launching their outlets and offers periodic performance reviews and sales training.
  • Site selection: The franchisor provides its franchisees with site selection guidance to identify a suitable outlet location.

What is the process for starting a Miracle-Ear franchise?

It begins with an initial application, which you can start here. If you meet the brand’s selection requirements, (and you can launch a store in their available locations), you may qualify to open a Miracle-Ear franchise. After receiving approval, get started with an initial investment, followed by a period of intensive training.

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Testimonials

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Miracle-Ear: https://www.miracle-ear.com/franchise-opportunities

Ageing population: https://www.pbs.org/newshour/nation/with-growing-population-of-aging-americans-u-s-median-age-jumps-to-nearly-39

Profitability: https://sharpsheets.io/blog/miracle-ear-franchise-sales-costs-profits/

Failure rate: https://www.vettedbiz.com/top-50-franchise-failures-you-need-to-know/

Application process: https://www.miracle-ear.com/franchise-opportunities/start-a-miracle-ear-franchise

Independent funders: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

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