🍟 6/29/2023 – A Candy Shop Franchise With 86 Locations

FRANCHISES OF THE WEEK

1) Beef-A-Roo

Fast Facts

Background

  • HQ: Dallas, TX
  • Founded in 1967, franchising since 2022
  • The Beef-a-Roo menu features a lineup of bun sandwiches and wraps dominated by meat offerings, as well as salads, fries and baked potatoes. 

Franchise Fees

Financial Overview

  • The below table contains a historic financial performance representation about 7 affiliate-owned outlets that continually operated from January 1 through December 31

The Wolf’s Take 🍟

Beef-A-Roo has been around for quite some time – being founded all the way back in 1967.

Yet they’ve only recently begun franchising, and for a restaurant they’re showing very impressive average unit volumes of $2.9 million.

A large subset of Wolf Report subscribers are interested in restaurants (or already own them), so if you’re looking for a newer fast-food joint to take a look at, Beef-A-Roo may fit the bill with its lower investment relative to legacy competitors.

Resources

2) Rocket Fizz

Fast Facts

Background

  • HQ: Reno, NV
  • Founded in 2009, franchising since 2010
  • Rocket Fizz is a franchise chain of stores specializing in soda, candy, and novelty items, marketing a diverse variety of candies and producing its own line of soft drinks with unique flavors.

Franchise Fees

  • Royalty: 5%
  • Brand Fund: 1-2% 
  • Franchise Fee: $54,000

Financial Overview

  • The below table discloses information on actual historical unaudited information received from Rocket Fizz franchisees for 77 franchised Rocket Fizz Shops that were open for business at least one year on December 31, 2022.

The Wolf’s Take 🍟

There seems to be a trend forming with beverage franchises like Rocket Fizz, with instagrammable drinks being served on the regular.

Rocket Fizz is a bit different though as it’s also a candy shop (a first for me to see being franchised – although as I’m writing this I’m thinking the the IP owners of Willy Wonka should franchise a candy shop under that brand 🤣).

The stores itself have a retro vibe too it, which could be quite a hit with the right demographic. I’m unsure the margins on this, as it’s not your typical food & beverage concept. If it’s around the 10% that a typical restaurant concept makes, this wouldn’t be as attractive.

But if there are higher margins – the economics could end up being attractive with multiple units!

Resources

FROM THE POD

Dan D’Aquisto – 2ULaundry

Following up on my deep dive of LaundroLab this past Monday, if you want to hear directly from the co-founder, Dan D’Aquisto, you can listen to the conversation here!

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