🍟 12/7/2023 – Two Niche Franchises With Impressive Returns
FRANCHISES OF THE WEEK
1) Music Go Round
Fast Facts
Background
- HQ: Minneapolis, MN
- Founded in 1986, franchising since 1994
- Music Go Round is a music store that specializes in buying, selling, and trading new and used musical instruments and equipment
Location Trends
Franchise Fees
- Royalty: 4%
- Brand Fund: $1,500/y
- Franchise Fee: $25,000
Financial Overview
- The below table discloses information on 36 franchised Music Go Round Stores for the fiscal year ended December 31, 2022.
The Wolf’s Take 🍟
Retail franchises aren’t as common in the franchise world, but Music Go Round appears to have carved out a small niche in resales of music instruments and equipment.
It’s anyone’s guess (unless you’re in the music biz maybe?) what the margins are on a resold guitar, but almost $1.3M in revenue off of an investment that falls just short of $400k looks worthy of diving deeper into.
Check them out via the link below if the business interests you!
Resources
2) YESCO
Fast Facts
Background
- HQ: Salt Lake City, UT
- Founded in 1920, franchising since 2011
- YESCO, or Young Electric Sign Company, is a renowned American sign and outdoor advertising company with a history in designing and manufacturing signage solutions
Location Trends
Franchise Fees
- Royalty: 6%
- Brand Fund: 3%
- Franchise Fee: $50,000
Financial Overview
- The below table discloses information on 56 franchised YESCO® businesses that were open and continuously operated by franchisees during the period from January 1, 2022, to December 31, 2022
The Wolf’s Take 🍟
YESCO is a unique B2B service franchise. Like any other service based franchise, you don’t need a brick & mortar buildout.
The franchisor seems to generate leads for franchisees, which if they truly deliver on that, can be a major benefit for franchise owners. They also have their own software that franchisees utilize.
Between the niche industry they operate in and the professionalization they’ve built into the model, this could be a good service franchise for aspiring entrepreneurs who don’t want to be in brick & mortar.
Resources
FROM THE POD
Dan Giacomazzi and Artem Lopatchenko – Ace Handyman Services
This was a super fun conversation with college friends and now business partners of Ace Handyman Services.
Check out our conversation here!
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