🍟 7/14/2022 – A 147 Percent Return On Investment

FRANCHISES OF THE WEEK

1) Hawaii Fluid Art

Fast Facts

Background

  • Founded in 2020, franchising since 2022
  • Based in Hawaii; 3+ locations open
  • Provides instruction, materials, set-up and cleaning of acrylic painting

Fees + Investment

  • Royalty: 8%
  • Brand Fund: 2%
  • Franchise Fee: $49,500
  • Initial Investment: $113,300 – $194,800

Financial Performance

  • The below table displays the performance of the affiliate location in 2021

The Wolf’s Take 🍟

I’ll be honest – I was pretty surprised to see the profitability as high as it is, but I guess people wanna feel like Pablo Picasso every now and again?

$286K in EBITDA via a $195K investment is a lot of dough from acrylic painting classes, and represents a 147% ROI.

I’d be really curious to understand the pricing model, as well as hear the franchisors thoughts on how sustainable the model is.

This is of course a very new franchise with the financials being based off just a single location, but in pure box economics this is one of best ROI’s I’ve seen.

Resources

2) Fastest Labs

Fast Facts

Background

  • Founded in 2000, franchising since 2010
  • Based in San Antonio; 62+ locations open
  • Drug, alcohol, and DNA testing, background screening

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 2%
  • Franchise Fee: $49,500
  • Initial Investment: $91,150 – $122,700

Financial Performance

  • The first table below shows the adjusted earnings from 1 affiliate location, while the second shows the average gross revenue from 36 franchised locations

The Wolf’s Take 🍟

Fastest Labs offers a low investment for a brick & mortar brand, and shows the potential for a very healthy return if you look at the affiliate locations numbers.

Just like a previous franchise I covered called Any Lab Test Now, Fastest Labs is solving for a similar problem:

  • People wait 1 hour+ to see a doctor and get a lab test
  • Many people don’t get the tests because of the prices
  • Lab tests are traditionally expensive and you don’t always get the results delivered to you

With Fastest Labs the pricing is transparent and you can be an in out very quickly.

My only question mark is why the highest performing franchised locations seem to top out at just below $300K in revenue (while the affiliate is at $600k), but nonetheless the franchise has an interesting model!

Resources

FROM THE POD

David Weis – Mayweather Boxing & Fitness

This week’s podcast is with David Weis of Mayweather Boxing, where we took a deep dive into the fitness industry and how it’s changed over the years.

David has worked in fitness his whole career, going from trainer, to gym owner, and now to franchise owner.

David explains why boxing is a complete body workout and has longevity, which he’s not as confident relative to other boutique fitness concepts.

If you’re in (or want to be in) the fitness franchise world, click here!

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