🍟 9/29/2022 – A Food Franchise With 80% Margins?!
SPONSORED BY QUIQ CAPITAL
If you’re a business owner – franchise or not – you need capital if you want to expand.
Financing is a common path many owners take because it’s non-dilutive capital.
But the problem is many lenders are slow, require a lot of touch points, and aren’t upfront with candidates if they’re qualified for a loan or not.
Quiq Capital solves this via their Quiq evaluation technology that offers near real-time evaluation on whether or not they can help.
They are industry agnostic, and require just two years in business, a 600 FICO score, and $500k+ in annual gross revenue.
If you’re looking for financing between $300,000 – $5,000,000, think QUIQ!
FRANCHISES OF THE WEEK
1) DonutNV
Fast Facts
Background
- Founded in 2014, franchising since 2018
- Based in Orlando; 5+ locations open at the start of 2022
- A food truck that serves mini doughnuts, juices, coffee drinks
Fees + Investment
- Royalty: $125-$146/week
- Brand Fund: $200/month
- Franchise Fee: $59,500
- Initial Investment: $185,075 – $253,525
Financial Performance
The Wolf’s Take 🍟
Quite simply, these are the best margins I’ve ever seen from a food franchise.
How are they doing this?
Because it’s a mobile concept that doesn’t require the associated fixed costs of a brick and mortar business. Another plus is that it isn’t a full time gig – you bring the food truck to parties, festivals, carnivals, football games (if you’re in a college town), and collect the revenue.Â
I also am a big fan of their fixed dollar amount brand fund and royalty. A complaint I hear from successful franchise owners is that the % based royalty and brand fund system results in the top performing franchise owners subsidizing the lower performing ones – but a fixed dollar amount avoids.
Overall, this is a great portfolio addition to generate extra cash flow while not consuming all of your time as an operator. Check out DonutNV if you want a lower cost, higher margin food franchise!
Resources
2) Mighty Dog Roofing
Fast Facts
Background
- Founded in 2018, franchising since 2019
- Based in Omaha; 25+ locations open at the start of 2022 (190+ now)
- Residential and commercial roofing services, siding, windows, and gutters
Fees + Investment
- Royalty: 8.5%
- Brand Fund: 0%
- Franchise Fee: $59,500
- Initial Investment: $232,385 – $363,185
Financial Performance
- The below table is based on 5 Mighty Dog Roofing Businesses that have been open and operating for at least 12 months from April 1st, 2021 1 through march 31st 2022
- Note that the below financials are based
The Wolf’s Take 🍟
Like other home services businesses I’ve covered, Might Dog Roofing primarily uses subcontractors to actually do the roofing work required.
This model is getting more popular, as it’s lighter on labor, and heavier on marketing and lead acquisition – as many legacy home services owners have yet to truly integrate technology into their business (some are still using fax machines).
Obviously the numbers here speak for themselves. It wasn’t clear how many territories these franchise owners purchased, so keep that in mind, as well as the fact that it’s only 5 franchisees being represented.
Mighty Dog Roofing today has gone through exponential growth and is approaching 200+ territories. As always, if you evaluate a franchise, speak to as many existing owners as possible to get a full picture.
But if you want a home services business, Mighty Dog Roofing could be a good brand for you!
Resources
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