🍟 11/3/2022 – A Laundry Franchise That Prints Cash

FRANCHISES OF THE WEEK

1) LaundroLab

Fast Facts

Background

  • Founded in 2018, franchising since 2020
  • Based in Charlotte, North Carolina; 1 location open at the start of 2022
  • Upscale laundromats for all communities

Fees + Investment

  • Royalty: 6%
  • Brand Fund: 0% 
  • Franchise Fee: $49,500
  • Initial Investment: $1,167,500 – $1,721,200

Financial Performance

  • The below table disclose information from LaundroLab’s affiliate location in 2018 (July – December), and full years 2019, 2020, and 2021

The Wolf’s Take 🍟

LaundroLab is one of the most interesting franchises out there, as they’re innovating within the $5B laundry industry. 

Part of the strategy is raising the bar for what a laundromat can be. Most laundromat’s are dingy, dirty, and not a place you want to spend much time in.

But a LaundroLab has clean facilities, cashless payment options, free wifi, TV’s, vending machines, arcade games, and more. It can be a destination that keeps you (and the family) busy while you’re doing your laundry.

They’ve been able to do all this while maintaining impressive unit economics. Yes, it’s a hefty investment range, but the cashflow of $310K on their affiliate location is very healthy, and represents a 23% jump from 2020.

They’ve also had some big time franchise owners (such as a multi-unit McDonald’s owner) buy into the system, which is a great sign of validation for this concept.

Check them out if you want to be a part of the laundry revolution! 

Resources

2) Maaco

Fast Facts

Background

  • Founded in 1972, franchising since 1972
  • Based in Charlotte, North Carolina; 411 locations open at the start of 2022
  • Net Unit Growth 2019 – 2021: -60
  • Auto painting and collision repair

Fees + Investment

  • Royalty: 9%
  • Brand Fund: $1,000/week
  • Franchise Fee: $45,000
  • Initial Investment: $281,000 – $495,500

Financial Performance

  • The below financial performance includes the average and median gross receipts and certain cost and expense information for the 2021 Fiscal Year, as reported by 160 Maaco Centers

The Wolf’s Take 🍟

Maaco is a longstanding franchise that specializes in auto collision repair and paint jobs. 

As mentioned before, from time to time I will now cover brands that have been around for decades and could be ripe for the entrepreneurship-through-acquisition playbook. 

Maaco may not be a sexy business, but 18.5% margins are legit.

Not to mention that Maaco is under the Driven Brands umbrella. Driven Brands owns a variety of franchises in the automobile industry, such as Meineke, Take 5 Oil Change, Auto Glass Now, 1-800 Radiator & A/C, and more. 

Buying into Maaco means being apart of a platform that can help cross sell customers, and even lead to more acquisition opportunities in other brands!

Resources

FROM THE POD

Brian Scudamore – 1-800-GOT-JUNK

From College dropout to founder & CEO of a $600M+ empire.

Brian Scudamore started 1-800-GOT-JUNK as a way to pay for college. Eventually he’d drop out to take it on full time.

Today, his holding company O2E Brands owns 3 franchises (Shack Shine, WOW 1 Day Painting, and 1-800-GOT-JUNK), which do $600M+ in revenue.

We talk about all his brands, and explore topics such as:

  • How to make hiring decisions
  • Why $1M in revenue is harder than $1B
  • How some of his franchisees are doing $100M in revenue

Check out our conversation here!

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