🍟 10/27/2022 – A Mobile Car Wash With 10x Returns
FRANCHISES OF THE WEEK
1) Spiffy
Fast Facts
Background
- Founded in 2014, franchising since 2020
- Based in North Carolina; 4 locations open at the start of 2022
- On-demand car care
Fees + Investment
- Royalty: 7%
- Brand Fund: 2%
- Franchise Fee: $40,000
- Initial Investment: $101,500 – $181,400
Financial Performance
- The below table disclose information for the 21 affiliate owned SPIFFY businesses that have been open for 12+ months and that operated for all of 2021
The Wolf’s Take 🍟
Why do people order from Amazon Prime, call Ubers, and opt for delivery pizza?
1 word: convenience.
Spiffy is applying the same tactics but for car washes. Why drive out to a car wash and go through that process (though I think it’s fun AF on occasion) when you can have someone come to your house and wash it while the car is idle?
Better yet, if your back in the office – have it washed while you’re being productive at work! For franchisees, that means there’s certainly the option to win corporate contracts. B2B customers are less price sensitive and can fuel profit dollars.
While this business certainly requires labor to wash cars – given the low investment – almost $1.1M in revenue on average is sure to produce a decent ROI.
Resources
2) Smash My Trash
Fast Facts
Background
- Founded in 2016, franchising since 2018
- Based in Indiana; 163+ locations open
- Mobile commercial-waste compaction services
Fees + Investment
- Royalty: 8%
- Brand Fund: 1%
- Franchise Fee: $49,500
- Initial Investment: $339,850 – $400,500
Financial Performance
The Wolf’s Take 🍟
Smash My Trash is a junk removal franchise that’s exploded onto the scene in the last 6 years.
Last year the brand was only able to disclose the performance of 1 location in Houston that was doing ~$1.4M in revenue with ~$600k in EBITDA.
With more franchisees opened and operating, we thankfully have more data. Naturally, the average revenue and average EBITDA is far lower, but it is still displaying impressive ROI potential.
Ideally we’d see a quicker ramp-up than what the franchisees in months 12-15 are displaying, but there is certainly an uptick when you get to 16 months and beyond.
There are now more franchises playing in this space with the emergence of brands like Crushr and a few others, but SMT is the leader of the category.
Overall this is an innovative business that saves companies money by maximizing their dumpster capacity.
Check them out if you’re interested in non-brick & mortar and brands!
Resources
FROM THE POD
Brittany Driscoll – Squeeze
“At Drybar, we didn’t sell blowouts. We sold confidence”.
Brittany Driscoll is using past experience to build an amazing new franchise.
Squeeze is a modern day massage therapy provider with 50+ locations in development.
Brittany is building a company that maximizes the value and experience for customers, massage therapists, and franchisees alike!
Check out our conversation here!
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