🍟 3/28/2022 – A Scalable Cleaning Franchise
David Beckham Partners in F45 London Studio
The soccer star has been partnered with the brand since August, and is expected to help grow the brand internationally via a number of marketing initiatives.
He’s now taking a more active approach and is putting real capital behind studios in the London market. The United Kingdom in total has 63 F45 training studio’s.
The Wolf’s Take
Beckham doubling down is a great sign for the belief he has in the fitness franchise, which has been an incredible brand since it’s inception in 2011.
A partnership of this magnitude isn’t uncommon for the fitness giant either.
They already have relationships with actor Mark Wahlberg, who is an investor in the company and a franchisee, as well as former basketball star Magic Johnson, golfer Greg Norman and model Cindy Crawford.
Related: Check out my interview with a multi-unit F45 owner in Ireland!
Burger King Brazil Launches Poop Emoji Ice Cream Campaign
The campaign is highlighting that their formula is free of artificial ingredients!
IHOP Partners With Pepsi on Maple-Syrup Soda
I can’t tell if this is genius or disgusting..?
- Founded: 1965
- Units Open: 40,000+
- Investment Range: $140K – $342K
- Average Revenue per Location: ~$420,000
Did You Know?
Subway serves about 5,300 sandwiches every 60 seconds, which is roughly 320,000 sandwiches every hour. Or think of it like this: 7.6 million subs every day!
Is there a brand you’re curious to know the financials of? Reply to this email and let me know!
FRANCHISE OF THE DAY
- Founded in 2013, franchising since 2019
- Based in California, Tennessee; 3 locations open as of 2022
- A residential cleaning business that uses sub-contractors
Fees + Investment
- Royalty: 6% of gross sales
- Brand Fund: 2% of gross sales
- Franchise Fee: $35,000
- Initial investment: $47,600 – $66,650
- The below information contains performance data from the company owned business for both 2019 and 2020
The Wolf’s Take
Residential house cleaning, like much of home services, is full of operators that run their business like it’s 1999.
Fax machines, paper quotes, no online booking, etc.
It’s an industry that has started to get disrupted by a few younger, smart entrepreneurs who don’t mind that it’s not considered a “sexy” industry. MaidThis is doing just that with their business model.
A Different Model
Most service businesses are pretty difficult to scale. As you build up a book of business and look to expand, the only way to do so is to keep hiring more cleaners as revenue grows.
MaidThis has a different strategy: rather than doing the work to hire and manage all that labor, they simply sub-contract that work out.
For those who aren’t aware, sub-contracting means that when a customer books a cleaning service with MaidThis, rather than a MaidThis employee showing up to do the job, they send another contractor to do the physical labor.
In exchange for doing the labor, that contractor earns a portion of the revenue from that job, while MaidThis also earns a piece of the job since it was their lead.
By focusing on sending the majority of leads to sub-contractors, MaidThis has changed the model – they’re not really in the residential cleaning business as much as they’re a digital marketing company focused on residential cleaning.
Why I Love It
It’s a low investment, and the company-owned business shows very strong returns (keep in mind you’d have to pay royalties – but there’s still plenty to be made).
The biggest reason by far however is that they’re a digital marketing company in an industry that hasn’t evolved with modern technology.
If you’re interested in a scalable home-services model, I would absoultely check out MaidThis!
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