🍟 7/7/2022 – Best Home Services Brand I’ve Ever Seen?
FRANCHISES OF THE WEEK
1) Generator Supercenter
Fast Facts
Background
- Founded in 2005, franchising since 2017
- Based in Texas; 31+ locations open at the start of 2022
- Standby generator sales, installation, and service
Fees + Investment
- Royalty: 4% on equipment sales, 6% on service & maintenance
- Brand Fund: Currently 0%, can be up to 1%
- Franchise Fee: $50,000
- Initial Investment: $434,950 – $858,250
Financial Performance
- The below tables represent performance data from 4 affiliate locations and 17 franchisee owned locations in 2021
The Wolf’s Take 
Ever have the power go out and…well….wish it didn’t? If so, you should buy a generator!
No seriously though, if you have the budget, it’s super clutch in times of need, as power usually goes out during big storms and other bad scenarios.
Generator Supercenter is putting up those BIG numbers by providing generators to home owners so they can be prepared for the worst.
Keep in mind that while those revenue numbers are impressive, the price they sell a generator is likely between $5,000 – $10,000 per unit. This is why their COGS are high too, because they’re purchasing at wholesale rates from Generac, then upselling it to homeowners.
Beyond the margin on the generators, they also charge for the installation, service, warranty, and monitoring.
It’s not a cheap franchise to get into by any means, as it demands a $1M net worth. But if you meet that requirement, this is a unique franchise opportunity to look into.
Resources
2) Superior Fence & Rail
Fast Facts
Background
- Founded in 2002, franchising since 2017
- Based in Florida; 35+ locations open at the start of 2022
- Fence sales and installation
Fees + Investment
- Royalty: 4-6% (based on revenue)
- Brand Fund: 1%
- Franchise Fee: $59,500
- Initial Investment: $133,000 – $209,300
Financial Performance
- The below table includes financial data from 13 franchisees that operated for the full year 2021
The Wolf’s Take
Earning 10x revenue relative to your investment is not something you see very often.
Based on the investment level, average revenue, and number of franchisees, this is one of the most impressive emerging home services brands I’ve ever seen. Assuming 20% net margins (not uncommon in home services) that’s $400,000+ in EBITDA for a franchisee.
I won’t belabor the point anymore than that – if you’re in the market for a home services franchise to generate cashflow, there’s no reason you shouldn’t be reaching out to Superior Fence & Rail!
Resources
FROM THE POD
Speer Group – 8 Mathnasium’s
This was an inspiring story from a husband-and-wife team.
One of my biggest takeaway’s was the patience they showed in growing their unit count. After building their first location in 2011, they didn’t expand to a second until 2014.
They cited those 3 years as time for them to learn the business inside and out. Once they did, they’ve been able to acquire locations and turn them around, brining them to 8 locations owned today.
To hear from The Speer Group, click here!
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