🍟 8/18/2022 – Coding for Cash
FRANCHISES OF THE WEEK
1) The Coder School
Fast Facts
Background
- Founded in 2014, franchising since 2015
- Based in California; 52+ locations open at the start of 2022
- Provides Coding education for kids ages 7 to 18
Fees + Investment
- Royalty: 5%
- Brand Fund: 1%
- Franchise Fee: $29,950
- Initial Investment: $75,250 – $150,650
Financial Performance
- The below tables provide revenue and EBITDA performance data from 40+ franchisees in 2021
The Wolf’s Take 🍟
The Coder School has a low investment profile for a retail franchise, a clear niche it’s targeting, and healthy growth since it started franchising in 2015.
Education franchises in general fared okay during covid as they were able to pivot to online classes, and The Coder School was no different.
Coming out of covid they now have a stronger offering, as remote learning options have been integrated into their services. With the demand for digital products and services increasing every day, coding is a skill that will be needed for years to come – and The Coder School’s brand makes it clear who their customer is.
With average EBITDA of ~$92K off of a $150K investment, this franchise has a very healthy ROI that can start to compound with multiple units!
Resources
2) Hounds Town
Fast Facts
Background
- Founded in 2001, franchising since 2008
- Based in New York; 21+ locations open at the start of 2022
- Dog daycare, pet boarding, pet grooming
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $49,000
- Initial Investment: $358,900 – $770,000
Financial Performance
- The below tables disclose revenue statistics from franchisees in 2021, as well as two income statements from two different franchisees
The Wolf’s Take 🍟
Hounds Town is a fully interactive dog daycare, grooming, and boarding facility, and was founded in 2001 by Mike Gould, a founding member of the NYPD K-9 unit.
Mike’s experience with dogs is unique as he pioneered the use of canines in the police force in the early 80’s. His leadership, combined with an exploding pet industry and a concept with some promising data thus far makes it worth diving into.
There’s certainly varying performance among the daycare centers, with the more established locations performing the best. Outside of time, a number of things such as the competency of the owner, location of the facility, size of the facility, etc. can be impacting performance.
A few things are clear about Hounds Town though:
- The initial investment is far more attractive than other daycare franchises (for instance, 1 Dogtopia franchise will cost $543K – $1.5M 😲)
- Early data shows thatt over time Hounds Town could be a great multi-unit investment
If you’re exploring pet concepts, give this brand a look!
Resources
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