🍟 11/8/2021 – Diesel Barbershop
Cannabis Consumption Lounge Plans National Expansion
Bud’s Place, a startup franchisor of social cannabis consumption lounges, has partnered with a company called Status Group International to accelerate Bud’s growth.
Bud’s Place offers a safe & clean place to smoke and enjoy yourself, and has food and entertainment the same way a bar does for consumers of alcohol.
This story signals a trend that is in early innings but I expect to be major winners in over the next decade: cannabis businesses. Recreational marijuana use is steadily gaining legality across the country, and as it does, franchises like Bud’s place will only see increased demand.
Tim Tebow Partners With Clean Juice as Brand Ambassador
The former NFL player is an equity investor and will open new corporate restaurants
Shaquille O’Neal’s Big Chicken Franchise Signs Multi-Unit Deal
Shaq’s brand will be expanding to Seattle via experienced restaurant entrepreneurs
- Founded in 2011, franchising since 2017
- Based in San Antonio, Texas; 30 units open as of 2021
- A full service barbershop that gives you the classic garage feel for hair and beard needs
Fees + Investment
- Royalty: 7.5% of gross revenue
- Brand Fund: 1% of gross revenue
- Franchise Fee: $40,000
- Initial Investment: $336,500 – $413,500
- The following data is from a table that illustrates historical data from 5-6 affiliate locations. I have snipped the table to show the average total revenue and average net profit for each locations 1st-4th year of operations
The Wolf’s Take 🍟
Diesel shows healthy growth in revenue and profits from year 1 through year 4 for a handful of their affiliate locations. Their oldest store which has been open 8 years as of 2020, shows the highest revenue by a margin of $250k.
Barbershops – outside of a global pandemic – are typically very dependable businesses. Diesel looks to be a more unique brand with its vintage theme, especially when compared to the generic Supercuts/ Sports Clips/Great Clips franchises.
It’s early on in their growth with 30+ units open so if the haircare industry is of interest this is a good brand to look into!
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