🍟 6/2/2022 – Dirty Dough Is Set To Take On Crumbl

FRANCHISES OF THE WEEK

1. Dirty Dough

Fast Facts

Background

  • Founded in 2018, franchising since October 2021
  • Based in Utah; 5 locations open at the start of 2022
  • A gourmet cookie franchise with the tagline “Proudly unique, inside and out”, referring to both their cookies and their people!

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 3%
  • Franchise Fee: $39,500
  • Initial Investment: $160,600 – $385,000

Financial Performance

  • The below data represents the gross revenue of Dirty Dough’s affiliate location in Tempe, Arizona in 2021 (broken down on a quarterly basis)

The Wolf’s Take 🍟

Despite having only started franchising in October of 2021, Dirty Dough was able to sell 4 franchises before the year ended.

Total revenue for their affiliate location came in at $461,544 in 2021, off an investment range with a midpoint of $272,800.

It has to be said that given the success of Crumbl Cookies, new entrants were bound to come into the market. Dirty Dough’s unit volume may not be close to Crumbl’s yet, but their investment is lower (Crumbl’s is roughly $350k – $570k), and they do look like a formidable brand with potential.

They’ve brought in Jill Summerhays, the founder of Hawaiian coffee and smoothie franchise Maui Wowi, a brand that’s grown to as high as 220+ locations, to be the CEO.

While it’s still early days for this brand, if you’re in the market for a cookie concept, you can get in touch with Dirty Dough via the link below!

Resources

2. Woofie’s

Fast Facts

Background

  • Founded in 2004, franchising since 2018
  • Based in Virginia; 4+ locations open at the start of 2022
  • Pet sitting, dog walking, mobile pet grooming

Fees + Investment

  • Royalty: 8%-6.5% (scales lower as revenue increase)
  • Brand Fund: Currently 1%, can be raised to 2% over time
  • Franchise Fee: $48,500
  • Initial Investment: $125,319 – $209,801

Financial Performance

  • The below tables contain gross sales data from 3 franchisees in 2021, as well as as gross sales from the company owned outlet less expenses

The Wolf’s Take 🍟

Woofie’s is a pet franchise that’s benefitting from the boom in pet ownership nationwide. 

They offer multiple revenue streams to franchise owners via dog sitting, walking, and grooming.

Their corporate location did a ridiculous $2.4M in total revenue, but I am surprised that EBITDA was just 11.1%. That’d be a question to ask reps at the franchisor.

A franchisee also did $863K in 2021 revenue – given that’s 4x the highest investment level of $209K, that’s typically a great ROI for a brand regardless of the industry.

But in this case, understanding the scalability of this business from a macro level would be my main agenda if I was to explore this brand further.

X-Factor

Woofie’s was also acquired by Authority Brands in January of this year.

Authority is a massive holding company of home-service brands with hundreds of franchisees like Monster Tree Service, Mosquito Squad, a dog-poop cleanup franchise called Doody Calls, and many more!

I love this acquisition because they can leverage all the homes they’re already in via home-services to promote Woofie’s (and thankfully, 70% of households in America now own a pet!).

Check out Woofie’s if you’re looking for a pet franchise with a possible X factor!

Resources

Disclaimer: This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All Content in this email is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the email constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content in this email before making any decisions based on such information or other Content.