🍟 3/30/2023 – Dumpster Crushing Franchise $100K Returns
FRANCHISES OF THE WEEK
1) i9 Sports
Fast Facts
Background
- Founded in 2002, franchising since 2003
- Based in Riverview, FL; 202 locations open at the start of 2022
- i9 Sports offers youth sports leagues, camps, and clinics for boys and girls ages 3-14 in today’s most popular sports such as flag football, soccer, basketball, and baseball.
Fees + Investment
- Royalty: 7.5%
- Brand Fund: 1%
- Franchise Fee: $24,900
- Initial Investment: $59,900 – $69,900
Financial Performance
- The Chart below represents the financial information that was self-reported by 44 i9 Sports Franchises for the 12-month period beginning October 2020 through September 2021. All 44 Franchise Units were open and operating at least 12 months as of September 2021.
The Wolf’s Take 🍟
As a follow up to the Roark Capital deep dive I sent on Monday, and the deep dive on Youth Athletes United yesterday…i9 Sports fits at the intersection of both of those:
They were acquired by Roark Capital recently (okay seriously, does Roark own everything?), as part of their effort to build a youth sports platform called Youth Enrichment Brands.
Youth Athletes United definitely has a big lead at the moment, but as you can see from the numbers of i9 Sports, this is a brand with compelling financials like other youth sports brands!
Resources
2) Crushr
Fast Facts
Background
- Founded in 2016, franchising since 2017
- Based in Prospect, KY; 39 locations open at the start of 2022
- Compactor roll off waste management service that offers mobile dumpster compactor services to reduce dumpster rental or roll-off dumpster hauls.
Fees + Investment
- Royalty: 8%
- Brand Fund: 1%
- Franchise Fee: $49,500
- Initial Investment: $128,250 – $382,900
Financial Performance
- Presented in the table below is a summary of income and certain expenses showing the Company-Owned Outlets’ historical results from January 1, 2021 to December 31, 2021.
The Wolf’s Take 🍟
Dumpster crushing is a relatively new concept so it’s interesting to see the trends of these franchises year over year. In last year’s coverage of Crushr, their corporate location showed revenue of $319,597 and net income of $162,301.
A 23% decline in revenue is certainly a bit concerning, but it is impressive that the net income only dipped to $112k, which is still a nice annual return given the high end of the investment comes in at $382k.
Resources
FROM THE POD
Brent Dowling – Voodoo Brewery
Brent Dowling co-founded Raintree, a Franchise Sales Organization – but now he’s put his money where is mouth in as his company has acquired a brewery franchise and expanding it nationwide.
This was an awesome conversation as we discussed the ins and outs of franchise sales, why some brands don’t show financials in their FDD, and why Voodoo Brewery is one of the most unique franchises out there today!
Check out our conversation here!
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