🍟 4/6/2023 – Electronics Shop Averaging $1.4M in Revenue
FRANCHISES OF THE WEEK
1) Fuzzy’s Taco Shop
Fast Facts
Background
- Founded in 2003, franchising since 2009
- Based in Irving, TX; 137 locations open at the start of 2022
- Modern counter-service chain serving Baja-style tacos & other Mexican eats, plus beer & margaritas.
Fees + Investment
- Royalty: 5%
- Brand Fund: 2%
- Franchise Fee: $30,000 – $40,000
- Initial Investment: $370,500 – $1,224,600
Financial Performance
- The data reported below reflects Gross Sales for Reporting Units for the 2022 Fiscal Year.
The Wolf’s Take 🍟
Fuzzy’s Taco Shop shows an impressive average unit volume of just over $1.8 million.
The Dallas based brand has a great vibe, pet friendly atmosphere, and a killer drink menu too. Their average unit volume last year was higher than 2019 pre-covid levels, when they reported ~$1.5 million in average revenue.
Given the growth in AUV, it’s no surprise that they were acquired by a big player – Dine Brands Global – the owner of IHOP and Applebee’s.
If you’re a restauranteur looking to expand with a fun casual dining concept, check out Fuzzy’s!
Resources
2) PayMore
Fast Facts
Background
- Founded in 2011, franchising since 2020
- Based in New York; 12 locations open (77 in development)
- Local and secure retail location where people go to buy, sell, trade or recycle their old electronic devices while remaining data safe.
Fees + Investment
- Royalty: 4%
- Brand Fund: 1%
- Franchise Fee: $30,000
- Initial Investment: $152,050 – $242,450
Financial Performance
- The below historical financial performance representations are for 3 corporate PayMore units and a franchise PayMore unit. Gross Sales are calculated as total sales minus sales tax and customer refunds.
The Wolf’s Take 🍟
While Paymore only had 4 locations open in 2021, an average unit volume of just under $1.4 million is pretty fantastic relative to the investment level.
Their model is effectively a pawn shop for consumer electronics, including cell phones, tablets, laptops, gaming systems, and more.
They also have a proprietary POS system that allows employees to accurately assess the real-time value of any products traded in by a consumer.
Today, Paymore has around 10 locations open, with about 40 more being built nationwide. Word on the street is a few franchisees have bought more units after getting their first location open – which is always a great sign.
Check out their website below for more information!
Resources
FROM THE POD
CJ Adams – THREE Franchise Brands
CJ Adams went from being a real estate agent in Florida, to owning 3 dual-branded franchise locations in just a single acquisition:
- Marble Slab Creamery
- Great American Cookies
He now also owns a dual-branded location of Great American Cookies and Pretzelmaker.
This was a super fun conversation on what it’s like to transition from one profession, to diving head first into franchise ownership!
Check out the conversation here!
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