🍟 1/26/2023 – Emerging Beauty Brand Showing 25% Margins!

FRANCHISES OF THE WEEK

1) Face Foundrie

Fast Facts

Background

  • Founded in 2019, franchising since 2020
  • Based in Minnesota; 10 locations open at the start of 2022
  • Beauty franchise that does facials, lash and brow services, skin care

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 2%
  • Franchise Fee: $44,000
  • Initial Investment: $196,860 $368,900

Financial Performance

  • The below table disclose information on 3 affiliate locations in 2021

The Wolf’s Take 🍟

Face Foundrie only has 3 locations, put in pure net profit dollars relative to the investment, this is one of the highest potential emerging franchises I’ve seen. 

I am less familiar with the operations of beauty franchises relative to other industries, so I’d be curious to learn more about what this franchise does to achieve those high revenue milestones, and high profit margin. 

Is it their brand? Is it a proprietary product? A unique / technology driven operating system?

Whatever the answer is, if new franchisees can replicate the corporate locations in Minnesota…this franchise will be a winner!

Resources

2) Southern Solar

Fast Facts

Background

  • Founded in 2018, franchising since 2022
  • Based in Texas; 1 location open at the start of 2022
  • High quality solar panels and related solar products for residential customers 

Fees + Investment

  • Royalty: 4% – 5.5%
  • Brand Fund: 0.5%
  • Franchise Fee: $65,000 – $95,000
  • Initial Investment: $169,900 – $239,600

Financial Performance

  • The below table presents historical information regarding the operating results of the affiliate, which is the equivalent to the size of 9 franchised territories 
  • The second table shows the affiliates based as if it was 1 territory 

The Wolf’s Take 🍟

Before getting too carried away, note that table A shows the equivalent of 9 franchise territories that the franchisor owns.

Said differently, this means  it would cost more than the “initial investment” section outlines as that is based off 1 territory. This is also why Table 5 shows their earnings from 1 out of the 9 territories, which is based off the amount of population each business unit operates in.

Regardless – solar technology is a growing industry and one that can become more and more common as the world looks to operate on cleaner energy sources.

I am very interested in learning more about this space in general, so if anyone reading this has familiarity (or ends up talking with the franchise), don’t’ hesitate to reach out!

Resources

FROM THE POD

Adam August – Blueprint Cookies

A Scalable Cookie Franchise

  • Minimal footprint
  • Low labor (2-4 employees per location)
  • A fantastic structure for employees to work in

Adam is building the blueprint for how to operate a QSR where everybody wins – listen to our conversation here.

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