🍟 9/15/2022 – Fat Shack Offering Fat Returns
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FRANCHISES OF THE WEEK
1) Fat Shack
- Founded in 2010, franchising since 2015
- Based in Colorado; 27+ locations open at the start of 2022
- Fat sandwiches to satisfy late night cravings
Fees + Investment
- Royalty: 6%
- Brand Fund: 0%
- Franchise Fee: $25,000
- Initial Investment: $150,250 – $419,750
The Wolf’s Take 🍟
Does their food look amazing? Yes.
Is over $1M in revenue off a $419k investment impressive? Yes.
Did I write this because I had the munchies last night? NOT gonna answer that!
On a serious note…outside of the economics, I really like this concept because it capitalizes on consumers at a time when price isn’t important.
As Mr. Wonderful from Shark Tank says, there are two times when a consumer doesn’t care how much money they spend:
“When they’re drunk, or when they’re in love”
-Kevin O’Leary AKA Mr. Wonderful
If you can look at those sandwiches and not feel a craving in your stomach, then you have more willpower than I do!
The story of this franchise is great as well – a New Jersey college student felt there weren’t any quality food options for his fellow students who were “studying” late at night. Rather than settle for an uninspiring vending machine, he created the solution!
Check out Fat Shack if you’re
hungry in the market for a restaurant!
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2) Medi Weightloss
- Founded in 2005, franchising since 2008
- Based in Tampa Bay; 90+ locations open at the start of 2022
- A weight loss franchise offering services via vitamin and nutrient injections
Fees + Investment
- Royalty: $2,250 – $11,000/month
- Brand Fund: $250 – $1,500/month
- Franchise Fee: $75,000
- Initial Investment: $220,252 – $422,752
- The below table displays the average and median revenue of certain franchisees from 2019 – 2021
The Wolf’s Take 🍟
First things first – I am NOT a medical professional. Personally, when it comes to health, I’m a fan of eating fruits & vegetables, regularly exercising, and getting a good sleep. When I can do all that consistently, I feel and look great.
All that to say, I am unqualified to speak about nutrient injections and any potential downsides to it – but for what it’s worth, everything Medi Weightloss does is FDA approved, and has clearly been working for their clients.
The numbers look great, and I’d guess the margins are higher than a typical franchise (non-surgical medical franchises tend to be closer to or above 20%).
Given the investment level, it’s a great return on investment, and it’s in the name of combating the obesity epidemic in the United States. Whether you are a physician who wants to diversify your practice or someone looking to start your new non-surgical medical weight management franchise, Medi Weightloss could be an option for you!
FROM THE POD
Ben Little – 14 Zaxby’s
Chick-Fil-A and Popeye’s may get the headlines, but Zaxby’s is an impressive franchise.
Ben Little 14 units of this brand that has 911 locations total nationwide, and averages $2.5M in revenue.
Of all 900+ locations, Ben owns the #1 store in the country! His 3 biggest pieces of advice:
- Give your restaurant managers equity
- Have double the capitalization required
- Don’t go cheap when deciding on a location
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