🍟 7/21/2022 – From Wall Street To Wingstop

FRANCHISES OF THE WEEK

1) Deer Solution

Fast Facts 

Background

  • Founded in 1981, franchising since 2022
  • Based in New Jersey; 4+ locations open
  • Deer repellant services

Fees + Investment

  • Royalty: 10%
  • Brand Fund: 2%
  • Franchise Fee: $40,000
  • Initial Investment: $97,282 – $133,377

Financial Performance

  • The below tables show performance from the company owned location that operates in what equates to NINE territories, with each territory having roughly ~40,000 households 

The Wolf’s Take 🍟

I grew up about 15 minutes away from where this franchise was founded in New Jersey. Let me tell ya – deers ran rampant where I come from!

They can cause problems from eating everything on your property, to getting stuck in soccer nets (never a fun situation trying to get them out)!

Deer Solution provides services to help keep deer away in a pet-friendly and environmentally-friendly way, and their corporate location shows just how big this business can be.

If you’re interested in a recurring revenue home services model, check them out!

Resources

2) StretchLab

Fast Facts 

Background

  • Founded in 2015, franchising since 2017
  • Based in California;  122+ locations open
  • Assisted stretching facilities in a group setting

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 2%
  • Franchise Fee: $60,000
  • Initial Investment: $160,300 – $299,260

Financial Performance

  • The below table shows the performance from franchised studios that were owned and operated for at least 12 months beyond their soft opening date as of the end of that calendar month

The Wolf’s Take 🍟

StretchLab is part of the Xponential Fitness family of brands. 

At first when I discovered this brand a year or so ago, I didn’t think it had much legs, but with 122+ locations open, there seems to be demand.

It’s no secret that stretching and remaining flexible is very beneficial to injury prevention (especially as you age). If you’re not going to yoga classes or stretching regularly on your own, I’m not sure there’s another option outside of a place like StretchLab (or a competitor named Stretch Zone).

With that said the average franchisee did north of $500,000 in revenue in 2021. While that may not sound like a lot, I’ve learned that boutique fitness margins can be stronger than many other industries – and wouldn’t be surprised if franchisees were taking home 20%+ EBITDA margins.

Of course, you’d have to confirm that with existing owners, and the best way to do that would be to reach out to StretchLab and start that process!

Resources

FROM THE POD

From Wall Street to Wingstop

Michael Horowitz left his career in banking in pursuit of small business ownership. During his search, he looked at just about every big food franchise:

He eventually moved forward with Wingstop in 2018, and today he owns 20 locations!

How’d He Grow So Quick?

By acquiring the large majority of his locations, and using the closed network of Wingstop franchisees to roll up locations much faster than you could do with independent SMB’s.

If you want to hear from Michael directly, click here to listen!

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