🍟 9/14/2023 – Gaming Franchise Growth
FRANCHISES OF THE WEEK
1) Game Kastle
Fast Facts
Background
- HQ: Santa Clara, CA
- Founded in 2003, franchising since 2017
- Game Kastle is a popular franchise known for its extensive selection of tabletop games, collectibles, and hobby supplies.
Location Trends
Franchise Fees
- Royalty: 5%
- Brand Fund: 1%
- Franchise Fee: $45,000
Financial Overview
- The below table discloses information on the Game Kastle California location open for the twelve month period ending December 31, 2021
The Wolf’s Take 🍟
Alright I won’t lie, I have *no idea* about the longevity of this concept, but I did think it was pretty cool that they’ve been able to build a business that generates close to $700,000 in revenue off of selling games to customers.
It’s also worth noting I am not the core target customer for this business as I haven’t played any of the games I see advertised on their website….but I figured I’d include this brand as a flyer in case anyone in The Wolf Pack is a game enthusiast who may be interested in this as a passion project.
Resources
2) Gotcha Covered
Fast Facts
Background
- HQ: Denver, CO
- Founded in 1991, franchising since 2001
- Gotcha Covered is a company that specializes in custom window treatments, including blinds, draperies, shutters, and more.
Location Trends
Franchise Fees
- Royalty: $350 – $2,000/m
- Brand Fund: $350
- Franchise Fee: $64,900
Financial Overview
- The below table discloses information on 20 franchisees in the second highest quartile that have been in operation for at least one year as of December 31, 2021.
The Wolf’s Take 🍟
Gotcha Covered is well past the 100+ territory mark, and looks like they have a decent return on investment, assuming they have the average margins of a home services business.
Note that they also charge their royalty and brand fund as a dollar amount, not a percentage of revenue. It’s a subtle detail, but many franchisees prefer this method, as the percentage based royalty effectively means your most successful franchisees pay the most royalties, and they end up subsidizing the underperformers.
If you’re interested in a lower cost service franchise, add this to your research list!
Resources
- Gotcha Covered Franchise Website
- Gotcha Covered increases presence in South Florida with new center in Port Saint Lucie
FROM THE POD
Ron Holt – Pink Zebra Moving
This was a super fun conversation with an entrepreneur who’s now a 2x franchisor founder.
Ron Holt had a successful exit with his first brand, and is now off to a great start with his second brand, Pink Zebra Moving.
We talk all about how to grow franchises, building a brand, and why he’s trying to build the first fun moving company nationwide.
Check out our conversation here!
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