🍟 1/17/2022 – Gold In The Garage
Planet Fitness Buys Out Franchisee for $800M
Shane McGuinness was the very first Planet Fitness franchisee – he opened his first location in Altamonte Springs, Florida back in 2003.
Fast forward 19 years and he grew to 114 gyms across Florida, Alabama, Georgia, South Carolina and North Carolina.
Last week it was announced that Planet Fitness Corporate was acquiring all of his locations for a whopping $800 million .
The Wolf’s Take
I never tire of franchisees getting a payday. If you read last week’s Thursday 3, you may remember the quote “a life without commitment is a life where you can’t take advantage of compounding curves”.
Multi-unit owners embody the commitment necessary for such large scale exits. Shane worked 19 years straight building just Planet Fitness locations, and was able to create generational wealth in that time!
Noodles & Co Sells 15 Locations to Warner Foods
The California franchisee committed to open 40 restaurants in the coming years
D1 Training Receives PE Investment
Princeton Equity Group invested an undisclosed amount to fund national expansion
Franchise of the Week
- Founded: 1969
- Units Open: 5,881
- Investment Range: $568k- $3.7M
- Average Revenue per Location: $1,750,838
Did you know?
Wendy’s founder, Dave Thomas, worked for Colonel Sanders of KFC. Thomas’ business savvy helped transform KFC locations that were struggling—and the money he got from selling his stake in KFC went toward his founding of Wendy’s!
- Founded in 2019; franchising since 2020
- Based out of Nebraska, 59 locations
- A service franchise that specializes in garage renovations
Fees + Investment
- Royalty: 6% of gross sales
- Brand Fund: 2% of gross sales
- Franchise Fee: $49,500
- Initial Investment: $118,482 – $159,852
- The below table represents information an affiliate owned outlet in 2020:
The Wolf’s Take 🍟
I’ve recently spoken to a couple independent owners of garage renovation businesses – both were doing well and have found success utilizing sub-contractors.
Naturally, I wanted to see if there was a franchise in the sector – and low and behold I found Hello Garage.
Despite only franchising since 2020, it already has 59 locations operating. If franchisees are performing similar to what the affiliate location above is displaying, I would expect this brand to continue to grow at breakneck speed!
Resources & Press
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