🍟 3/16/2023 – Home Services Franchises With High Cash Flow Potential
FRANCHISES OF THE WEEK
1) Blue Kangaroo Packoutz
- Founded in 2019, franchising since 2019
- Based in Ann Arbor, MI; 17 locations open at the start of 2022
- Franchise that specializes in providing restoration and pack out services for homes and businesses that have been affected by disasters such as floods, fires, or storms.
Fees + Investment
- Royalty: 7%
- Brand Fund: 2%
- Franchise Fee: $44,925 – $59,900
- Initial Investment: $177,876 – $381,396
- The table below represents the Gross Sales Per Location, System Wide Sales (Total), and System Wide Sales (Average).
The Wolf’s Take 🍟
I’ve covered only a few restoration businesses before, but they always seem to perform well. Blue Kangaroo Packouz is no different, boasting an average gross sales that’s ~2.75x higher than the high end of the investment.
While I’m sure these businesses aren’t all sunshine and rainbows (no business is), an aspect I love about it is that insurance providers are paying the restoration companies the majority of the time. This means that for you as an owner, you’re not having to haggle with home owners on price.
This is especially convenient given your customers likely just had their homes destroyed to a degree, whether it was a flood, fire, or worse – and having to hit them while they’re down with an expensive bill wouldn’t be fun to say the least. Thankfully, your compensation is pre-negotiated with the insurance company.
If you’re interested in this business, check out their website below!
- Blue Kangaroo Packoutz Franchise Website
- Ann Arbor’s Blue Kangaroo Packoutz Triples in Size During 2022
2) Mosquito Squad
- Founded in 2004, franchising since 2005
- Based in Columbia, MD; 235 locations open at the start of 2022
- Franchise that offers residential and commercial mosquito and tick control services to help protect people and pets from vector-borne diseases.
Fees + Investment
- Royalty: 8-10%
- Brand Fund: $150-$450/mo.
- Franchise Fee: $45,000
- Initial Investment: $153,410 – $201,035
- As of December 31, 2021, there were 222 Territories open and operating. The table below includes 212 territories that were open and operating for the entire 2021 fiscal year.
The Wolf’s Take 🍟
Mosquito Squad is a low investment franchise that shows it has the potential for high upside. If it’s your first time hearing of a business like this, outdoor pest control is actually a big area of focus for homeowners.
Depending on your market, this may be an all-year round business, but I have met owners who operate 1 franchise brand for the duration of the year, and then during the summer they activate their mosquito franchise for additional revenue.
This could make for a solid cash-flow business, regardless of whether you wanted to operate it full time or part time.
FROM THE POD
Maya Ratcliff – Hawaii Fluid Art
Maya Ratcliff has taught art classes for the likes of Matthew Mcconaughey, and has art pieces made during her classes hanging in private jets and mansions.
Her franchise is one of the fastest growing brands in America, with hundreds of units being built and some great unit economics thus far to back it up.
Check out our conversation here!
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