🍟 2/9/2023 – Low Investment Wing Franchise On The Rise
FRANCHISES OF THE WEEK
1) Detroit Wing Company
Fast Facts
Background
- Founded in 2015, franchising since 2021
- Based in Detroit; 11 locations open at the start of 2022
- Wing restaurant known for their 19 signature sauces
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $30,000
- Initial Investment: $506,436 to $662,283
Financial Performance
- The below table disclose average revenue statistics from 6 locations (4 franchised, 2 company owned)
The Wolf’s Take 🍟
Last year’s numbers for Detroit Wing Co showed an average unit volume of ~$1.6 million based on 3 locations. The fact that the average revenue per location increased with a larger sample size this year shows potential for this emerging franchise.
It’s early days, but $1.7 million in annual revenue is more than your average Burger King or Taco Bell. Not to mention, it’s a low investment build relative to other QSR franchises at just $507K – $663K.
If you’re in the market for a QSR franchise, Detroit Wing Co is worthy of looking at!
Resources
2) College Hunks
Fast Facts
Background
- Founded in 2003, franchising since 2007
- Based in Florida; 155 locations open at the start of 2022
- Junk removal and moving services
Fees + Investment
- Royalty: 7%
- Brand Fund: 2%
- Franchise Fee: $45,000 – $65,000
- Initial Investment: $158,700 – $283,500
Financial Performance
- The below info is based on 104 franchised locations
The Wolf’s Take 🍟
These are some impressive average revenue and EBITDA statistics. My one call out is it’s a little unclear (even when reading the footnotes in the full documentation) if the EBITDA has factored in the royalty you’d have to pay as a franchisee.
Even so, based on the investment level, College Hunks is offering a great cash on cash return for the second year in a row.
Junk removal isn’t sexy, but it looks good for cash flow!
Resources
FROM THE POD
Body20 – Greg Breitbart
The founder of Body20, a new fitness franchise, was fascinating – as he explained how we went from selling an energy company for over $100 million, and found himself looking for another challenge.
Body20 has become that challenge. Listen to our full conversation here!
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