🍟 8/4/2022 – Money Under The Mattress (Franchise)
FRANCHISES OF THE WEEK
1) Verlo
Fast Facts
Background
- Founded in 1989, franchising since 2011
- Based in Wisconsin; 32+ locations open
- A mattress store with a model that cuts out the middleman
Fees + Investment
- Royalty: 5%
- Brand Fund: 1%
- Franchise Fee: $50,000
- Initial Investment: $360,438 – $424,655
Financial Performance
- The below table contains historical financial data of 10 single store franchise operators
The Wolf’s Take 🍟
I wasn’t expecting to ever see a mattress franchise out there, but here we are!
And judging from the numbers…this looks like a great business! $223K in EBITDA from a ~$425K investment is extremely high across any brick & mortar franchise.
Verlo’s model (according to their website) combines building personalized mattresses locally and selling them directly to the customer – cutting out any middleman markup.
My biggest question is how much would the on-going capex expenses be to run a store (can’t imagine keeping stock of dozens of mattresses is cheap).
But regardless, this is a unique franchise opportunity that shows great unit economics!
Resources
2) Mici Handcrafted Italian
Fast Facts
Background
- Founded in 2004, franchising since 2020
- Based in Colorado; 7+ locations open at the start of 2022
- A fast casual and delivery Italian restaurant
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $45,000
- Initial Investment: $244,205 – $586,605
Financial Performance
- The below financial data is from 7 affiliate owned locations open for the full calendar year 2021
The Wolf’s Take 🍟
Mici is putting up some ridiculous numbers for a food franchise of this investment level. It’s an interesting concept that is attempting to combine quality Italian food (artisan pizza’s, pasta, etc.) in a QSR format.
Simply put, any restaurant that is showing the potential for $300K in EBITDA is worth looking into – Mici is doing that with an investment that’s below $600K.
Resources
- Mici Franchise Website
- Local Italian Chain Planning 30 Locations in Phoenix
- Why Mici Decided to Franchise at 6 Units
FROM THE POD
Mike Kelley – Sylvan Learning
My conversation with Mike was jam packed with discussion about:
- Owning and selling a service franchise
- Growing to 10 locations of Sylvan Learning
And also…why he decided NOT to move forward with Chick-Fil-A after an 18 month application process. Take a listen to the episode here!
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