🍟 5/4/2023 – Pet Franchise With 2.5x Return on Revenue

FRANCHISES OF THE WEEK

1) FirstLight Home Care

Fast Facts

Background

  • Founded in 2009, franchising since 2010
  • Based in Cincinnati, OH; 189 locations open at the start of 2022
  • A home care agency that specializes in personalized assistance and support to individuals in the comfort of their own homes

Fees + Investment

  • Royalty: 5%
  • Brand Fund: 1%
  • Franchise Fee: $49,900
  • Initial Investment: $113,300 – $198,300

Financial Performance

  • The table below describe the “Gross Revenue” reported to us by franchisees for the 12-month period ended December 31, 2022, which includes 160 franchisees 

The Wolf’s Take 🍟

Senior Care as a category continues to impress me, as brands such as FirstLight flex the possibilities of these businesses, namely lower investment levels and high revenue. 

The category isn’t going anywhere either, as baby boomers will need more options over the coming 10-20 years.

One thing to note is these are service businesses, so it is a bit tougher to scale, but should lead to a higher margins on a per territory basis.

Check out the website below if you’re interested in FirstLight!

Resources

2) Woof Gang Bakery & Grooming

Fast Facts

Background

  • Founded in 2007, franchising since 2008
  • Based in Orlando, FL; 155 locations open at the start of 2022
  • A pet business offering a unique combination of pet grooming services and a wide selection of treats and products for furry friends

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 2% 
  • Franchise Fee: $49,900
  • Initial Investment: $155,300 – $280,400

Financial Performance

  • Table 1 includes the total Gross Revenue for the time periods from April 1, 2022 to March 31, 2023. 

The Wolf’s Take 🍟

People are willing to spend a lot of money on their pets – and Woof Gang, a pet bakery and grooming center that averages over $700k in revenue, is proof of that!

The concept is differentiated in that Woof Gang offers standard grooming services (which makes up roughly ~66% of their revenue), but their retail business also offer high-end retail products such as: 

  • CBD treats
  • Gourmet treats
  • Healthy food options

If you’re looking for a pet business, this could be a fun one to look into!

Resources

FROM THE POD

Chris Kenny – Level 5 Capital

Level 5 Capital has over $300M in assets under management.

They also have one of the most interesting models in franchise private equity. Not only do they take equity in emerging franchisors, they also build out dozens of locations as “anchor franchisees”.

This helps build the brand, but also their experience in retail operations means they can fine tune a franchisors model, benefiting the entire system of franchisees.

Check out my conversation with the co-founder here!

Disclaimer: This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All Content in this email is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the email constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content in this email before making any decisions based on such information or other Content.