🍟 3/2/2023 – A Retail Clothing Franchise Showing Hefty Profit
FRANCHISES OF THE WEEK
1) Dog Haus
- Founded in 2010, franchising since 2013
- Based in Pasadena, CA; 55 locations open at the start of 2022
- Fast casual restaurant that serves hot dogs, beef burgers, handcrafted sausages, local craft beers, and fried chicken sandwiches.
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $40,000
- Initial Investment: $306,248 – $1,090,187
- The below table discloses information on gross sales at franchised Dog Haus fast casual restaurants open more than one year on December 31, 2021.
The Wolf’s Take 🍟
This is not necessarily a “first time franchisee” friendly brand, as it has a wider investment range than brands I typically cover.
But with an investment midpoint of ~$698K, Dog Haus is showing potential with an average unit volume close to $1.25M. For restaurant operators specifically, Dog Haus also offers a Biergarten model that drives average unit volumes up to $1,808,299.
There’s not many (if any?) Biergarten franchises, but Dog Haus is providing a fun dining experience at their locations, and looks to be building a differentiated restaurant brand.
Check out Dog Haus below – and if you’re a restaurant operator reading this, feel free to reply and let me know your thoughts on this brand!
2) Uptown Cheapskate
- Founded in 2008, franchising since 2008
- Based in North Salt Lake, UT; 102 locations open at the start of 2022
- Franchise of retail clothing stores that specializes in buying and selling gently-used clothing, shoes, and accessories.
Fees + Investment
- Royalty: 5%
- Brand Fund: 0.5%
- Franchise Fee: $25,000
- Initial Investment: $346,279 – $544,339
- The below table discloses detailed financial reports submitted from 84 franchisees whose stores operated in the United States during the period of November 1, 2020 through October 31, 2021.
The Wolf’s Take 🍟
Alright I’m not going to lie…I was pretty surprised to see these numbers. Retail franchises aren’t super common, but the ones that are out there aren’t showing numbers like this.
They present to customers as an upscale retail clothing company, despite being a resale store. In other words, they’re kind of competing with thrift shops *que Macklemore*, but their brand looks and feels entirely different.
Dude, who pays $50 for a t-shirt?
Customers at Uptown Cheapskate do!
Their focus on providing a ~chic and trendy~ (words I never thought I’d use) customer experience, as well as a focus on environmental sustainability has helped gain loyal customers wherever they open.
It turns out that resale clothing is a $31 billion industry, and they’re looking to capitalize on it by bringing a fresh angle to the business model.
Even if you aren’t interested in operating one of these, you gotta admit, this is a cool niche business that they clearly have found success in!
- Uptown Cheapskate Franchise Website
- Clothing resale store intended for millennials, Gen Z opening in Livonia
FROM THE POD
Al Bhakta – CMG Companies
In 2001, a group of college friends bought 1 restaurant. It was their favorite late night eats spot – Genghis Grill.
Today, that lone restaurant has grown into one of the biggest multi-unit franchise platforms in the world. CMG Companies now owns a variety of franchises, including:
• 100 Sonics
• 20 Little Caesars
• 200 KFCs + Taco Bells
And far more. Collectively, their platform does over half a billion dollars in revenue.
I spoke to their founding partner and Principal Al Bhakta
Check out our conversation here!
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