🍟 5/9/2022 – Senior Care is Booming
Planet Fitness Consolidation
Excel Fitness Holdings LLC, based out of Austin Texas, was recently purchased by private equity firm Olympus Partners, for an undisclosed amount.
Excel Fitness operates more than 90 clubs in Austin, Dallas, Fort-Worth, northwest Arkansas, Raleigh-Durham, and Tulsa.
The Wolf’s Take
This was a deal that was done not just for the existing locations, but also the “white space” that Excel Fitness already owns.
For those not familiar, white space is a common term used for the territories and locations still left to be built out by a franchisee.
For Excel Fitness, their Planet Fitness locations are in prime high-growth markets across the US, and expect to operate more than 100 locations by the end of this year. But beyond that, they still have 80 clubs left to build, which makes it an enticing offer for a buyer like Olympus Partners.
This is of course in addition to the brand power of Planet Fitness, which as a whole has only increased as they’ve performed well since we’ve eased out of covid lockdowns.
Crunch Opens New Training Center
This is the gym franchises’ first ever national training center
How McDonald’s Expanded to Japan
I wrote this on twitter yesterday and wanted to share it!
- Founded: 1985
- Units Open: 5,650
- Investment Range: $198K – $744K
- Average Revenue per Location: ~$1,300,000
Did you know?
Pizza Hut sued Papa John’s in the 90’s for their slogan “Better ingredients. Better Pizza”, as it’s an implied dig at the brand that (used) to be the king of pizza chains.
Pizza Hut won the case, but Papa John’s appealed and subsequently won that case in 2000. The following year, the Supreme Court declined Pizza Hut’s request to have the case re-tried at the highest level.
FRANCHISE OF THE DAY
Boost Home Healthcare
- Founded 10+ years ago, franchising since 2021
- Based in Michigan; 3+ locations open
- A healthcare franchise that assists elderly with skilled in-home care
Fees + Investment
- Royalty: 3.5%-5%
- Brand Fund: 2%
- Franchise Fee: $70,000
- Initial Investment: $150,550 – $259,750
- The below table provides revenue from the corporate owned entity for the periods June 1st, 2019 – May 31st, 2020 and June 1st, 2020 – May 31st, 2021
The Wolf’s Take
I’ve covered a few different businesses that are targeted at the aging baby-boomer demographic. The quick highlights are as follows:
- 90% of seniors want to age in place
- 10,000 people are turning 65 each day
- 70 million Americans will be 65+ by 2030
- Senior care is a $300 billion / year industry
Boost is capitalizing on this by matching seniors with whatever skilled healthcare provider is needed. That could be a nurse, physical therapist, occupational therapist, speech pathologist, etc.
Aside from the industry boom, and the ridiculous revenue the corporate entity is showing, this brand is owned by Best of Life Brands.
The Private Equity Roll-Up
Best of Life Brands (backed by Riverside Capital) has been strategically acquiring businesses in the senior care space for some time now.
In addition to Boost, they also own an estate sales franchise called Blue Moon, a non-medical senior care franchise called ComForCare, and a few others. I love this strategy from Best of Life Brands because they’re building a portfolio of adjacent businesses that provide synergies with one another.
ComForCare is a great example – it’s a franchise with 200+ territories that helps seniors match with a personal in-home helper. So while the customer they serve is the same, the services are different + non-competitive.
And I’d bet that any inbound request for ComForCare that ends up requiring a skilled service provider (like the ones Boost specialize in), that lead is likely cross-sold within the system, thus benefitting Boost franchise owners.
It’s a similar model to what Driven Brands has done in the auto-industry.
Related: if you want to hear how horizontal integration benefits franchisees, you can listen to my podcast with the franchisee of 3 separate auto-brands under the Driven umbrella.
If you’re interested in senior care services, check out Boost Home Healthcare!
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