🍟 5/5/2022 – The Biggest OrangeTheory Owner In The World
MEET A ZEE
Jamie Weeks: OrangeTheory
I’ll cut straight to it: Jamie Weeks is a legend.
Since he bought his first OrangeTheory in 2014, his holding company, dubbed Honors Holdings, is the largest OrangeTheory franchisee with 140+ locations.
He’s also founded Legacy Franchise Concepts, which became a franchisee of dog daycare brand Dogtopia, of which Jamie is building 60+ locations of.
If that wasn’t impressive enough, he’s also founding his own franchise called SweatHouz, a wellness franchise that has private infrared sauna suites, vitamin-C infused showers, cold plunge tubs, etc. That concept will begin franchising this summer.
I could write far more than 3 things that I learned from my conversation with him, but here are some of the highlights:
1. Interview Questions
When Jamie interviews employees, he asks them 3 questions (as he did to me on the podcast) –
1) What was your first car?
2) What was the first concert you went to?
3) If you could watch 1 movie for the rest of your life, what would it be?
His intentions are to have a conversation, and get to know the person behind the professional. For him, it’s less about their current skillset and more about their character and how they’ll fit into his organization culturally.
2. Private Equity’s Value
Jamie definitely could not have done this alone. While he grew to 12 OrangeTheory locations largely on his own, scaling to 100 locations and beyond was a journey he took with private equity firm Prospect Hill Partners.
Not only have they provided capital, but they’ve also given Jamie the insight and guidance needed to scale his organization to become one of the largest privately owned fitness companies in the US.
3. Risk Taking
When March 2020 hit, Jamie had about ~70 OrangeTheory locations under his belt.
A year later, a partner at Prospect Hill thought it could be a great time to buy locations on the cheap, and wanted Jamie to be the operator to do it. This was still an uncertain time, and a time when many franchise owners were still struggling.
Via their capital partners, Jamie ended up taking on $100 million, and within 60 days he had invested $60M of it into acquisitions .
To learn more about Jamie and the massive bet he made, click here!
FRANCHISE OF THE DAY
- Founded in 2012, franchising since 2017
- Based in Virginia; 144+ territories operating
- Irrigation repair, maintenance, installation, & efficiency upgrades
Fees + Investment
- Royalty: 5-8%
- Brand Fund: 1.5%
- Franchise Fee: $49,500
- Initial Investment: $84,800 – $110,000
- The below information is based on 31 franchisees that operated 88 territories in 2021
The Wolf’s Take
Not gonna lie folks, I don’t know much about irrigation businesses, but I do know good numbers in a Franchise Disclosure Document when I see them.
Conserva Irrigation boasts at most a $110K investment, and the average single territory owner is averaging 3x that amount in gross revenue. When you consider the system as a whole and factor in multi-territory owners, that average is closer to 4x the investment.
Like many home services brands, you should be able to expect 20% margins, and potentially even higher. Not only are franchise owners of Conserva Irrigation providing a high margin service, they’re also an eco-friendly one as well.
Their conservation technology and advancements help reduce water use from irrigation by up to 60% for every property, while still promoting lush, healthy lawns and landscapes.
If you’re interested in a low-cost service franchise, this looks like a great brand to look into!
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