🍟 1/12/2023 – The Franchise Monetizing Tesla Owners
FRANCHISES OF THE WEEK
1) Alset Auto
- Founded in 2019, franchising since 2020
- Based in Portland; 3 locations open at the start of 2022
- Exterior auto services exclusively for tesla owners
Fees + Investment
- Royalty: 8%
- Brand Fund: 1.5%
- Franchise Fee: $40,000
- Initial Investment: $92,244 – $169,494
- The below table disclose historical information on the company’s 1 affiliate location during its fiscal year from October 2020 through September 2021
The Wolf’s Take 🍟
Close to $1M in revenue off of a $170K investment shows plenty of potential. But what’s more interesting to me is their value prop of working exclusively with Tesla owners.
The concept was founded by two Tesla owners who had no experience within the auto industry. But they realized there wasn’t a suitable company out offering protection for their beloved investment.
Alset auto provides peace of mind for Tesla owners by offering a suite of paint protection and ancillary services that enhance + preserve the appearance. Teslas market share is likely only going to increase in the coming years, and they’ve shown a longer average length of ownership and miles driven than other cars, thus leading to more paint chips and blemishes.
This is an interesting franchise that could be set up to be the auto detailer for a higher income class of EV car owners.
2) Clean Eatz
- Founded in 2012, franchising since 2015
- Based in North Carolina; 69 locations open at the start of 2022
- A unique QSR that focuses on healthy foods & offers additional revenue streams via meal plans, grab N’ go, and marketplace products
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $49,500
- Initial Investment: $256,000 – $662,000
- The below table discloses historical information of 44 franchised outlets in 2021
The Wolf’s Take 🍟
Clean Eatz has now shown $200k+ in EBITDA for the second year in a row. It’s a brand that offers healthy meals for customers, and multiple revenue streams for franchisees.
It’s not your standard dine-in/take out restaurant, as Clean Eatz also offers meal plan selections and pre-packaged food options via the “Grab N Go” program.
To me this is a differentiator, and gives franchisees the ability to appeal to a wider customer base than the standard fast-casual restaurant!
FROM THE POD
Shalin Patel – Vibe Restaurants
The Secret to Owning 100+ Little Caesar’s & Wingstops
Shalin acquired his first Little Caesar’s and lived in a motel for a year as he learned the ropes running that business.
Today, his multi-brand portfolio includes over 100+ locations in total.
Check out our conversation to learn how he did it!
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