🍟 3/21/2022 – The Franchisee Who Owns 100+ OrangeTheory’s
Largest OTF Owner Launches Franchise
Jamie Weeks is the CEO of Honors Holdings, his company that he started in 2014. Today, they own over 130+ OrangeTheory studios and employ over 1,000 people.
In 2017 he took on an investment from Prospect Hill Growth Partners, who are now a major equity partner in Honors Holdings.
Now, Jamie is founding Legacy Franchise Partners, through which he became a franchisee of dog daycare brand Dogtopia, and is incubating his own franchise called SweatHouz.
The Wolf’s Take
There’s no other way to say it folks, this guy is a LEGEND. Going from 0-100+ studios in just 7-8 years is ridiculous growth.
Not to mention that he’s now opening 60+ Dogtopia’s, and will be building his own brand SweatHouz, which is an infrared sauna concept.
I sometimes get pushback about how multi-unit ownership isn’t feasible because it’s not easily scalable, it requires far too much employee over head, etc. etc.
But the reality is that most folks are either:
A) Looking at the wrong brands, or
B) Not thinking big enough
Jamie is what happens when you match an exceptional operator with an exceptional franchise brand. Needless to say, I’ll be waiting to get my hands on the numbers for his own concept SweatHouz!
- Founded: 1972
- Units Open: 3,377
- Investment Range: $384k – $2.6M
- Average Revenue per Location: $1.9M
Did You Know?
Popeyes founder Al Copeland originally sold donuts, and was a franchisee of a brand called Tastee Donut at the age of 18!
Is there a brand you’re curious to know the financials of? Reply to this email and let me know!
FRANCHISE OF THE DAY
- Founded in 2012, franchising since 2019
- Based in Nevada; 5 franchise locations
- Helps clients hire caregivers for elderly family members
Fees + Investment
- Royalty: 6% of gross sales
- Brand Fund: 1% of gross sales
- Franchise Fee: $50,000
- Initial investment: $60,000 – $77,000
- The below information contains performance data from the corporate owned business’s first 3 years of operations
The Wolf’s Take
Financially, the 3 year performance looks great, especially given the investment tops out at $77,000.
In addition the numbers, it’s a business that you can run from a home office and requires no employees to be hired. As I discussed a few weeks back with Mobility 101, there’s also tailwinds for any businesses targeted at seniors:
- By 2030, all baby-boomers will be age 65 or older
- There are 73M baby-boomers nationwide, aged between 57-75 years old
- Until 2030, 10,000 baby boomers will hit retirement age every single day
While I’m no expert on the ins and outs of senior care, Hallmark claims to be able to find caregivers for families at a much lower cost than traditional players in the industry.
The standard model seems to be an agency model i.e. caregivers sign with agencies, who then handle all the work of placing them, but in exchange for being the middle-man they have to boost prices to ensure they are profitable.
Meanwhile, Hallmark franchisees are able to go directly to caregivers and match them with a family. The main value add from the franchisee is they’re able to throughly vet caregivers so that families can rest easy knowing they’ve chosen a trustworthy caregiver.
What wasn’t clear to me was how they’re able to access these networks of caregivers that aren’t tied up in the agency model.
Nonetheless, if you’re interested in this industry and a low cost + low overhead model, it’s worth looking into!
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