🍟 6/30/2022 – The Top OrangeTheory Owner Launched A Franchise

FRANCHISES OF THE WEEK

1) SweatHouz

Fast Facts 

Background

  • Founded in 2018, franchising since 2022
  • Based in Atlanta, Georgia; 8+ locations open as of 2022
  • A wellness concept offering infrared sauna’s, cold plunges, & vitamin c-showers within private suites

Fees + Investment

  • Royalty: 6% 
  • Brand Fund: 2%
  • Franchise Fee: $35,000
  • Initial Investment: $482,273 – $896,860

Financial Performance

  • The below tables represent the performance of 4 SweatHouz locations that were open as of December 31, 2020, and thus open for the full year 2021

The Wolf’s Take 🍟

It’s early days for this brand, but we can see from the 2021 financials that SweatHouz has the potential to return a healthy amount to the bottom line.

Keep in mind that even the numbers from 2021, are probably not maxing out their full potential in what was bounce-back year from a rough 2020 due to covid.

I talked on Monday about how this concept could fit in well with health-conscious customers, who could use SweatHouz on off-days, or to maximize post-workout recovery. 

Looking past the numbers and the concept, let’s talk about the founder:

Jamie Weeks

interviewed Jamie on Franchise Empires, and unsurprisingly it was the most listened to episode all season. Why?

The guy just has great energy, and it’s contagious. 

Something that specifically struck me was how in tune he is with his own employees at all his OrangeTheory‘s, and how he treats them.

A great indicator of employee happiness is retention – if people aren’t happy, they’ll leave. Yet Jamies managers have an average tenure of 5+ years – a great sign that he takes care of his people.

So when I look at SweatHouz, I look at a concept being run by someone who is going to take care of his people i.e. the franchisees. If you want to learn more about it, you can speak to their team via the franchise website link below!

Resources


2) Pool Scouts

Fast Facts 

Background

  • Founded in 2016, franchising since 2016
  • Based in Virginia; 65+ locations open
  • Pool cleaning and maintenance

Fees + Investment

  • Royalty: 8%
  • Brand Fund: 2%
  • Franchise Fee: $30,000
  • Initial Investment: $70,950 – $88,350

Financial Performance

  • The below table represents revenue for two territories in Virginia in the year 2016 and 2021, to illustrate growth from their 1st year of operation to the most recent year of operations

The Wolf’s Take 🍟

I like this business because of how low it is to start up, and the potential return with a territory or two.

Pool Scouts can be great businesses for an individual who wants to set their own terms, or it can act as a stepping stone to future businesses. We’ve seen the playbook of leveraging service businesses for cash-flow, and using that $ to fund bigger ventures.

The residential pool maintenance market, like most home-services segments, is incredibly fragmented, and Pool Scouts offers a professional option for customers.

This brand also has an advantage that a mom & pop wouldn’t have:

Buzz Franchise Brands

Buzz Franchise Brands is the parent company of Pool Scouts as well as Home Clean Heroes, and British Swim School.

Each business is going after residential customers, but are non-competitive with one another. I’d guess they provide some great cross-selling opportunities to franchisees – meaning less marketing dollars out of your pocket!

Overall, if you’re in the market for a low-cost home-services brand, this looks like a compelling option!

Resources


FROM THE POD

Brian Beers – 29 Midas Locations

Brian Beers owns 29 Midas franchises via acquisition. 

He’s gotten to this level by leveraging 2 things:

  • Seller financing
  • The closed-network of Midas franchisees to generate deal flow

He shares so many tactics that owners & operators everywhere can learn from.

Click Here To Listen

Disclaimer: This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All Content in this email is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the email constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content in this email before making any decisions based on such information or other Content.