🍟 11/29/2021 – Toppers Pizza + ANOTHER Acquisition
Franchise Group Acquires W.S. Badcock
Franchise Group, the owner of brands like Pet Supplies Plus, The Vitamin Shoppe, and more – just acquired home furnishing company W.S. Badcock for $580M
Founded in 1904, W.S. Badcock Corporation operates 383 stores in eight southeastern states comprised of 68 corporate locations and 315 independent dealer owned stores.
Another big money acquisition in the franchise world! To me (part of) the beauty of franchising is how much it increases an entrepreneur’s surface area for luck.
If you start a business, franchise it, and grow your brand via your franchisees locations – quite simply people just start noticing. That could lead to more interest from franchisees, from PE Groups looking to make investments, or in this case, massive holding companies looking to acquire brands outright.
You can read the press release here.
Jack in the Box Invests in Robotics to Curb Labor Issues
Robotics to replace labor will be a trend that will continue with the big players
Papa Johns to Grow in Kenya & Uganda
The pizza giant only has so many markets that they haven’t entered yet
- Founded in 1991; franchising since 2000
- Based in Wisconsin; 67 units open
- Toppers’ menu features specialty pizzas with toppings such as oven-roasted tomatoes, mac ‘n cheese and tater tots, along with the company’s signature cheesy breadsticks called Topperstix
Fees + Investment
- Royalty: 5.5% of gross sales
- Brand Fund: 3.3% of gross sales
- Franchise Fee: $30,000
- Initial Investment: $314,075 – $530,000
- The below table illustrates average gross sales for Toppers units in 2020
The Wolf’s Take 🍟
Toppers was founded by Scott Gittrich, an ex-Dominos employee, who started working there while attending the University of Illinois in 1984. He worked his way up to director of operations for a group of Domino’s franchises before deciding in 1991 to go on his own in the pizza biz by founding Toppers.
Aside from the cool story of the founder, I like the numbers too. They show consistency amongst their 67 locations, as well as a steady increase the longer your store remains open.
Dominos is the clear benchmark every pizza franchise should be comparing themselves to – they have an initial investment of $152k-$668k, and an estimated avg annual revenue of $1,177,696 per location.
Comparing them to Toppers, we see that the Toppers investment has a lower ceiling, and after a few years you aren’t too far off from Dominos revenue. To me this is absolutely worth exploring if you’re interested in owning a pizza restaurant!
- Toppers Pizza Grabs Minority Investment From PE Firm
- Toppers Closes Out Q3 With 20% Growth In Year-Over-Year Sales
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.