🍟 8/25/2022 – Two Brands With Six-Figure EBITDA

FRANCHISES OF THE WEEK

1) Fundraising University

Fast Facts

Background

  • Founded in 2009, franchising since 2020
  • Based in Missouri; 40+ locations open at the start of 2022
  • Helps raise money for school sports teams via an efficient playbook

Fees + Investment

  • Royalty: $2,000+/month
  • Brand Fund: $630+/month
  • Franchise Fee: $59,500
  • Initial Investment: $77,800 – $85,100

Financial Performance

  • The below tables represent average revenue and average EBITDA data from 16 outlets in 2021
  • 12 of the outlets are franchised, while 4 are affiliate outlets – all have been open for a full year as of December 31st, 2021

The Wolf’s Take 🍟

I covered Fundraising University in one of the first editions of this newsletter in early August last year.

Last year’s financials featured data on 7 affiliate outlets – with an average revenue of $1,213,372 and EBITDA of $286,699.

When a franchise increases the sample size, it typically leads to a decrease in average revenue & EBITDA. The numbers from Fundraising University’s most recent FDD are no different – with data coming from 16 total outlets, the new average revenue and EBITDA have decreased.

But…they’re still showing fantastic potential. With an average EBITDA of $144K, and a median of $165K, that’s almost double the high end of the investment range!

I’d guess some of those owners own multiple territories, but regardless it’s a great return. 

For anyone interested in franchises that don’t require real estate, check them out!

Resources

2) Angry Crab Shack

Fast Facts

Background

  • Founded in 2013, franchising since 2016
  • Based in Arizona; 15+ locations open at the start of 2022
  • Seafood restaurant specializing in boiled crabs and other dishes

Fees + Investment

  • Royalty: 5%
  • Brand Fund: 1%
  • Franchise Fee: $50,000
  • Initial Investment: $411,800 – $1,184,200

Financial Performance

  • The below table represents performance data from 5 affiliate restaurants and 8 franchised restaurants 

The Wolf’s Take 🍟

It’s always interesting to see the way franchises present data – you’d think they would just provide the averages instead of making us calculate it ourselves….but I digress.

Using the information from the column furthest on the right, the average revenue per location comes to $4,131,059.85. And factoring in an average EBITDA of 10.5%, means that each location earned $433,761.28 in EBITDA!

These are very impressive numbers for any restaurant. And while it certainly requires a high unit volume to drive that profitability, they seem to have a playbook for seafood – an uncommon area in franchising – figured out.

For restauranteurs out there, this is a brand worth diving into!

Resources

FROM THE POD

Jared Taylor – Amazing Athletes

Jared Taylor bought his first Amazing Athletes franchise in 2014, and now has 6 territories and counting. 

In our conversation, he talks about following his passion, why he prioritizes his employees well being above all else, and the impact he wants to make on his community.

Listen to the conversation here!

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