🍟 6/8/2023 – Two Franchises Averaging Over $3M in Revenue
FRANCHISES OF THE WEEK
1) Closet Factory
- HQ: Los Angeles, CA
- Founded in 1983, franchising since 1985
- Closet factory provides custom closets and personalized built-in organization systems for the whole house.
- Royalty: 6.75%
- Brand Fund: 15%
- Franchise Fee: $58,500
- The below table discloses information on total gross sales at 40 franchised Closet Factory businesses open more than one year on December 31, 2021.
The Wolf’s Take 🍟
I had to do a double take on the average revenue being shown by Closet Factory. Home organization is how the brand classifies themselves, which given the pictures on their website makes sense – some of the creations are pretty stunning.
I’d imagine they naturally cater toward a much higher income consumer who has discretionary income, as creating a beautifully designed closet certainly isn’t a need for someone.
Home remodeling is a $12 billion dollar/year industry, and Closet Factory is getting their piece of the pie.
Check them out below!
2) Sweet Chick
- HQ: New York, NY
- Founded in 2013, franchising since 2023
- New York-based restaurant group specializing in chicken and waffles
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $40,000
- The below table presents information about certain results achieved by the 5 company-owned locations in operation for the entire 2022 fiscal year.
The Wolf’s Take 🍟
Sweet Chick is a hefty investment, but for the restaurant operators subscribed to this newsletter I wanted to share it.
This franchise just got added to Krokit, and while it’s a small sample size, their average revenue over $3.2M for any restaurant is an impressive feat.
For what it’s worth…their food also looks incredible 🤤
If you’re interested in this franchise, check out their website below!
FROM THE POD
Alex Yeater – Everbowl
This was a fun conversation with Alex Yeater, who shared with us what it’s like being an area developer.
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