🍟 11/10/2022 – Two Low Cost Franchises With $1M+ in Revenue
FRANCHISES OF THE WEEK
1) Garage Kings
Fast Facts
Background
- Founded in 2013, franchising since 2020
- Based in Canada; 23+ locations open at the start of 2022
- Specializes in the professional installation of garage floor coating, concrete resurfacing, commercial epoxy coating and decorative epoxy flooring
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $60,000
- Initial Investment: $165,897 – $208,047
Financial Performance
- The below table discloses information from 5 locations for the full year ending December 31st, 2021
The Wolf’s Take 🍟
Like other home service businesses, Garage Kings is a lower investment franchise that shows a solid ROI.
These businesses can be harder to scale i.e. your annual EBITDA may have a lower ceiling than other franchises, but launching one is far less intensive than brick & mortar brands, which means you can generate cash flow quicker.
Additionally, there’s a ton of brands in other home services categories such as gutter cleaning, painting, and elsewhere. But garage floor coating?! This is definitely an underserved category.
Check out their website below if it seems like a good fit for you!
Resources
2) Ellie Mental Health
Fast Facts
Background
- Founded in 2015, franchising since 2021
- Based in Minnesota; 15+ locations open at the start of 2022
- Offers Outpatient mental health services
Fees + Investment
- Royalty: $1k/clinician/month
- Brand Fund: $50/employee/month
- Franchise Fee: $60,000
- Initial Investment: $201,013 – $404,957
Financial Performance
The Wolf’s Take 🍟
With an investment midpoint of ~$300K, and an average revenue of the 9 locations in 2021 at $1,436,167 – Ellie Mental Health has shown a ton of potential.
And I’m not the only one who has realized that, as this brand has sold 100+ units since the start of this year.
Whether or not the brand can handle scaling so quickly remains to be seen, but their mission is a noble one, as they’re attempting to destigmatize mental health at a national level. A quick blurb from their website reads:
The mental health industry is full of barriers, and we’ve made it our goal to fill the gap and find innovative ways to break down these barriers for the communities we serve. The main way we do this? With humor! We believe that struggling with mental health issues is 100% normal. Some days are great, and some days make you wish you could dig yourself in a hole and hide from at all. Everyone has those days (even your therapist).
If their mission aligns with you personally, this is a high-growth brand that could reap financial rewards as well!
Resources
FROM THE POD
Hank Horkoff – Steamoji
Hank Horkoff had built multiple ed-tech companies that got acquired (one by a massive tech company for an 8-figure exit).
While Hank could be retired, he’s decided to launch a franchise that can do a substantial job of prepping kids with the skills and mindset needed to succeed for the coming decades.
This is why he started Steamoji, an education franchise that allows kids to receive a STEM education that actually keeps up with the latest technology.
To learn about Steamoji and what Hank is building, check out our conversation here!
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