🍟 11/21/2022 – Two Low Cost Franchises With Cash Flow
FRANCHISES OF THE WEEK
1) Options for Senior America
Fast Facts
Background
- Founded in 1990, franchising since 2005
- Based in Maryland; 17 locations open at the start of 2022
- Senior care franchise
Fees + Investment
- Royalty: 4.75%
- Brand Fund: 0.5%
- Franchise Fee: $47,500
- Initial Investment: $85,800 – $110,400
Financial Performance
- The below table disclose information on 5 franchises that were open for at least 3 years from 2019 onward
The Wolf’s Take 🍟
This is the 3rd or 4th senior care brand I’ve covered, and every one has had really great economics. They’re low cost, and within a few years (as the numbers above indicate) you can have some very healthy cash flow.
This time around, I’ll spare you the speech on why businesses focused on baby boomers are going to have a great few decades. If you think a Senior Care brand could be a good fit for you, check out this franchise!
Resources
2) Honest Abe Roofing
Fast Facts
Background
- Founded in 2007, franchising since 2017
- Based in Indiana; 21 locations open at the start of 2022
- Roofing consultations, installations, and repairs
Fees + Investment
- Royalty: 5%
- Brand Fund: 2%
- Franchise Fee: $35,000 – $70,000
- Initial Investment: $132,498 – $363,223
Financial Performance
- The table below discloses gross sales information for 7 franchised Honest Abe roofing businesses in 2021, all of which were open for at least 1 full calendar year
The Wolf’s Take 🍟
Last year’s financials for Honest Abe disclosed 2 franchises that on average did close to $2.9M in revenue in 2020.
It is expected for emerging brands that as the sample size of franchisees increases, the average revenue will usually decline (assuming it was starting from a high point).
With that said, there is quite a discrepancy between the average and the median performer – but with an investment that tops out at $363K, ~$1.3M is still a great return on investment.
Check out Honest Abe if you’re looking to get into home services!
Resources
FROM THE POD
Bonus Podcast – Level 5 Capital
Private Equity 🤝Franchises
If you’ve ever wondered about how private equity works with franchise brands, and multi-unit franchisees, you’ll love my conversation with two managing directors at Level 5 Capital.
Level 5 has invested in brands like OrangeTheory as a franchisee, and made equity investments in franchisors such as Restore Hyper Wellness, Big Blue Swim School, and more.
Check out my conversation here !
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.