🍟 7/28/2022 – Two Low Cost Franchises You Can Run From Home
FRANCHISES OF THE WEEK
- Founded in 2012, franchising since 2021
- Based in Alberta, Canada; 30+ territories sold
- Line striping and pavement maintenance service business
Fees + Investment
- Royalty: 6%
- Brand Fund: 2%
- Franchise Fee: $49,500
- Initial Investment: $155,341 – $237,146
- The below table displays performance data from the affiliate location that operated in a territory of ~1.5 million people (note: typical territory is 350,000 people)
- The dollars are in Canadian dollars, not US (current exchange rate: 1 CAD = 0.78 US $)
The Wolf’s Take
Right off the bat, it’s important to note that while the financials above are impressive, they:
A) Are in Canadian dollars (0.78% conversion rate)
B) Operate in a territory of ~1.5M which would be roughly 4.2 territories
Regardless, this franchise still offers the potential for a fantastic ROI, and it’s no surprise they’ve had high unit growth in the last year.
Like many home services brands, Everlane offers a home based franchise, but with the steadier and higher ticket revenue streams of B2B & government clients.
Give this brand a look if you’re interested in service businesses!
2) Blue Moon Estate Sales
- Founded in 2009, franchising since 2013
- Based in Michigan; 63+ locations open at the start of 2022
- An estate sales franchise
Fees + Investment
- Royalty: 5%
- Brand Fund: 1%
- Franchise Fee: $52,000
- Initial Investment: $70,590 – $85,525
- The below table shows performance data for franchisees in 2021
The Wolf’s Take
I’ve said it once (and probably twice), but businesses providing services for the aging baby boomer population will have a steady flow of customers for the next 20 years!
Blue Moon is one of them, as they can usher the sale of home items during a move out or before the sale of a house.
They’re also owned by Best Life Brands a PE backed holding company that owns other franchises in the home-care and senior-care space. The synergies with Blue Moon are fantastic, and I’m guessing they’re leveraging them to generate leads for Blue Moon at a lower cost to franchisees.
Give this low cost brand a look!
FROM THE POD
Matt Stapleton – Go Mini’s
This was a super interesting conversation with a franchise owner of a portable storage unit rental company.
While it’s not a sexy business, it does produce great cashflow. Matt’s done some awesome things to get to this point:
- Reduced the up-front cash investment by 90% via SBA financing
- As the owner of Go Mini’s, he decides how much he wants to work
- Has worked each job in the business so he can now train every employee based off his experience
If you want to listen to it in full, click here!
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