🍟 7/28/2022 – Two Low Cost Franchises You Can Run From Home

FRANCHISES OF THE WEEK

1) Everline

Fast Facts

Background

  • 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

Financial Performance

  • 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! 

Resources

2) Blue Moon Estate Sales

Fast Facts

Background

  • 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

Financial Performance

  • 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!

Resources

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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