🍟 5/18/2023 – Two Low Cost, High Return Franchises

FRANCHISES OF THE WEEK

1) HomeWell Care Services

Fast Facts

Background

  • Founded in 2002, franchising since 2003
  • Based in Burkburnett, TX; 106 locations open at the start of 2022
  • Provides non-medical home care services to individuals in need of assistance with daily activities

Fees + Investment

  • Royalty: 5%
  • Brand Fund: 2% 
  • Franchise Fee: $49,500 
  • Initial Investment: $96,900 – $225,800

Financial Performance

The financial performance information presented below is based on the historical results for the 2022 calendar year for all HomeWell businesses that were open as of the end of the 2022 calendar year. There were no company operated businesses. 

The Wolf’s Take 🍟

Senior care franchises are consistently showing the potential for reasonable investments with healthy cash flow returns, and HomeWell Care is no different. 

Remember folks: the market you choose is arguably the most important factor in the success of a business. 

Senior Care appears to be a winning category at the moment, and likely will for the coming years. 

Website to this franchise below!

Resources

2) Skyhawks Sports & Supertots Sports Academy

Fast Facts

Background

  • Founded in 1979, franchising since 2007
  • Based in Spokane, WA; 231 locations open at the start of 2022
  • Sports programs and camps for children, offering a wide range of activities to promote physical fitness, sportsmanship, and teamwork

Fees + Investment

  • Royalty: 6-9%
  • Brand Fund: 2%
  • Franchise Fee: $15,000 – $42,500
  • Initial Investment: $30,300 – $89,750

Financial Performance

  • The information provided in Table 2 consists of the actual performance of the Skyhawks Franchise Reporting Group during the 2020, 2021 and 2022 Reporting Periods. 

The Wolf’s Take 🍟

Youth Sports has been a category I’ve been covering recently, and Skyhawks is one to look at.

These are interesting businesses as they offer lower investment profiles than home services, but are a far different operational experience. However, the asset-lite model is fairly similar – and – relating to Monday’s piece on Buzz Franchise Brands, this is how they ended up incorporating British Swim School into their portfolio. 

If you’ve been scouting Youth Sports franchises, check out Skyhawks!

Resources

FROM THE POD

Jacob Jaber – Philz Coffee

Philz Coffee is one of the most legendary coffee chains in America. For the uninitiated, the 70+ unit chain is largely based in California.

Founded in San Francisco, it’s the de-facto coffee spot for the tech + VC industry, and is known for it’s unique menu and welcoming vibe.

I spoke to the co-founder, Jacob Jaber, on the pod to learn about the Philz story.

We talk brand building, consumer businesses, why Philz isn’t a franchise, and what he’s up to these days when it comes to angel investing.
Check out our conversation here!

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