🍟 4/27/2023 – Wellness Franchise Showing 35% Margins

FRANCHISES OF THE WEEK

1) Premier Pools & Spas

Fast Facts

Background

  • Founded in 1988, franchising since 2014
  • Based in Roseville, CA; 119 locations open at the start of 2022
  • Premier Pools & Spas is the world’s largest inground pool builder that specializes in pool construction, design, and repair.

Fees + Investment

  • Royalty: 3.5-4%
  • Brand Fund: $500 per month for the first 12 months, and thereafter up to 1% of Gross Revenues
  • Franchise Fee: $45,000
  • Initial Investment: $53,000 – $112,500

Financial Performance

  • This Financial Performance Representation reflects the historical average and median Gross Revenues for seventy (70) Franchised Businesses which were open and operating for a full year as of December 31, 2021.

The Wolf’s Take 🍟

The pool business is a niche area of focus relative to other home services sectors like gutter cleaning, roofing, etc. But it definitely can pay well, with Premier Pools & Spas averaging $5.7M in revenue.

Now pool construction certainly is more resource intensive between labor and supplies than your typical home services job, but I’d imagine franchisees are still getting a great return on their investment based on the average return.

Residential customers of any type are never an “easy” sale, but many of the people requesting quotes on pools are above-average income families, which means you can likely command a higher margin service compared to other home-services jobs.

If you’re interested in a service business, check this brand out below!

Resources

2) beem Light Sauna

Fast Facts

Background

  • Founded in 2021, franchising since 2022
  • Based in North Carolina, 3 locations open (70+ in development)
  • Infrared sauna suites, red light therapy rooms, related services/products

Fees + Investment

  • Royalty: 7%
  • Brand Fund: 1%
  • Franchise Fee: $49,900
  • Initial Investment: $209,250 – $568,750

Financial Performance

The Wolf’s Take 🍟

beem Light Sauna (not a typo – beem with a lowercase b is how the brand presents) shows impressive unit economics via their 2 affiliate locations. 

Wellness concepts have been heating up, with SweatHouz and Perspire gaining tons of traction in the past year. beem Light Sauna has also benefited from the growing interest in wellness services like red light therapy, sauna sessions, and more – the 70+ units in development are a testament to that. 

As you can see, these businesses don’t require monster revenue per location, as the services can be provided at a high margin (affiliates showing over 35%!).

If you’re interested in this franchise, the website is below! I also included my podcast conversation with their founder, Cynthia May, who was an awesome guest and had an inspirational journey to founding this business.

Resources

FROM THE POD

Zach & Tyler Gordon – Uptown Cheapskate & Kid To Kid

Plain and simple, I’ve rarely (if ever) come across a franchise with:

  • Industry tailwinds
  • Great unit economics 
  • Fantastic executive team
  • Legitimate technology moat

But I truly believe that’s what Zach & Tyler Gordon have on their hands with Uptown Cheapskate. And for all the different industries out there, it’s in…the clothing resale industry.
Check out our 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.