🍟 10/12/2023 – Wellness Franchise Showing 37% Profit Margins
FRANCHISES OF THE WEEK
1) Pause
Fast Facts
Background
- HQ: Los Angeles, California
- Founded in 2016, franchising since 2022
- Wellness studio offering cold plunges, infrared saunas, cryotherapy, LED light therapy, IV drip therapy, and more
Location Trends
Franchise Fees
- Royalty: 7%
- Brand Fund: 1%
- Franchise Fee: $60,000
Financial Overview
- The below table discloses information from an affiliate location that was open for all of 2022
The Wolf’s Take 🍟
Pause shows the potential for a *high* margin franchise with their affiliate location in Venice Beach, California.
They offer a wide range of wellness services as well, from cold plunges to contrast therapy.
From a macro angle in the franchise industry, it’s clear that the Wellness Studio Wars have begun, as Pause joins other franchises like SweatHouz, Perspire, beem Light Sauna, and others in the race to become a new stop in consumers health routines.
Time will tell how new units perform, but Pause is definitely a formidable competitor, as they have an experienced leadership team in this arena, with their CEO and President formerly leading marketing, and real estate, at Equinox.
If you’re interested in wellness franchises, check them out via the link below!
Resources
2) Pizza Guys
Fast Facts
Background
- HQ: Rancho Cordova, CA
- Founded in 1986, franchising since 1994
- Pizza Guys is a franchise that specializes in delivering a wide variety of pizzas and other Italian-inspired dishes to customers in a fast and convenient manner.
Location Trends
Franchise Fees
- Royalty: 5%
- Brand Fund: 0%
- Franchise Fee: $25,000
Financial Overview
- The below table discloses information on 64 Pizza Guys Stores operating for the entire calendar year ending December 31, 2021
The Wolf’s Take 🍟
Pizza Guys is a regional franchise largely with locations up and down California. They may not be nationally known, but their average unit volume is quite impressive relative to many of the big pizza brands out there.
It’s unclear how a unit would fare in a brand new market, but if you’re interested in food franchises and live on or near the west coast, this could be an interesting brand to jump into!
Resources
FROM THE POD
The Wolf – 10 of the Most Fascinating Franchise Facts
This episode was an audio recap of my recent newsletter, Ten Surprising Facts About The Franchise Industry.
Take a listen here!
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