Hey Empire Builders,
Welcome to this week’s Franchise Empire Newsletter, where we share specific franchise opportunities that we think are interesting, and examples of everyday folks building their empires.
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Goodbye brick and mortar.
What we are starting to see is a passing of the torch in the franchise space.
People are less likely to buy brick and mortar these days. Whether it’s food, or fitness, or whatever.
There’s nothing wrong with brick and mortar, but there are a bunch of pros and cons to it.
Some of the cons are that you typically need to sign a 5-10 year lease, it’ll take you a year to get open after you sign your franchise agreement, and your commercial rents are REALLY expensive right now.
So service franchises are booming. The scalability of them is incredible too. You start out with low investment and hire or grow your fleet as you grow.
It’s pretty cool.
I’ll talk about it more when we do our live version of this newsletter on YouTube Monday at 1pm EST.
Tariq
CEO & Founder, Franchise Empire
Today, in 5 minutes or less:
✔ 1 Specific resale franchise for sale
✔ 1 Franchise of the week
✔ 1 Client Case study of someone just like you
✔ Latest episode of The Franchise Empire Show
Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners
FEATURED RESALE
Franchise resales possess many benefits for aspiring business owners – established cash flow, experienced employees, systems in place, and brand awareness to name a few.
This week, our featured resale comes from WOW 1 Day Painting, a residential and commercial painting franchise. WOW 1 Day Painting was founded by the same owner/company as 1-800 Got Junk, the largest junk removal company in North America, and Shack Shine, a window cleaning and powerwashing franchise. The WOW franchise was started in 2010, and has 42 units throughout North America.
Allentown, PA
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Started in 2018
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Asking price of $299,000
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Fully operational business with physical assets and employees to scale
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2023 revenue of $1.0M+
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Owner is selling due to health issues
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4.9 Google Review score (76 reviews); 96 NPS
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70% of business driven by repeat and referral customers
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4 branded vehicles and equipment included in sale
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840 sf shop location for lease
Franchise Empire’s Take:
- Turnkey opportunity in a franchise system within the home services industry. 1-800 Got Junk is a sister company, and one of the largest franchises in the home services industry. This business is built on the same systems and by the same leadership team.
- Speed + Quality = WOW. The franchise system is offering fast, quality services to their customers, and the messaging is used in their branding and marketing campaigns.
- WOW has relationships with Benjamin Moore, Sherwin Williams and PPG Paints suppliers so its network of franchisees can receive discounted rates for paint supplies and products.
Curious to learn more about this particular franchise resale, or other resales available in your area?
CLIENT CASE STUDY
Emmanuel bought a resale franchise that 2 previous owners were struggling with. His story was fitting since we have 2 painting franchises in this newsletter.
He lives right by me so we met up a couple of weeks ago and had lunch and he shared that his sales in January were up 100% Y/Y from the previous owner. 🤯
No video testimonial yet, but we’ll be doing a video with him soon. Our team helped him source the franchise resale, and he bought it for a STEAL.
Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)
Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.
This Will Save You So Much Time.
We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.
FRANCHISE OF THE MONTH
History:
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Started by the original founder and owner of Five Star Painting along with the former Director of Marketing at Five Star Painting.
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Franchising since February 2016
Numbers:
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Corporate Owned Territories: 0
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Franchise Units: 36
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Franchise Fee: $49,500
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Royalty: 5%
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National Marketing Fee: 2%
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Total Investment Range: $70,910 – $133,520
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Term: 8 years
**Numbers according to their FDD released on May 18, 2023.
Description:
Painter1 does both interior and exterior painting for Residential and Commercial customers. They can also do wallpaper removal, texture removal, drywall repair and painting kitchen cabinets. Painter1 aims to not be the “corporate stiffs” and truly want to be your teammates. The founders have extensive experience in the painting industry and want to do things differently by making things more appealing to the franchisee by way of lower fees, less restrictions, incentives to earn more money, etc.
Financial Data:
Below tables taken from the Painter1 2023 Franchise Disclosure Document – Item 19.
Benefits for the Franchisee:
- No Territory Restrictions – this is definitely a difference amongst most franchises. Painter1 allows you to work in whatever territory you want. There is no exclusivity like you typically find. This can be seen as a huge advantage or a con depending on how you look at it.
- Rebates – 100% of all the painting rebates go back directly to the franchisee. The franchisor does not take any cut of those.
- Equity – all franchisees are part of a 10% owner’s equity pool in the franchise system. This is not something we’ve seen with any other franchisor.
- Mentor Program – if you’re a new franchisee, you’ll be paired up with a mentor. That mentor is your go-to person with your questions and supporting you in your business. Your mentor gets paid part of your royalty payment. This is not in addition, but comes out of the already low 5% you pay and corporate just takes less royalty. As you are more established in your business, you’ll be able to become the mentor of a new franchisee..
- Home Based – no required brick and mortar. You’ll operate with sub-contractors to start and can eventually hire FT crews when/if necessary.
To see if this franchise is available in your territory
OR
Check the availability of ALL franchises in your area
Episode #42: How I Built TWO $500 Million Dollar Companies
Join me in an engaging episode where we sit down with John Hewitt, a trailblazer in the tax franchise industry and the founder of two of the largest tax franchises in the U.S.
Dive into John’s interesting journey, where he shares the role of belief and mental toughness in carving out success. From the strategic moves behind acquiring and starting tax franchises to the clever use of guerrilla marketing, John opens up about the highs and lows of his entrepreneurial path.
He sheds light on the importance of following a proven system and always considering what’s best for others. Don’t miss John’s inspiring story, filled with valuable insights and lessons on overcoming obstacles, scaling a business, and the continuous pursuit of personal and professional growth.
Sit back, relax, and enjoy the show
That’s a wrap for this week’s Franchise Empire newsletter.
Feel free to reply with any questions, or feedback. I appreciate and value your time and attention.
I’ll see you at the same time next week!
-Tariq and The Franchise Empire Team