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.

Given we are talking about a franchise that the top franchisee makes $35million dollars a year, we have to talk about how that happens…

OVER TIME.

It does not happen overnight.

If you are getting into a franchise or any business for that matter too focused on trying to make a bunch of money in year 1, then you are setting yourself up for failure OR…

Expectations that likely won’t be met.

It takes time to compound efforts.

My philosophy is franchises take about 3 years to reach maturity.

A lot of franchisees that are CRUSHING it, have been in business for 5+ years.

Tony Robbins used to say most people OVERestimate what they can do in 1 year and UNDERestimate what they can do in 10.

Think longer term, and you’ll put yourself in the best position to win, over time.

What do you think about this? Let us know at [email protected] (tip: include Week 26 in the subject line)

Tariq

CEO & Founder, Franchise Empire

Today, in 5 minutes or less:

✔ A Franchise with Average Sales of $5.3million and $35million from TOP Franchisee

✔ A Confidential Resale that’s been operating for 15 years

✔ Case Study from an entrepreneur who wanted to diversify their income.

✔ Latest episode of The Franchise Empire Show with Anne Huntington Sharma

Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners

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 a well-established massage therapy franchise that has 250 open locations throughout the United States. The brand provides a variety of massage therapy modalities to clients who are primarily seeking pain relief, stress reduction and an overall wellness benefit.

• Started in 2008
  

• Asking price of $625,000
  

• 8 massage rooms
  

• 23 employees
  

• 580 active customers/members

• The consumer need for massage therapy is big – most Americans suffer from back pain, muscle pain and routine stress, which are the primary reasons people seek their first massage service. The core of the business model allows clients to become members to take advantage of a lower price point and gets them in the habit of regular massage sessions. For the franchise owners, this creates a recurring revenue stream that helps stabilize their business over time.
  

• According to the 2023 numbers in the FDD, all clinics open at least one year (228 locations) had an AUV of $905,665, with the highest annual revenue at $2.51M.

Chris and Rhonda own a family business and wanted to diversify their income so they could continue to give back to their local church and community. They wanted something that sparked their creative interests, but also was scalable and profitable. Closet Factory ended up being the perfect fit.

Here are 5 Low Cost Franchises that make
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• Started in 1983 in California by John La Barbera who is still the company’s CEO.

• La Barbera also still owns 6 corporately run locations in California.

• They started franchising in 1985.

• No parent companies or acquisitions.

• Corporate Owned Territories: 6

• Franchise Units: 78

• Franchise Fee: $58,500

• Royalty: 6.75%

• National Marketing Fee: only local marketing required

• Total Investment Range: $344,500 – $611,500
  **Numbers according to their FDD released on April 19, 2024.

Closet Factory will market, design, manufacture, construct, install, repair and service custom closets and storage systems for residential customers. They have a larger range of products than any of their competitors and every project is customized to the homeowner. You’d own a facility where all the manufacturing is done in house and you’ll have a handful of employees with this franchise from day 1. When a customer signs for a job, you’ll get 50% upfront which covers all of your costs to do the project. Closet Factory franchisees are very collaborative and you’ll be given a fellow franchisee as a mentor when you join. 

Below tables taken from the Closet Factory 2024 Franchise Disclosure Document – Item 19.

Benefits for the Franchisee:

• Costco Partnership – you’ll be able to have a kiosk in every Costco store within your large territory. This will give you valuable exposure to your core audience and helps you win business on an ongoing basis.

• Multiple Product Lines – Their product line includes solutions for garages, home offices, man caves, pantries, and more. Their quest to continually update their product was born out of the one problem all businesses want to have: the constant requests from our customers to do more.

• Large Territories – Closet Factory will likely never have hundreds of territories because each one is massive. Territories could be half a million in population or more!

• Extremely High Revenue Potential – This is likely one of the highest gross revenues you’ll find in an item 19. The average sales in 2023 from the bottom quartile was $1.1 million. Average sales of the first quartile is $12 million with the top franchisee doing $35 million.

Episode #51: What Top-Performing Franchisees Do Differently

Get the inside scoop on Huntington Learning Center from the president herself, Anne Huntington Sharma.

We talked about some of the key strategies of their top-performing franchisees and how to crush your goals as an owner.

Learn about the surprising costs, earnings, and the rapid changes they made to thrive during COVID-19 in this must-listen episode.

Sit back, take some notes, and enjoy the show!

Watch on YouTube

Listen on Podcast Platforms

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

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