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.

I’m sitting here in our resort looking at this INSANELY EPIC view of the ocean right now, getting to tell you about a franchise opportunity that could be completely life changing for you and your family, possibly for generations to come.

I’m traveling for a business mastermind that I’m a part of to spend 3 full days reflecting on this past year in business and setting goals and an execution strategy for 2024. 

It’s one of the most incredible trips I’ve ever taken, and the BEST part…

It’s all a tax write off. 

It’s one of the really amazing perks of owning a business. The things you can write off.

That’s besides the point…

Just imagine for a second what owning your dream business would be like…

What would that do for you and your family? 

How would life be different?

How would you feel about yourself?

You know what I’ve learned over the years? It takes a lot of courage to dream about what’s possible. 

Sometimes it’s scary to dream, because the pain of not making your dream a reality can be really painful. 

It takes even MORE courage to actually take a risk and do something about it. 

8 years ago, my wife and I pulled $300,000 of equity out of our home to buy…

A juice and smoothie franchise of all things!!! It was downright terrifying, and my wife almost killed me over it lol.

The reality is if we never took that $300k out and did a crazy thing like buy that franchise, we wouldn’t be where we are now.

Then less than a year later we moved 2,500 miles away, while still owning the first store and I took ALL of the money I made from the sale of a rental I had and bought a FAILING franchise resale that was an incredibly difficult turnaround. (it took me a year, but I increased sales over 35%…but it sucked)

Here’s the thing!! ….I didn’t know 10% of what I know now about franchises and business. 

Want to know one of the things I did NOT know?

That I could buy an existing franchise that was already making money and profiting… and, by doing so, condense my timeline to my financial goals and potentially eliminate a TON of risk.

Now, I don’t believe in regret, and I trust God’s plan for my life. Everything happens for a reason.

It led me to where I am now, and ohhhh boy the view is pretty sweet. 

In all seriousness, take a minute and think about what you want your life to look like a year from now…

Will you be able to make it happen in your current work or business? 

If not, franchising could be your stepping stone to get to where you want to go.

I’m just saying…

Here’s the thing, I wouldn’t wait passively until a business for sale comes around in your area.

One of the best ways to buy an existing franchise is to ALREADY be a franchisee in the system.

Oftentimes deals get bought by the neighboring franchisees and never even make it to the public.

Think about that!

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

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 an industry leader in the custom storage solutions category, Closet Factory. Established in 1985, Closet Factory has 74 franchise locations throughout the United States. Closet Factory creates and manufactures custom, built-in home organization systems for every area of the home, including garages, home offices, man caves, pantries, and more.

• Asking price of $1,625,000

• Established showroom and warehouse location in Cleveland metro area

• Part of a $13 billion home organization industry

• Top quartile of franchise owners have an AUV of $13.2M! (according to the 2023 FDD)

• Franchise provides large, exclusive territories compared to that of the competition

• Potential owners need a minimum net worth of $1.0M and liquidity of $250K

• Closet Factory has been in business nearly 40 years, and it shows through their financial performance, which is one of the strongest in the industry. In addition to an amazing Item 19, the system boasts over a 96% retention rate amongst their franchise owners. The average Closet Factory franchise owner has been in business for 17 years!

• Obviously, this is a steep asking price which leads us to believe it’s a highly profitable, turnkey business with room to grow. 

• Based on the current asking price, a potential buyer would need a minimum of 10%, or $162,500 cash, to acquire an SBA loan for this resale.

One of our clients Tarik- ( no relation, and yes same pronunciation), joined our Zero to Profitable Franchise system and REALLY wanted to buy an existing franchise.

His dream for a long time was to own a store front.

He was an engineer and was tired of it. He wanted to provide a better life for his family, and more flexibility.

With the help of our ZTPF system, he was able to successfully acquire an existing franchise that MORE than replaced his income.

Check out his story on how he bought a franchise resale that replaced his income and allowed him to go all in and full time in his business from Day 1.

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.

• Founded in 1992 in Australia. They have locations in the US, Australia, and New Zealand

• First opened in the US in 2015 in Arizona. HQ is in Dallas, TX

• Parent companies are NVP XVI and NVP LLLP

• Corporate Owned Territories: 1

• Franchise Units: 62 in the US, another 300+ globally

• Franchise Fee: $49,500

• Royalty: 7%, 6%, 5% – sliding scale down as revenues go up 

• National Marketing Fee: 3%, 2%, 1%  – sliding scale down as revenues go up 

• Total Investment Range: $182,072 – $430,322

• Term: 10 years
  **Numbers according to their FDD released on May 22, 2023

PoolWerx does everything from pool maintenance, cleaning and servicing, swimming pool equipment sales and repairs, and retail sales for both for residential and commercial pools. This is a franchise with both a retail aspect (between 1000-2000 sq ft.) and a home services aspect where techs visit the customer’s pool. Small local pool businesses also have the opportunity to convert to a PoolWerx franchise. 

Below tables taken from the PoolWerx 2023 Franchise Disclosure Document – Item 19.

Benefits for the Franchisee:

• Highly Scalable – Owners are given the option of starting with just 1 van, or starting with a van and the retail location. They can then scale by adding more vans and multiple retail locations within their territory or expanding into new open territories closeby.

• Multiple Revenue Streams – While PoolWerx doesn’t build new pools they are able to satisfy the “do it myself” customer by selling them products at the retail location and the “do it for me” customer by servicing their pools with their tech. Revenue comes from cleaning, supplies, parts, maintenance, repairs, and equipment sales and installation.

• Acquire the Competition – One way of growing in this brand could be by acquiring smaller local pool companies and converting them to PoolWerx. This is one way you can expand without buying new territory.

• Quick Ramp Up – Regardless if you’ve chosen to have a retail component or not, you can get started within just a few months of signing your agreement. While you wait to find a location and get that ready, you can get a tech in a van started right away with weekly pool cleanings and repairs. You’ll start with 1-2 employees and grow to 7+.

Episode #30: BIGGEST Mistakes People Make When Buying a Franchise

Making mistakes during the franchise buying process can be costly.

Not only can they cost you thousands (if not more) of dollars, they can cost you a ton of time in the form of setbacks.

If you can avoid these mistakes you’ll save a ton of money and time.

So on this week’s episode of the podcast, we dive deep into some of the biggest mistakes I see people make when buying a franchise.

Make sure to take some notes throughout this video so you too can avoid these mistakes.

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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