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 got a recent update from our team on the people that have the most success working with us.

In the franchise world, there’s all kinds of franchisors and brokers saying “HEY! Become a semi-absentee owner with us!”

“Work just 5-10 hours a week in your business”.

It’s bullshit. Business is hard and if you put in part time effort, you’re going to get part time results.

We just learned that over 80% of our clients that we work with, that actually wind up buying a franchise…

Plan to go FULL TIME in their business within the first 6 months, and most of them go Full Time right away.

Meaning they take the truest and boldest “Leap of Faith”.

I see it all the time. Full Time owners are WAY more successful in franchises than Part Time owners. The difference is staggering.

Go all in. You might surprise yourself.

P.S. – Your parachute can only open if you jump. It doesn’t open when your feet stay on solid ground.

– Tariq

CEO & Founder, Franchise Empire

Today, in 5 minutes or less:

✔ Service Franchise with $4,400 Average Job Size

✔ Resale in North Carolina with $685k in Annual Revenue

✔ In just 12 months- one of the Top Performing Newest Franchisees

✔ What You Should Look For In A Franchise with Erik Van Horn

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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 Mr. Electric, a Neighborly brand. Established in 1994, and acquired by Neighborly in 2007, Mr. Electric has grown to approximately 190 units throughout the country. Mr. Electric sells, services, repairs, installs and maintains electrical systems, equipment, components and supplies, including upgrades, remodeling and related services for both residential and commercial customers.

• Started in 2021

• 2023 revenue of $685,000

• Asking price of $850,000

• 4 vehicles equipped with all tools and equipment

• 3 electricians, 1 office administrator

• Small industrial/office lease

• According to the FDD, the average sales for franchisees with a territory of 500K+ population is $1.63M amongst all reporting franchisees.

   

• The industry is constantly advancing. Electricity doesn’t look the same that it used to 20, 10 or even 5 years ago. People want advanced technology, with speakers in every room and smart lights.

   

• Corporate has a call center that will answer incoming calls and put them on the next available appointment with your technician.

Last July we helped a client of ours find a home improvement franchise.

We just heard back from his franchisor that he’s one of the top performing franchisees that opened their business around the same time as him.

His story of what his challenge was and how we helped is below.

Dereck was an ideal client. Hungry, experienced, and ready to make a change in his life.

He was the Director of Operations for a fitness concept in his area, and managed 10 locations for the owners. He had invested in real estate previously, but realized it wasn’t going to replace the income he wanted to make on a yearly basis.

He also wanted to dive into a business to build for himself. He was originally looking at a KidStrong concept, but realized something with lower overhead and faster ramp up may be better.

He ended up buying two territories of a well-established (40 years in the industry) floor remodeling franchise.

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.

• Originally started in 2007 and started franchising shortly after

• Acquired by Neighborly in 2015

• Corporate Owned Territories: 0

• Franchise Units: 234

• Franchise Fee: $45,000 

• Royalty: 6%

• National Marketing Fee: 2%

• Total Investment Range: $77,449 – $184,529

• Term: 10 years
  **Numbers according to their FDD released on April 1, 2024, as amended July 1, 2024.

Five Star Painting specializes in residential and commercial painting services. They offer a range of services, including interior and exterior painting, cabinetry refinishing, and drywall repair. The franchise focuses on providing high-quality workmanship and customer service, with an emphasis on professionalism and reliability. Your day might start with a morning check-in with your team of painters and crew leaders. You’ll review the day’s schedule and make sure everyone is prepared and ready to deliver high-quality work. Throughout the day, you’ll oversee various projects and work closely with your team to ensure that everything is running smoothly. Whether you’re working on a residential or commercial painting job, you can rely on the Five Star Painting brand to provide you with a streamlined process for estimating, scheduling, and completing projects.

Below tables taken from the Five Star Painting 2024 Franchise Disclosure Document – Item 19, page 63.

Benefits for the Franchisee:

• Flexible Schedule – Family-friendly work week, no emergency or on-call work.

• Call Center – Fields leads and schedules appointments so you don’t have to answer incoming calls or pay someone to do that for you.

• Home Based – no required brick and mortar. You’ll operate with sub-contractors to start and can eventually hire FT crews when/if necessary.

• Consistent Demand – There’s always a need for painting services, whether for new construction, renovations, or regular maintenance. This creates a reliable flow of potential clients.

• Neighborly – Get increased exposure on GetNeighborly.com and market directly to our other home-service Neighborly brands. Gain access to substantial ProTradeNet vendor discounts and rebate programs.

Episode #72 – REVEALED: What You Should Look for In A Franchise

On this episode, I sat down with Erik Van Horn, who is one of the most-known names in the franchise circles.

He’s the founder and man behind Franchise Secrets and Scalable Franchise, and he’s a cofounder at Front Street Equity Partners.

I’m a huge believer in modeling other successful people, so I wanted to know some of the key decisions that led to Erik’s success and how you can model it.

I wanted to know what he looks for in franchise brands to invest in, and, at the end of the day, what’s the balance in responsibility between a franchise owner’s success:

Is the franchisor responsible or is the franchisee responsible?

I think his answer will surprise you.

So sit back, relax, 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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